Kuala Lumpur shares close lower on profit-taking led by Maybank - UPDATE 15/11/2006
- Share prices closed lower on profit-taking led
by Maybank after it posted weaker-than-expected results for the first quarter
to September, dealers said.
Maybank yesterday said its net profit for the first quarter to September
fell 14.4 pct year-on-year to 576 mln rgt.
The Kuala Lumpur Composite Index (KLCI) was down 1.71 points or 0.17 pct
at 1,028.38.
The FTSE Bursa Malaysia 30-large cap index was down 27.84 points or 0.42
pct at 6,601.97 and the second board index was down 0.61 points or 0.68 pct
at 88.56.
Losers outnumbered gainers 536 to 320, with 287 stocks unchanged and 175
untraded.
Trading volume was 969.25 mln shares valued at 1.35 bln rgt.
"I think today's correction won't be a prolonged one. The market will
need to take a breather," said Kenny Yee, head of research at OSK Securities.
"Although the KLCI has surpassed our year-end target for 2006, we are
comfortable with the current level," the analyst said, adding that the KLCI
may touch 1,050 points before the end of the year.
Meanwhile Yee said the construction sector will be major gainer next year.
Despite a possible spillover from the construction sector, Yee said the
banking sector is likely to continue to come under pressure due to increased
foreign competition.
Share price catalysts for banking stocks are expected to be merger and
acquisition activities, he said.
Among key blue chips, Maybank was lower on its weaker-than-expected first
quarter to September results, falling 0.10 rgt or 0.87 pct to 11.40.
Tenaga fell 0.10 rgt or 0.95 pct to 10.40, while Telekom Malaysia gained
0.05 rgt or 0.55 pct to 9.10.
AMMB was down 0.07 rgt or 2.41 pct at 2.83. The bank's results for the
second quarter to September were little changed from a year earlier, but
analysts expect AMMB's share price to be supported by the potential emergence
of a strategic shareholder.
Uchi Technologies was sharply higher on improved third-quarter net
profit, rising 0.20 rgt or 6.29 pct to 3.38. The company said its
third-quarter net profit rose 18.5 pct year-on-year to 22.78 mln rgt.
DRB-Hicom fell 0.02 rgt or 1.32 pct to 1.49 after the company said it is
interested in taking a strategic stake of national auto maker Proton.
Proton lost 0.05 rgt or 0.89 pct to 5.55.
Mobile phone operator Digi was higher at 12.40, rising 0.30 rgt or 2.48
pct, after Communications Minister Lim Keng Yaik told reporters the
government may issue two WiMAX licenses next year. Digi was among 17
telecommunications firms bidding for WiMAX licenses earlier this year.
Rival Maxis gained 0.15 rgt or 1.66 pct to 9.20.
Lower-liners were broadly lower, with PK Resources falling 0.14 rgt or 23.
33 pct to 0.46 and Sugar Bun down 0.23 rgt or 10 pct at 2.07.

For tomorrow...market resume uptrend after correction...

For CPO Market...good profit to sell the market now...

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