Kuala Lumpur shares close at new 9-yr high on general optimism - UPDATE 24/11/2006
- Share prices closed at a fresh nine-year high
on strong buying interest in index-heavyweights on growing optimism about the
market's medium-term prospects, after the government released still robust
third-quarter GDP data despite a slight sequential slowdown, dealers said.
The Kuala Lumpur Composite Index (KLCI) closed up 13.92 points or 1.33
pct at 1,060.43, beating a nine-year high of 1,057 recorded on July 8, 1997.
In the days prior to July 8, 1997, the KLCI was trading at around 1,200
points.
Dealers said the government's report of 5.8 pct growth in gross domestic
product for the third quarter was lower than the revised 6.2 pct expansion
recorded in the second quarter, but it remains better than most people had
expected, with the growth outlook for the whole year of above 5.8 pct seen as
very encouraging.
A slew of strong corporate results reported yesterday provided additional
support, they said.
They added strong follow-through interest from both local and foreign
funds in the afternoon spurred active buying of lower-liners and speculative
counters by retail investors.
The FTSE Bursa Malaysia 30-large cap index gained 113.36 points to 6,814,
while the second board index dropped 0.38 of a point to 90.74.
Gainers outnumbered losers 590 to 278, with 280 stocks unchanged and 175
untraded.
Trading volume was 1.33 bln shares valued at 1.66 bln rgt.
Dealers said buying interest is expected to be sustained for at least the
early part of next week.
"Everybody is abuzz with talk of the market's potential for the
near-to-medium term, as seen from the rising trading volumes," a local
brokerage dealer said.
"It is hard for an investor not to jump into the bandwagon and buy into
the market as the market continues to climb steadly and strongly. This is the
general feeling among investors at the moment, I believe," he added.
Dealers said the better-than-expected GDP figures in the third quarter to
September have helped boost investors' perception that the Malaysian economy
remains resilent and robust.
Among blue chips, Telekom Malaysia rose 0.45 rgt to 9.45, Dutch lady
Milk Industries gained 0.50 rgt to 11.50, and Bursa Malaysia advanced 0.30
rgt to 7.25.
Resorts World Bhd was up 0.80 or 6.35 pct at 13.40 after reporting a 37.6
pct rise in its third-quarter net profit.
Proton Holdings edged up 0.20 rgt to 5.80 on expectations that the
government will decide on a foreign partner for the national carmaker soon.
Shell Refining Co (Malaya) fell 0.10 rgt to 10.30 after reporting a sharp
fall in third-quarter net profit.
Genting rose 2.00 rgt or 7.14 pct to 30.00 on improved third-quarter
results.
PLUS Expressways firmed 0.03 rgt to 2.94 after posting improved results
for the third quarter to September.

For next week...market strong and move toward 1100 points...

For CPO Market...correciton must occur...

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