Kuala Lumpur shares close higher led by construction, banking stocks - UPDATE 14/11/2006
- Share prices closed higher led by construction
and banking stocks on expectations that these sectors will be the main
beneficiaries of the government's pump-priming, dealers said.
The Kuala Lumpur Composite Index (KLCI) was up 10.28 points or 1.01 pct
at 1,030.09.
The FTSE Bursa Malaysia 30-large cap index was up 70.94 points or 1.08
pct at 6,629.81 and the second board index was up 0.71 points or 0.80 pct at
89.17.
The construction sector sub-index was sharply higher at 183.45 points, up
4.47 points or 2.50 pct and the financial sector sub-index gained 99.24
points or 1.21 pct to 8,307.19.
Gainers outnumbered losers 604 to 240, with 292 stocks unchanged and 183
untraded.
Trading volume was 1.12 bln shares valued at 1.42 bln rgt.
"We expect the KLCI to trend higher as the local bourse is expected to
continue to play catch-up with its regional peers, which have risen
substantially over the past few months," said a technical analyst from a
local brokerage.
"From a technical point of view, we think the run (in the construction
sector) has just begun and we expect a bit more upside before it pushes back,
" the analyst said.
He said Gamuda is his top pick in the sector based on technical readings.
TA Securities senior chartist Stephen Soo said gains in construction
stocks were driven by expectations that the government will roll out more
projects under its five-year development plan.
Gamuda finished the day at 4.78 rgt, up 0.18 rgt or 3.91 pct.
Both of UEM Builders and UEM World were sharply higher on expectations
that the companies may secure more projects soon.
UEM Builders was up 0.20 rgt or 15.38 pct at 1.50. CIMB Research in a
note said it has a "technical buy" call on the stock.
UEM World gained 0.07 rgt or 4.24 pct to 1.72.
Among key blue chips, Tenaga was up 0.30 rgt or 2.94 pct at 10.50,
Telekom Malaysia gained 0.15 rgt or 1.69 pct to 9.05 and Maybank rose 0.10
rgt or 0.88 pct to 11.50.
Banking stocks were broadly higher driven by spill-over from the
construction sector, with Bumiputra Commerce rising 0.15 rgt or 2.05 pct to 7.
49, RHB Capital up 0.12 rgt or 3.85 pct at 3.24 and Public Bank up 0.10 rgt
or 1.43 pct at 7.10.
AMMB gained 0.03 rgt or 1.05 pct to 2.90 after parent Amcorp said Clear
Goal now owns a 92.66 pct stake in Amcorp and the shares will be de-listed as
a result of the takeover offer.
LFE Corp was sharply higher on contract hopes, rising 0.165 rgt or 55 pct
to 0.465.
The company said it has been awarded contracts worth 63.5 mln rgt for an
airport project in Doha. In addition, unit LFE International has signed a
preliminary agreement with Denmark's Northcom in connection with a 3-year
contract worth about 360 mln rgt, it said.
Mobile phone operator Maxis was higher on the outlook for its Indian
operations. The stock was up 0.20 rgt or 2.26 pct at 9.05.
Credit Suisse said in a note it has upgraded Maxis to an "outperform" and
has raised its price target to 11.20 rgt.
Ranhill Utilities was sharply higher after it announced its first-quarter
results, with the stock rising 0.24 rgt or 18.23 pct to 1.55.

For tomorrow...watch for profit taking...

For CPO Market...correction may go to 1600 levels...

STOCK TO WATCH

SCOMI-CA 7185CA CL 0.06 MOBIF 0042 CL 0.52 MTDINFR 9768 CL 1.10

ANTAH 2739 CL 0.18 JHM 0127 CL 0.55 SUGAR-WA 7637-WA CL 1.00

HOHUP 5169 CL 0.50

Regard

Anthony Wong