Kuala Lumpur shares close lower on profit-taking; Genting rebounds - UPDATE 3/10/2006
- Share prices closed weaker as profit-taking in
blue chips continued in afternoon trade, and combined with a lack of fresh
leads, wiped out yesterday's gains led by DiGi.com, although the market's
overall fall was limited by a rebound in Genting, dealers said.
The Kuala Lumpur Composite Index was down 2.11 pts or 0.21 pct at 967.56.
The FTSE Bursa Malaysia 30 large-cap index fell 43.89 pts to 6227.08,
while the second board index lost 0.22 pts to 82.93.
Losers led gainers 333 to 238, with 324 stocks unchanged and 307
untraded.
Trading volume was 407.59 mln shares valued at 701.62 mln rgt.
''Apart from profit-taking, the market also suffered from a lack of fresh
leads,'' said Cheah King Yoong of SJ Securities.
''There's nothing going for the market right now except for some
speculative play,'' he added.
The construction sector, which came under the spotlight following the
announcement of the 9th Malaysia plan, has also been quiet, Cheah said.
''Until the government starts to implement the projects, not much will
happen,'' he said.
He added that the market would likely trade in the range of 962 to 970
pts for the rest of the week.
TA Securities agreed that the outlook is not promising considering the
persistently weak buying momentum.
An upside should prove unsustainable under current market conditions, the
research house said.
At the close, Digi.com was down 0.30 or 2.3 pct at 12.70 as traders took
profit after yesterday's 0.50 rgt or 4 pct gain in the stock due to interest
generated by the company's capital repayment, for which the entitlement date
has been set for October 16.
Resorts World was down 0.30 rgt or 2.7 pct at 10.80 and Maybank down 0.10
rgt at 11.20, also due to profit-taking.
Genting rebounded from a 0.30 rgt fall in the morning session to a gain
of 0.30 rgt, or 1.26 pct, to 24.20 at the close.
Speculation of a tie-up between DiGi.Com Bhd and Time dotcom Bhd boosted
Time dotCom and Time shares, dealers said. Time dotcom gained 0.01.rgt to 0.
66, while Time rose 0.02 rgt or 3.28 pct to 0.63.
Tenaga was down 0.05 rgt at 9.60, while Telekom Malaysia was flat at 9.15.
Some stocks, however, gained and prevented the market from falling
further.
Telecom-related stock Nasioncom firmed 0.005 rgt or 3.45 pct to 0.15.
Tanjung Offshore Bhd was sharply higher after the company announced its
unit, Tanjung Offshore Services Sdn Bhd, has been awarded a contract worth
about 10 mln rgt by Larsen & Toubro Ltd. Tanjung Offshore Bhd was up 0.14
rgt or 5.79 pct at 2.56.
VADS was higher on news that it has secured a five-year contact worth 254.
6 mln rgt from affiliate TM Retail. The stock gained 0.25 rgt or 3.97 pct at
6.55.
Berjaya Capital rose 0.12 rgt to 1.18, on news that Sompo Japan Insurance
Inc has proposed to acquire a 30 pct stake in its wholly-owned unit Berjaya
General Insurance, after Bank Negara Malaysia approved the start of
negotiations.
Sime Engineering Services was higher after a consortium, comprising
wholly-owned unit Sime Engineering and Mitsui & Co Power System Corp, secured
a 47.6 mln usd power plant project in Thailand. Sime Engineering gained 0.03
rgt to 1.42.

For tomorrow...we wait for any sell down is a good buy signal...

For CPO market...correction to below 1500 level...

Regard

Anthony Wong