Kuala Lumpur shares close lower on profit-taking after hitting 1000 pts -
UPDATE 6/11/2006
- Share prices closed lower as profit-taking
continued in the afternoon session in a market consolidating after recently
breaching a significant resistance level, dealers said.
However, investor interest in water-related counters and select
plantation stocks helped prevent a deeper slide, they added.
Some analysts remain positive about the market, saying the composite
index is likely to breach 1,000 points again this week after it broke through
the resistance level for the first time in six years last Friday, hitting 1,
000.06, they said.
The KLCI closed the day down 4.72 points or 0.42 pct at 993.30, off a
high of 999.72.
The FTSE Bursa Malaysia 30-large cap index lost 33.42 points to 6418.83,
while the second board index shed 1.65 points to 86.67.
Losers outnumbered gainers 494 to 281, with 315 stocks unchanged and 234
untraded.
Trading volume was 702.84 mln shares valued at 820.90 mln rgt.
''As expected, the market continued its profit-taking mode in afternoon
trade,'' Cheah King Yoong, head of research of SJ Securities, said.
He added that the market is likely to remain in a correction phase
tomorrow.
''Nevertheless, we maintain our view that the market will breach the
thousand-point mark again this week,'' Cheah said, adding that the bourse is
likely to pick up steam starting mid-week.
He said the benchmark KLCI is likely to trade in the range of 990 to 1,
005 points this week.
A dealer from Kenanga Securities said sentiment remained positive despite
the days' downturn.
''Regional markets are doing well, so the positive factor is still there,
'' he added.
At the close, water business-related stocks and select plantation stocks
helped support the market.
Water counters gained on last week's announcement by Energy, Water and
Communications Minister Lim Keng Yaik that 12 water service-based projects
worth 931 mln rgt are ready to be put up for tender.
Salcon was up 0.08 rgt or 5.52 pct at 1.53 while Puncak gained 0.04 rgt
or 1.38 pct to 2.94.
Plantation stocks Kuchai and United Plantations both gained; Kuchai was
up 0.25 rgt at 51.00 while United gained 0.10 rgt or 1.18 pct to 8.60.
Other plantation counters like IOI Corp fell on profit-taking after
posting significant gains last week.
IOI Corp shed 0.10 rgt to 18.00 while Kuala Lumpur Kepong (KLK) was flat
at 12.50.
The construction sector also came under profit-taking pressure, despite
the launch of the South Johor Economic Region plan.
Gamuda was flat at 4.02 while UEM World Bhd dropped 0.08 rgt or 4.82 pct
to 1.58.
Among the heavyweights, Tenaga, Telekom Malaysia (TM) and Maybank all
fell. Tenaga slipped 0.10 rgt to 10.00, TM lost 0.05 rgt to 8.85 and Maybank
shed 0.10 rgt to 11.20.
Genting contributed to the market's slide with a loss of 1.00 rgt or 3.77
pct at 25.50.
Sugar Bun Corp Bhd was sharply lower after it hit limit-down in the
morning session, as speculative traders chose to lock in earlier gains,
dealers said.
The stock was down 1.08 rgt or 36.7 pct at 1.86 on volume of 22.4 mln
shares.
Sugar-WA fell 0.99 rgt or 41.25 pct to 1.41.
Green Packet Bhd was down 0.02 rgt at 4.32, shedding early gains made on
the broadband networking solutions provider's announcement that its net
profit in the third quarter to September rose 163 pct year-on-year to 21.91
mln rgt.
Muhibbah Engineering (M) Bhd dropped 0.01 rgt to 2.29 rgt after
profit-taking wiped out earlier gains on media reports that its unit won
shipbuilding contracts worth about 142 mln rgt.

For tomorrow...market move up after profit taking today...

For CPO Market...correction to 1600 levels...

Regard

Anthony Wong