Kuala Lumpur shares close higher on anticipation of steady Oct inflation
-UPDATE 22/11/2006
- Share prices closed higher as investors took
positions for the government's announcement of a steady inflation rate for
October, which came in as expected at the end of the day's trade, dealers
said.
Market anticipation of stronger loan growth, as well as the central
bank's more relaxed rules on mergers-and-acquisitions in the banking industry
also helped boost buying sentiment, they added.
The Kuala Lumpur Composite Index (KLCI) was up 7.65 points or 0.73 pct at
1,043.81.
The FTSE Bursa Malaysia 30-large cap index gained 46.79 points to 6,681.
69, while the second board index edged up 0.86 of a point to 90.54.
Gainers outnumbered losers 540 to 334, with 286 stocks unchanged and 165
untraded.
Trading volume was 1.31 bln shares valued at 1.58 bln rgt.
''As expected, the market continued to be bullish in afternoon trade in
anticipation of favorable inflation and interest rates,'' Cheah King Yoong,
head of research at SJ Securities, said.
''The market has been expecting inflation to be stable with any increases
to be marginal, and also it does not see any change in interest rates any
time soon,'' he added.
The statistics department said in a statement released as the market was
closing the consumer price index (CPI) in October rose 3.1 pct year-on-year
but was unchanged from the previous month.
In September, the CPI was up by 3.3 pct year-on-year.
Eon Capital was up 0.35 rgt or 5.69 pct at 6.50, HL Bank added 0.054 rgt
to 5.45 and Public Bank firmed 0.05 rgt to 7.20.
RHB Capital was flat at 1.50 on profit-taking after gaining in morning
trade.
Select blue chips such as Genting, Proton and Maxis also helped boost the
market.
Genting jumped 1.00 rgt or 3.7 pct to 28.00, Proton gained 0.20 rgt or 3.
6 pct to 5.75 while Maxis added 0.40 rgt or 3.03 pct to 13.60.
Elsewhere, Marble supplier Gefung Holdings Bhd closed sharply higher on
its first day of trade on the second board of Bursa Malaysia, compared to its
reference price of 1.00 rgt, dealers said.
Gefung was up 0.75 rgt or 75 pct at 1.75.
Engineering and construction group Ranhill Bhd surged after net profit
for the first quarter to September rose 205 pct year-on-year. The stock
closed up 0.08 rgt or 6.96 pct at 1.23..
The company posted a net profit of 39.83 mln rgt for the first quarter,
compared to 13.05 mln rgt a year earlier.

For tomorrow...market very strong...target 1100 points near term...

For CPO Market...market must correct to 1800 levels...

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