Kuala Lumpur shares close lower on profit-taking led by plantations UPDATE
30/10/2006- Share prices closed lower on profit-taking
after gains over the last two sessions, with plantation stocks such as IOI
Corp and Kuala Lumpur Kepong leading the way, dealers said.
They said weaker-than-expected US third-quarter GDP data gave investors
an excuse to lock in gains.
The Kuala Lumpur Composite Index closed down 3.83 points or 0.39 pct at
986.07.
The FTSE Bursa Malaysia 30-large cap was down 41.44 points or 0.65 pct at
6,377.10.
Lower liners bucked the trend on speculative interest, with the second
board index rising 1.28 points or 1.47 pct to 88.54.
Gainers outnumbered losers 465 to 332, with 280 stocks unchanged and 240
counters untraded.
Trading volume was 1.04 bln rgt valued at 843.39 mln rgt.
RAM Consultancy Services Sdn Bhd managing director and chief economist
Yeah Kim Leng said the slowdown in US third quarter growth was "slightly
sharper than expected, but not alarming."
"However, we do expect a rebound in the fourth quarter and the US to
achieve a soft-landing," Yeah said.
Data released last Friday showed that US gross domestic product growth
slowed to 1.6 pct in the third quarter, from 2.6 pct in the prior three
months and 5.6 pct in the first quarter of the year.
SJ Securities acting head of research Cheah King Yoong said he believes
the local market has further upside potential ahead of the UMNO general
assembly on November 13.
UMNO refers to the United Malays National Organization, Malaysia's ruling
party.
The analyst said he expects the benchmark index to move within the 979 to
992 points range this week.
Palm Oil producer IOI Corp closed down 0.30 rgt or 1.72 pct at 17.10 after
the company's chairman said the group has no immediate plans to launch a
biodiesel plant.
Unit IOI Properties finished unchanged at 8.40 rgt on news that the IOI
group has no plan at present to take the property arm private.
Another palm oil firm Kuala Lumpur Kepong lost 0.30 rgt or 2.52 pct to 11.
60.
Among heavyweights, Telekom Malaysia fell 0.15 rgt or 1.68 pct at 8.80 and
Tenaga was flat at 10.00 rgt while Maybank gained 0.20 rgt or 1.82 pct at 11.
20.
Sugur Bun was sharply higher on speculative interest, gaining 0.28 rgt or
10 pct to 3.08. The stock exchanged said it has queried the company over
recent sharp rise in its share price and trading volume.
Rubber glove maker Kossan was sharply higher after CIMB Research initiated
coverage of the company with an "outperform" call. The stock was up 0.26 rgt
or 8.02 pct at 3.50.
Timber firm Ta Ann gained 0.20 rgt or 1.98 pct to 10.30 and WTK was
steady at 7.50. Merrill Lynch has initiated coverage of Ta Ann and WTK as a
"buy", saying the two firms are likely to benefit from continued uptrend in
log and plywood prices.
WWE Holdings surged 0.21 rgt or 17.21 pct to 1.43 on attractive
valuations and expectations that the company will be a big beneficiary of
projects arising from the government's ninth Malaysian plan.
Amcorp was up 0.01 rgt or 0.72 pct at 1.39 after Clear Goal Sdn Bhd said
it has extended the closing date for its takeover offer for the former to Nov
14.

For tomorrow...market will bound up after slide correction today...target 1000 points...

For CPO market...beware of correction...

Regard

Anthony Wong