Kuala Lumpur shares close higher led by PNB-linked plantation stocks - UPDATE 29/11/2006
- Share prices closed higher led by
PNB-controlled plantation firms Sime Darby, Kumpulan Guthrie and Golden Hope
as merger developments attracted local and foreign interest, dealers said.
The Kuala Lumpur Composite Index (KLCI) gained 7.37 points or 0.70 pct to
1,064.60.
The FTSE Bursa Malaysia 30-large cap index advanced 52.04 points or 0.77
pct at 6,835.27 and the second board index was up 0.62 point or 0.69 pct at
90.56.
Gainers outnumbered losers 528 to 297, with 333 stocks unchanged and 161
counters untraded. Volume was 977.36 mln shares valued at 1.7 bln rgt.
SBB Securities senior investment analyst Ng Jun Sheng said investors were
buying on the dip after yesterday's mild correction.
The market was "very choppy but well supported," he added.
"The market is flush with liquidity and if the external environment
remains stable we should see more upside, (the KLCI) may test the 1,200-point
level next year," the analyst said.
Momentum has been strong, but in order to stage a healthier and more
sustainable uptrend, the market needs to see a more meaningful correction,
dealers said.
Utusan Melayu and New Straits Times Press (NSTP) were both higher after
media reports that the two firms may merge to create the country's largest
media group. Utusan Melayu rose 0.23 rgt or 17.04 pct to 1.58 and NSTP was up
0.25 rgt or 10.25 pct at 2.69.
Media Prima, the major shareholder of NSTP, was also sharply higher,
rising 0.06 rgt or 2.43 pct to 2.53.
Malaysia Airlines was also stronger after reporting its first profit
since it launched its business turnaround plan in February, rising 0.08 rgt
or 1.86 pct at 4.38.
JPMorgan in a note to clients said it believes the national carrier is on
target to beat its 2007 forecast of 1.1 bln rgt of improvements. JPMorgan has
an "overweight" call on Malaysia Airlines, with a target price of 7.00 rgt.
Naluri was lower on weaker third quarter results despite Atlan's offer to
take the company private at 0.75 rgt per share. The stock retreated 0.015 rgt
or 1.56 pct at 0.695.
The company yesterday said its net profit for the third quarter fell to 1.
55 mln rgt from 41.91 mln a year earlier, in the absence of a one-time
exceptional gain which had boosted the comparative figure.
Dutch Lady Milk advanced after saying its third quarter to September net
profit jumped 72 pct to 13.02 mln rgt from 7.57 mln a year earlier. The stock
was up 0.70 rgt or 5.98 pct at 12.40.
CIMB Research in a note said it expects Dutch Lady to deliver total
returns of at least 16 pct, consisting of 11 pct capital appreciation and 5
pct dividend yield. The research house has raised its target price for Dutch
Lady to 13 rgt from 11.80 rgt.
Car dealer Oriental Holdings climbed after reporting strong results for
the third quarter to September, gaining 0.26 rgt or 6.10 pct to 4.52.
Stainless steel fasteners maker Tong Herr Resources was also higher on
improved quarterly results, analysts said. It rose 0.28 rgt or 7.53 pct to 4.
00.
The company said its third quarter to September net profit tripled to 20.
71 mln rgt from 4.88 mln rgt a year earlier.
Hexagon was sharply higher after saying it has secured a visual products
contract worth some 500 mln rgt from a global oil major. The stock was up 0.
32 rgt or 7.17 pct at 4.78.

For tomorrow...market expected to move higher...

For CPO Market...correction toward 1800 levels...

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