Kuala Lumpur shares close higher on mergers; profit-taking caps gains - UPDATE 27/11/2006
- Share prices closed higher, with merger and
acquisition news in the gaming, banking and plantation sectors helping to
boost the key index, although mild profit-taking capped the gains, dealers
said.
At the close, the Kuala Lumpur composite index (KLCI) gained 7.86 points
or 0.75 pct to 1,068.29, little changed from the 1,068.80 registered at the
midday break.
The FTSE Bursa Malaysia 30-large cap index gained 49.49 points to 6,863
and the second board index rose 0.10 points to 90.84.
Gainers outnumbered losers 482 to 416, with 266 stocks unchanged and 161
untraded.
Trading volume was 1.39 bln shares valued at 1.80 bln rgt.
''There was some mild profit-taking but that's normal,'' said Lim Chee
Seng, head of research at RHB Research, adding that the market is still very
much trending upwards.
Lim of RHB said the M&A news regarding AMMB, Multi-Purpose Holdings and
the plantation mega merger had boosted the market.
At the close, these merger-related stocks were all higher.
AMMB was up 0.15 rgt or 5.02 pct at 3.14 and Magnum 4D gained 0.01 rgt to
2.94.
As for plantation stocks, IOI Corp was up 0.40 rgt or 2.15 pct at 19.00,
Kuala Lumpur Kepong gained 0.20 rgt to 13.80 and United Plantations increased
0.15 to 9.15 on the back of the M&A activities in the sector.
Investment bank CIMB has proposed the merger of Sime Darby, Kumpulan
Guthrie and Golden Hope Plantations via special purpose vehicle to create the
world's largest listed palm oil business, worth 31.4 bln rgt.
Meanwhile, losses in blue chips such like Genting and some timber stocks
offset the index's gains.
Genting lost 0.75 rgt or 2.5 pct to 29.25, while timber stocks TA Ann
lost 0.25 rgt or 2.78 pct to 8.75 and Lingui lost 0.13 rgt or 7.30 pct to 1.
65.
Among heavyweights, Tenaga and Telekom Malaysia were both flat at 10.80
rgt and 9.45 respectively, while Maybank lost 0.10 rgt to 11.40.
Elsewhere, Lion Diversified Holdings was flat at 6.15 rgt, after
profit-taking erased gains in the morning session following the company's
strong first-quarter results.

For tomorrow...market may ake profit for a higher ground...

For CPO Market...correction must occur...