Kuala Lumpur shares close broadly lower on extended profit taking - UPDATE 28/11/2006
- Share prices closed broadly lower on extended
profit-taking, coupled with waning interest in the market as investors
refused to take any significant positions ahead of the emergence of fresh
leads,dealers said.
At the close, the Kuala Lumpur composite index (KLCI) fell 11.06 points
or 1.04 pct to 1,057.23, off the day's low of 1,056.72.
The FTSE Bursa Malaysia 30-large cap index lost 80.26 points to 6,783.23
and the second board index eased 0.90 points to 89.94.
Losers outnumbered gainers 682 to 194, with 254 stocks unchanged and 194
untraded.
Trading volume was 1.04 bln shares valued at 1.54 bln rgt.
"Selling pressure gained momentum in the afternoon session on concerns
that Wall Street could dip further," a local brokerage dealer said.
"It's like a chain reaction, investors jumped on the bandwagon when the
market surged and now, when it falls, they seem to be selling briskly," he
added.
He said market sentiment is expected to remain cautious partly due to the
steep fall today and investors' worries that the market has reached its
peak.
"Immediate support remains at 1,051, with a stronger support platform
seen at 1,040. In the broader market, expect call warrants on blue chips to
see (greater) downside volatility after enjoying sharp rallies recently," TA
said.
"However, we remain bullish on plantation stocks, given the strong rally
on crude palm oil (CPO) futures prices towards the 2,000 rgt per ton level,
which should ensure outperformance. Hence, fundamentally sound plantation
counters such as Asiatic and IJM Plantation should extend (gains) after
staging bullish breakouts to record highs yesterday," it added
Among blue chips, Genting dropped 0.75 rgt to 28.50, Resorts World lost 0.
50 rgt to 13.00 and Bursa Malaysia eased 0.35 rgt to 7.15.
Lingkaran Trans Kota Holdings rose 0.10 rgt to 3.00, on reports the
government has approved toll hikes for five highways.
Kinsteel was sharply higher by 0.22 rgt or 18.64 pct at 1.40, after
posting improved third-quarter net profit following the acquisition of
Perwaja Steel Sdn Bhd and Gurun plants in Kedah.
CB Industrial Product Holdings was flat at 4.30 rgt, after profit-taking
erased earlier gains on news that its unit Modipalm Engineering has won a
palm oil mill construction contract worth 26.12 mln rgt.

For today market...tomorrow may continued to correction...

For CPO Market...correction continued to occur...

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