Kuala Lumpur shares close higher on foreign funds return, oil price drop
-UPDATE 12/10/2006
- Share prices closed the day significantly
higher as some foreign funds returned to the local stockmarket, where
sentiment was boosted by the drop in crude oil prices in New York overnight,
dealers said.
The Kuala Lumpur Composite Index (KLCI) finished the day up 5.25 points
or 0.52 pct at 975.62, off an intraday high of 975.75 but wiping out an
opening loss of 0.19 of a point at 970.18.
The FTSE Bursa Malaysia 30 large-cap index rose 35.02 points to 6,327.54,
while the second board index advanced 0.76 of a point to 84.95.
Gainers led losers 507 to 225, with 321 stocks unchanged.
Trading volume was 840.37 mln shares valued at 1.122 bln rgt.
''Today we saw a real breakout, which has not happened for some time,''
said Steven Soo of TA Securities, referring to a sustained rally in the
benchmark index to solid ground above the pscyhological resistance level of
970 points.
''There was a real build-up of momentum today,'' he added.
A major factor, apart from falling oil prices, Steven said, was the
return of foreign investors to Bursa Malaysia.
''There was pent-up demand, which was released, and this can be
attributed to foreign funds coming back to the market,'' he said.
At the close, airline stocks Air Asia and Malaysia Airlines gained from
the fall in oil prices, with Air Asia jumping 0.10 rgt or 6.4 pct to 1.64
while MAS rose 0.04 rgt to 3.48 rgt.
The price of light, sweet crude settled down 93 cents at 57.59 usd on the
New York Mercantile Exchange overnight, the lowest settlement of the year,
amid increasing doubts about whether OPEC's members could agree on an
immediate cut in production.
Among the heavyweights, Tenaga gained 0.05 rgt or 0.51 pct to 9.80 rgt
ahead of the release of its fourth-quarter and fiscal year to August results.
Telekom Malaysia gained 0.05 rgt to 9.05 while Maybank was flat at 11.30.
Elsewhere, LCL Corp was flat at 1.69 after gaining 0.01 rgt earlier in
morning trade on a report the company plans to transfer to the main board.
Worldwide Holdings lost 0.12 rgt to 3.18 after the company said the High
Court has rejected an application for a shareholder meeting to decide on a
takeover offer.
Ramunia Holdings eased 0.01 rgt to 1.20 after profit-taking pared gains
made earlier on speculation that Sime Darby Bhd might launch a takeover offer
for the company as early as next week

Market is at the peak...cash out for next round of crash...

For CPO market...market is at the turning points of correction...toward 1500 levels...

Regard

Anthony Wong