Kuala Lumpur shares close firmer UPDATE 11/12/2006
- Share prices closed firmer as gains in blue
chips Genting and unit Resorts World offset profit-taking in the broader
market, The Kuala Lumpur Composite Index (KLCI) closed up 3.11 points or 0.28 pct
at 1,101.70, off a high of 1,110.12.
The FTSE Bursa Malaysia 30-large cap index added 39.44 points or 0.56 pct
to 7,123.21 while the second board index was down 0.25 point or 0.27 pct at
92.80.
Losers outnumbered gainers 592 to 299, with 246 counters unchanged and
176 stocks untraded.
Trading volume was 1.08 bln shares valued at 2.04 bln rgt.
Genting closed up 2.75 rgt or 9.4 pct at 32.00, off an intraday high of
35.75 rgt, while its 57.7 pct-owned unit Resorts World surged 1.00 rgt or 7.
46 pct to 14.40.
JPMorgan said in a note that it prefers Resorts to Genting on improving
fundamentals and cheaper valuations. The investment house said Genting's
prospects in the longer term remain good but the share price may suffer some
volatility as it has risen significantly over the past few weeks.
Call warrants linked to the Genting group were also sharply higher as
retail investors wanted to ride on the positive news via cheaper instruments,
with Genting-CA advancing 0.175 rgt or 17.95 pct to 1.15 and Resorts-CA
climbing 0.17 rgt or 17.17 pct to 1.16.
Govindan said the local bourse is expected to see some mild corrections
this week after recent strong rallies.
Among other leading stocks, Maybank lost 0.10 rgt or 0.84 pct to 11.80
and state-owned shipping firm MISC fell 0.20 rgt or 2.17 pct to 9.00, while
national energy firm Tenaga added 0.10 rgt or 0.87 pct to 11.60 and Telekom
Malaysia rose 0.05 rgt or 0.53 pct to 9.55.
Proton gained 0.10 rgt or 1.61 pct to 6.30 after a report that Germany's
Volkswagen may sign a preliminary agreement to enable it to embark on a due
diligence audit of Proton as part of efforts to strike a partnership.
The report said that Volkswagen is believed to be willing to commit as
much as 2 bln rgt to acquire a 51 pct stake in Proton's manufacturing
operations.
Number forecast operator Berjaya Sports Toto finished the day unchanged
at 4.74 rgt after recouping earlier losses. The company reported on Fridat
that lts second quarter to October net profit fell nearly 25 pct year-on-year
to 71.38 mln rgt.
Select call warrants of key blue chips continued to rise on speculative
interest, with Maxis-CA climbing 0.13 rgt or 6.44 pct to 2.15, Proton-CA
gaining 0.115 rgt or 13.86 pct to 0.945 and Maxis-CB advancing 0.11 rgt or 9.
48 pct to 1.27.
Among losers, gaming and leisure group Tanjong declined 0.30 rgt or 2.10
pct to 14.00 rgt, glove maker Top Glove retreated 0.30 rgt or 2.17 pct to 13.
50 and palm oil producer IOI Corp was down 0.10 rgt or 0.53 pct at 18.80.

For tomorrow...market edge higher after today break...target 1200 points near term...

For CPO Market...lower toward 1800 levels...

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