Kuala Lumpur shares close higher -UPDATE 30/11/2006
- Share prices closed higher with mining and
construction stocks contributing the bulk of the gains, dealers said.
Foreign investors built up positions in key blue chips in a market
currently seeing fresh investment inflows after lagging behind its regional
peers, they added.
The Kuala Lumpur Composite Index added 16.06 points or 1.51 pct to 1,080.
66, off a high of 1,086.37 points.
The FTSE Bursa Malaysia 30-large cap index gained 115.12 points or 1.68
pct to 6,950.39 and the second board index rose 1.00 point or 1.1 pct to 91.
56.
The mining sector sub-index was up 19.82 points or 4.19 pct at 493.39 and
the construction sector sub-index was 6.17 points or 3.23 pct higher,
finishing the day at 196.38.
Gainers outnumbered losers 593 to 264, with 297 stocks unchanged and 164
counters untraded. Volume was 1.59 bln shares valued at 2.77 bln rgt.
Cheah King Yoong, head of research at SJ Securities, attributed the
strong gains to an upward revision of the US GDP figures.
''The market perception is that the US economy is not slowing down after
all, and that it is still strong and resilient, and that provided the spark
today,'' the analyst said.
Teoh Kok Lin, managing director of Singular Asset Management, said the
Malaysian market is now back on the radar of foreign fund managers after
lagging behind its regional peers over the past two to three years.
"The local bourse is playing catch-up. In the short term, the equity
market will continue to be liquidity- driven," the fund manager said.
Among index heavyweights, Telekom Malaysia rose 0.30 rgt or 3.24 pct to 9.
55, Tenaga gained 0.10 rgt or 0.92 pct to 11.00 and Maybank was up 0.20 rgt
or 1.75 pct to 11.60.
Genting Bhd was higher following a report that a company unit has been
shortlisted in Malaysia's first open tender to build an independent power
plant in Sabah. The Malaysian conglomerate earlier had said another unit --
Genting Oil Natuna Pte -- had discovered oil at its two offshore exploration
wells in Indonesia. Genting Bhd was up 0.50 rgt or 1.74 pct at 29.25.
Media Prima was sharply higher after saying third quarter to September
earnings rose by 48 pct year-on-year to 27.99 mln rgt. The stock added 0.15
rgt or 5.93 pct to 2.68.
JPMorgan said in a note to clients the media group's results were within
its expected range and it is keeping its "overweight" call on the stock with
a target price pegged at 3.00 rgt.
Sunway City Bhd was higher on a report the company expects a major
earnings contribution from unbilled sales, rising 0.14 rgt or 7.37 pct to 2.
04.
Builders Gamuda and IJM were both higher, with Gamuda gaining 0.26 rgt or
5.63 pct to 4.88 and IJM up 0.25 rgt or 3.52 pct at 7.35.
"Contractors are starting to see new contracts flowing ... now," said
Teoh of Singular, adding that this had been another major factor contributing
to current bullish sentiment.
Dealers said lower liner KBES was down sharply on Bursa Malaysia's query
asking the company to explain the recent surge in its share price and trading
volume. KBES fell 0.035 rgt or 4.22 pct to 0.795.
MBF Corp lost 0.04 rgt or 19.05 pct to 0.17 after Bursa Malaysia rejected
its application to exit from the list of financially troubled companies in
the PN17 category.

For tomorrow...market is very bullish...near term target 1100 points...

For CPO Market...over bough may lead to correction to 1800 levels...

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