KUALA LUMPUR, 21/11/2006-- Share prices closed the day
sharply lower after profit-taking, especially on index heavyweights, continued
in afternoon trade and kept the benchmark index under pressure, dealers said.
Hardest hit were blue chips which posted significant gains from recent
rallies, they added.
The Kuala Lumpur Composite Index (KLCI) was down 7.27 points or 0.7 pct at
1,033.52, off an intraday high of 1,044.33 and a low of 1,029.41.
The FTSE Bursa Malaysia 30-large cap index fell 31.38 points to 6,618.52,
while the second board index slipped 0.38 of a point to 88.64.
Losers outnumbered gainers 581 to 319, with 247 stocks unchanged and 177
untraded.
Trading volume was 1.2 bln shares valued at 1.61 bln rgt.
''The market has overheated, and today it cooled off,'' Eon Capital's head
of research Pong Teng Siew said.
He cautioned that the market is bound to see more of this trend, which
should be more pronounced in coming sessions.
''There will more of such sharp corrections to come,'' he said, adding that
''investors locked in gains today, especially institutional investors, as they
needed to show results to their clients.''
However, he said the bulls have not run out of steam.
''This is not the end of the rally, there is still upside in the market, ''
Pong said, adding that market sentiment continues to be positive.
At the close, Proton Holdings Bhd yielded to profit-taking pressure
following gains made on reports that French car maker PSA Peugeot Citroen will
meet with Malaysian finance ministry officials over a possible bid for the
national car company.
Proton closed down 0.15 rgt at 5.55 after hitting a high of 5.95.
In the latest news, Malaysia's second finance minister Nor Mohamed Yakcop
said PSA Peugeot Citroen is keen to work jointly with ailing auto maker Proton
but Malaysia will ensure the pact does not hurt the local auto industry.
He recently said the government will arrive at a firm decision on Proton's
strategic partner in three months.
Bumiputra-Commerce Holdings Bhd was sharply higher after reporting a 48 pct
rise in its nine months net profit, dealers said.
It rose 0.20 rgt or 2.78 pct to 7.40.
Among the heavyweights, Tenaga was flat at 10.50 while both Maybank and
Telekom Malaysia joined the day's losers, contributing to the KLCI's slide.
Maybank shed 0.20 rgt or 1.75 pct to 11.20 while TM lost 0.20 rgt or 2.15
pct to 9.10.
Other blue chips which fell on profit-taking were Genting, Kuchai and
Tanjong.
Genting lost 0.25 rgt to 27.00; Kuchai shed 0.50 rgt to 52.00, while Tanjong
declined 0.40 rgt or 3.03 pct to 12.80.
Elsewhere, timber stocks were broadly higher on rotational interest after
several timber firms reported strong earnings growth.
WTK Holdings was sharply higher, rising 0.70 rgt or 9.21 pct to 8.30, after
saying its net profit for the third quarter to September rose 235 pct to 46.35
mln rgt.
Timber and plywood product maker Subur Tiasa Bhd gained 0.24 rgt or 4.84 pct
to 5.20.
Lingui Development, also a plywood product maker, advanced 0.27 rgt or 17.
76 pct to 1.79.
In its recently-released first quarter results, Lingui said its net profit
rose sharply to 86.14 mln rgt from 4.56 mln a year earlier.

For tomorrow...market may continue to correction...go get cheap stock...

For CPO Market...as limit-up 100 points today...good change to ready short the market...

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