Kuala Lumpur shares close higher on strong corporate earnings - UPDATE 1/11/2006
- Share prices closed higher as the market
digested news of strong corporate earnings and other significant developments
such as Pos Malaysia's cash distribution plans and MISC's move to acquire
additional tankers, dealers said.
The Kuala Lumpur Composite Index (KLCI) closed up 1.04 points or 0.11 pct
at 989.34.
Pos Malaysia announced yesterday it plans to return 1.50 rgt per share in
cash to shareholders.
Investors also welcomed MISC's move to acquire four 107,500 DWT Aframax
tankers from Japan's Tsuneishi Corp for 260 mln usd.
"The market's undertone remains healthy but rangebound trading is likely
to continue in the immediate term," a trader from a local brokerage said.
The FTSE Bursa Malaysia 30-large cap index was down 11.88 pts or 0.19 pct
while the second board index was up 0.54 point or 0.62 pct at 88.28.
Gainers outnumbered losers 422 to 363, with 292 stocks unchanged while
245 counters were untraded.
Trading volume was 769.06 mln shares valued at 868.36 mln rgt.
"We expect the local bourse to continue to trade in a narrow range, while
digesting more incoming corporate earnings reports for the third quarter to
September," a trader from a local brokerage said.
Corporate earnings announced so far have been in line with investors'
expectations, said Choo Swee Kee, chief investment officer of TA Investment
Management.
The fund manager said that in the immediate term, the local bourse is
likely to follow the regional markets, but he added that he sees the KLCI
staying within its current range toward the end of the year.
Pos Malaysia was sharply higher after the company said it will return 1.
50 rgt per share in cash to shareholders. The stock was up 0.19 rgt or 3.83
pct at 5.15.
"After the capital distribution, we expect Pos Malaysia to show higher
return-on-equity on the back of its improved capital structure," said Annuar
Aziz of Credit Suisse First Boston in a research note.
However, the analyst said he has reduced his net profit estimates for Pos
Malaysia by 8-18 pct for financial years 2007 and 2008, mainly due to lower
interest income, after the cash distribution.
TA Ann and Malaysian Pacific Industries were both higher on improved
quarterly results, with TA Ann rising 0.50 rgt or 4.81 pct to 10.90 and
Malaysian Pacific Industries up 0.10 rgt or 1.01 at 10.00.
Bursa Malaysia was higher on its special dividend pay-out of 28 sen per
share. The stock was up 0.15 rgt at 6.10.
MISC gained 0.15 rgt or 1.71 pct, finishing the day at 8.90.
MISC remains a very well-managed liquefied natural gas (LNG) player, said
Edward Ong of Macquarie Research in a research note.
Among heaveweights, energy firm Tenaga was down 0.05 rgt or 0.50 pct at 9.
95 while Maybank was down 0.10 rgt or 0.89 pct at 11.10. Telekom Malaysia was
up 0.05 rgt or 0.57 pct at 8.80,

For tomorrow...market is very strong toward 1000 points...

For CPO correction toward 1600 levels...

Regard

Anthony Wong