Kuala Lumpur shares close lower led by plantation, mining stocks - UPDATE
13/11/2006- Share prices closed lower on profit-taking with
plantation and mining stocks contributing the bulk of the losses, dealers
said.
"The uptrend seen last week may not be sustainable and further downside
is likely when the UMNO (ruling United Malays National Organization) assembly
ends on Friday," said a dealer from a local brokerage.
The Kuala Lumpur Composite Index (KLCI) was down 2.49 points or 0.24 pct
at 1,019.81.
The FTSE Bursa Malaysia 30-large cap index was down 16.32 points or 0.25
pct at 6,558.87, while the second board index was up 0.24 points or 0.27 pct
at 88.46 points.
The plantation sector sub-index was down 58.82 points or 1.46 pct at 3,
978.75 and the mining sector sub-index was down 6.61 points or 1.42 pct at
460.35.
Trading volume was 911.11 mln shares valued at 1.08 bln rgt.
Losers outnumbered gainers 450 to 371, with 296 stocks unchanged and 210
untraded.
"If this can be considered as a bull market, it is definitely a different
species from the one we had in the early 1990s," said a senior technical
analyst from a local brokerage.
He also said the local bourse is likely to take a breather for now, given
its near-term "overbought" technical reading.
Plantation stocks were sharply lower on profit-taking given their
demanding valuations, dealers said.
IOI Corp was down 0.30 rgt or 1.61 pct at 18.30, Kuala Lumpur Kepong fell
0.50 rgt or 3.65 pct to 13.20, Batu Kawan lost 0.60 rgt or 5.66 pct to 10.00
and Kuchai was down 0.75 rgt or 1.42 pct at 52.25.
Oil and gas firm KNM Group fell 0.10 rgt or 1.47 pct to 6.70 and Muhibbah
was down 0.06 rgt or 2.65 pct at 2.20.
Selective banking stocks were sharply higher on rotational interest, with
Hong Leong Bank rising 0.15 rgt or 2.80 pct to 5.50 and Bumiputra-Commerce up
0.20 rgt or 2.82 pct at 7.30.
Rashid Hussain was sharply higher on renewed merger and acquisition
speculation. The stock was up 0.11 rgt or 7.64 pct at 1.55.
Hwang-DBS Vickers Research said in a note it has upgraded the banking
sector to "overweight" from "neutral," citing undemanding valuations compared
with its regional counterparts.
PA Resources was sharply higher on speculative interest, finishing the
day up 0.255 rgt or 25.89 pct at 1.24 on volume of 19.82 mln shares.
Bursa Malaysia said it has asked PA Resources about the sharp rise in its
share price and trading volume. It has also advised investors to exercize
caution.
Sugar Bun gained 0.16 rgt or 8.79 pct to 1.98.
Construction group Gamuda was sharply higher after several brokerages,
including JPMorgan and CIMB research, raised their recommendations on the
stock. Gamuda was up 0.14 rgt or 3.14 pct at 4.60.
Among heavyweight stocks, Tenaga fell 0.30 rgt or 2.86 pct to 10.20,
Telekom Malaysia lost 0.15 rgt or 1.66 pct to 8.90, while Maybank was steady
at 11.40 rgt.

For tomorrow...market may continued correction to build a base...

For CPO Market...selling signal is on...toward 1600 levels...


STOCK TO WATCH

JHM 0127 CL 0.45 MBSB 1171 CL 0.75 MAYBANK-CB 1155CB CL 0.50

COCOLND 7205 CL 0.60 VINTAGE 7595 CL 0.55 DAYA 0091 CL 0.25

PA 7225 CL 0.90 KEURO 3565 CL 0.40 FRONTKN 0128 CL 0.60