Friday, September 29, 2006

Kuala Lumpur shares close slightly lower on profit-taking in blue chips -
UPDATE 29/9/2006
- Share prices closed slightly lower on
profit-taking in selected key blue chips led by heavyweight Tenaga Nasional,
as local funds consolidated their positions due to expensive market
valuations, dealers said.
They said the market is expected to consolidate further next week on
extended selling of selected blue chips by local funds.
The Kuala Lumpur Composite Index (KLCI) was down 1.33 points or 0.14 pct
at 967.55. For the week, the KLCI gained 1.77 points or 0.18 pct.
The FTSE Bursa Malaysia 30 large cap-index fell 15.22 points to 6,260.38,
while the second board index eased 0.33 points to 82.85 .
Gainers outnumbered losers however 358 to 319, with 318 stocks unchanged
and 320 counters untraded.
Trading volume was 415.37 mln shares, valued at 904.22 mln rgt.
"The market just cannot seem to break the 970 psychological resistance
level," a local brokerage dealer said.
He said the key index seems to have peaked at the 970 points level and is
expected to trend downwards in the near future ahead of the emergence of
fresh leads.
"Local funds are having a difficult time pushing the index above the 970
points level, as investors view market valuations are getting expensive
especially key blue chips like Tenaga, IOI Corp and Malayan Banking," he
added.
Another dealer said investors will be watching out for the country's
trade figures for August which are expected to be released early next week.
"The market is generally experiencing profit-taking after edging up in
the past few trading days, with average volumes of over 450 mln shares," a
local brokerage dealer said.
He said Tenaga, which has the largest weighting on the KLCI, dragged down
the broader market, with selling pressure increasing after the stock's soft
close yesterday following days of strong gains, which have made the stock
expensive.
The relatively sharp fall in Tenaga made investors jittery, he said.
"Buying interest from local funds is starting to wane again and broader
market valuations are now too high," he added.
TA Securities said in a note to clients that it expects strong selling
pressure to limit the market's upside as the KLCI is currently trading at
fresh six-year highs.
TA added that strong rebounds by RHB and Utama are likely to encourage
profit-taking, given their overbought technical momentum indicators.
Among blue chips, Tenaga Nasional was down 0.15 rgt at 9.70 and Malayan
Banking dropped 0.10 rgt to 11.20, while Telekom Malaysia was flat at 9.15.
Lion Diversified Holdings gained 0.19 rgt to 5.15, after the company said
it plans to return its entire holdings in Amalgamated Containers (ACB) to
shareholders.
ACB lost 0.02 rgt to 0.795 after gaining earlier following the statement
by major shareholder Lion Diversified.
DiGi.com advanced 0.30 rgt to 12.50, after the company fixed the
entitlement date for its capital repayment of 0.60 rgt per share on Oct 16.
Kim Loong Resources was up 0.01 rgt at 1.41, after the company reported a
net profit of 4.16 mln rgt for the second quarter to July, up 81.7 pct
year-on-year.
Jaya Tiasa Holdings rose 0.05 rgt to 2.59, after the timber trading firm
said its net profit for the first quarter to July grew 58.7 pct year-on-year
to 22.49 mln rgt.
Malaysian Resources Corp gained 0.02 rgt to 0.78, after the construction
and property group said its associate firm has been awarded contracts worth
about 391.4 mln rgt in Dubai.

For next week...market will trade higher...

For CPO market...market will trend down to 1500 poins...

Regard

Anthony Wong

Thursday, September 28, 2006

Kuala Lumpur shares close firmer on local fund interest in blue chips UPDATE 28/9/2006
- Share prices closed firmer led by selected blue
chips on interest from local funds, dealers said.
The Kuala Lumpur Composite Index (KLCI) was up 2.56 points or 0.26 pct at
968.88, off its intraday high of 970.79 in morning trade.
The FTSE Bursa Malaysia 30 large cap-index gained 25.58 points to 6,275.
60, while the second board index eased 0.07 points to 83.18.
Gainers outnumbered losers 329 to 317, with 371 stocks unchanged and 298
counters untraded.
Trading volume was 490.16 mln shares valued 702.13 mln rgt.
"Local funds seem to be finally coming back in the market, with strong
plays in blue chips especially big capitalized stocks like Malayan Banking
and Genting," a local brokerage dealer said.
He said even though this seems to be a good development for the market,
he doubts the gains can be sustained as profit-taking is expected to cap
gains above the 970 points level.
"If follow-through buying from local funds fails to materialize in the
next few days, then I believe that profit-taking could likely push the index
back down to 960 points; and if this (support level) is broken, it could fall
to 955 points followed by 950 points," he added.
Meanwhile, SJ Asset Management Sdn Bhd chief investment officer Meor
Khairi Bazid said the market remains generally weighed down by "a still hazy
outlook for global economic health ... with the US still possibly facing a
hard landing. Added to that, China could also be hurt by lower exports."
TA Securities said in a note to clients that technical factors show that
a cautious market undertone will continue to cap the market's upside in the
near term, as domestic leads remain uninspiring.
However, the brokerage said that while institutional investors remain
largely sidelined, pockets of speculative plays by day traders in selected
lower liners should continue to provide some trading highlights.
Among blue chips, Malayan Banking was up 0.10 rgt at 11.30, IOI Corp
gained 0.30 rgt to 16.30, while Tenaga Nasional fell 0.05 rgt to 9.85.
M3nergy was flat at 1.92, after profit-taking erased earlier gains on a
media report that the company has submitted a bid for an oil and gas project
in India.
Hwang-DBS (Malaysia) advanced 0.03 rgt to 1.48, after the stockbroking
firm posted a sharp rise in net profit for the fourth quarter to July.
TA Enterprise was up 0.03 rgt at 0.68, after the company posted a sharp
increase in its net profit for the second quarter to July.
Juan Kuang (M) Industrial gained 0.075 rgt or 7.61 pct to 1.06, after the
company said its net profit for the second quarter to July rose 66.97 pct to
5.41 mln rgt
Mentiga Corp surged 200 pct or 0.44 rgt to 0.66, after Bursa Malaysia
lifted trading restrictions, such as the requirement for full payment prior
to purchases.
Proton Holdings firmed 0.12 rgt to 4.98 on a report that the national car
maker may start assembling Chery vehicles next year, once the company
concludes talks with Alado Bumi.

For omorrow...KLOFF may trade higher...

For CPO market...market down trend resume...target 1500...

Regard

Anthony Wong

Wednesday, September 27, 2006

Kuala Lumpur shares close flat as export worries negate Wall St-led gains
UPDATE 27/9/2006
- Share prices closed flat as Wall Street's sharp
overnight gains provided little support to a market worried that the
country's exports might be negatively affected by a slowing global economy,
dealers said.
Trading remained quiet in the absence of buying support from local funds
and the usual speculative interest from retail investors, who have taken a
"wait-and-see approach" to the market, they said.
The Kuala Lumpur Composite Index (KLCI) was up a slight 0.66 points at
966.32,
having firmed from 965.91at the morning close and 965.69 at opening.
The FTSE Bursa Malaysia 30 large cap index gained 4.83 points to 6,250.
02 , while the second board index eased 0.17 to 83.25.
Gainers outnumbered losers 333 to 332, with 359 stocks unchanged and 289
counters untraded.
Trading volume was 445.18 mln shares valued 722.93 mln rgt.
"Market activity, as expected, remained dull and unattractive to
investors who are basically playing it safe with a wait-and-see stance," a
local brokerage dealer said.
He said immediate support remained weak due to waning buying interest
from local funds, which were consolidating their market positions.
"Investors are just frustrated by the lack of newsflow and slow-moving
progress in government spending. Everthing seems to be on low gear," he
added.
EON Cap Securities head of research Pong Teng Siew said the market lacked
strong themes that could lift sentiment and generate vibrant buying activity.
He said concerns over Malaysian exports being negatively affected by
slowing global economic growth, especially in markets such as the United
States, were putting a damper on buying activity.
Pong said Malaysia's August trade figures, which are due for release by
the end of the month, are expected to show only modest export growth, in line
with slowing electronic and electrical products exports and lower prices of
petroleum-related exports due to weaker crude oil prices.
"The worry is that the United States, the country's biggest export
market, could be in for a hard landing rather than a soft landing. It is
always very difficult to engineer a soft landing. It would be quite bad for
Malaysia if the United States were to experience a hard landing, with exports
badly affected," Pong added
Mayban Securities, in a note to clients, said the KLCI is expected to
trade within a limited range for the rest of the week, with a slight downside
bias, as technical indicators are already trending deeper into the overbought
region.
"This week, the KLCI is expected to trend within the 955-970-point range.
With momentum easing ... the trajectory of the KLCI would be limited at 968.
Again, the finance, plantation and transportation stocks are expected to be
actively traded," it added.
Mayban said however, Malaysia Airlines, Air Asia and MISC, are expected
to trend higher this week to take advantage of lower crude oil prices.
"The usual suspect lower-liners are expected to continue their (downward
drift) as the technical indicators have yet to initiate any positive
crossovers. Banking stocks are expected to end the week positively despite
news of the abolition of over-the-counter charges yesterday," Mayban added.
Among blue chips, Malayan Banking was down 0.10 rgt at 11.20, IOI Corp
fell 0.10 rgt to 16.00, and Tenaga Nasional was up 0.05 rgt at 9.90.
Sime Engineering Services gained 0.01 rgt to 0.71 on bargain-hunting
after it fell earlier when the company said it was currently not in talks to
acquire shares in Ramunia Holdings Bhd.
Bina Darulaman advanced 0.055 rgt to 0.865 after the company said it has
been awarded a 70 mln rgt construction contract by the Kedah state government.
VS Industry Bhd was uo 0.02 rgt at 1.61 after reporting a sharp rise in
its net profit for the year to July.
Talam Corp rose 0.005 rgt to 0.11 after the property firm said its net
loss for the first quarter to July had narrowed from a year earlier.

For tomorrow...if see market down is a good long signal...

For CPO market...market will trend down to 1500 level...

Regard

Anthony Wong

Tuesday, September 26, 2006

Kuala Lumpur shares close flat ahead of central bank interest rate move -
UPDATE 26/9/2006
- Share prices closed flat as investors kept to
the sidelines to await the central bank's policy announcement on interest
rates due after the market close, dealers said.
The market has largely factored in the likelihood of the key central bank
interest rate being left unchanged, accounting for the slightly positive bias
shown by the benchmark index, although trading remained quiet, they said.
Some support came from Wall Street's modest overnight gains after Dallas
Federal Reserve president Richard Fisher suggested inflation would be
dampened by a slowing economy and said that while the housing and auto
sectors are economic weak points, the rest of the US economy is doing
"extremely well."
The Kuala Lumpur Composite Index (KLCI) was up 0.22 points or 0.02 pct at
965.66.
The FTSE Bursa Malaysia 30 large cap index gained 2.59 points to 6,245.19.
The second board index fell 0.21 points to 83.42. Trading volume was 389.
77 mln shares, valued at 625.96 mln rgt.
Losers outnumbered gainers 340 to 311, with 372 counters unchanged and
290 stocks untraded.
"The market seems to have lost its luster for the moment, with investors
taking a back seat on equities due to lack of fresh leads and concerns over
slowing global economic growth," a local brokerage dealer said.
"Everybody was just waiting for the others to make a move in the market;
it's a wait-and-see kind of stance as investors were generally cautious..."
he said.
The dealer said investors were generally looking for more news about
government projects to pump-prime the economy as overseas prospects seemed
rather bleak at the moment.
TA Securities, in a note to clients, said the inability of the market to
extend last week's advance implies weak upside momentum as buyers failed to
follow through.
It said lower liners stayed under profit-taking pressure, and short-term
momentum indicators suggest further consolidation for stocks, which is
required for them to build up new support.
Among blue chips, Tenaga Nasional was down 0.05 rgt at 9.85, Malayan
Banking was flat at 11.30, and Telekom Malaysia eased 0.10 rgt to 9.05.
Island & Peninsular rose 0.02 rgt to 1.31after the property and
plantation group posted a sharp increase in its net profit for the second
quarter to July.
Berjaya Land was up 0.015 rgt at 0.545 despite the property firm posting
a sharp fall in its net profit for the first quarter to July.
Genting advanced 0.30 rgt to 23.90 after it said its oil and gas unit had
discovered dry gas and gas condensate off West Natuna in Indonesia.
Merge Energy was higher by 0.045 rgt or 9.57 pct at 0.515 after the
company reported a sharp rise in its net profit for the second quarter to July
REDtone International Bhd was up 0.015 rgt at 0.515 after the company
said it may consider listing overseas its international roaming operations in
the next 2-3 years
Puncak Niaga Holdings firmed 0.03 rgt to 2.85 on expectations that the
government may approve a water tariff hike soon.
At the close, the ringgit was quoted at 3.6805/6855 to the dollar, from
yesterday's close of 3.6780/6820.

For tomorow...any up is a good sell signal...

CPO market is trend up...if low is good long...

Regard

Anhony Wong

Monday, September 25, 2006

Kuala Lumpur shares close flat ahead of central bank policy meeting - UPDATE 25/9/2006
- Share prices closed little changed as investors
shunned any strong trading positions amid a lack of leads and ahead of the
central bank's policy meeting tomorrow, dealers said.
They said even local funds, which had supported select blue chips when
the market was generally weak, chose to stay on the sidelines.
The Kuala Lumpur Composite Index (KLCI) was up 0.21 points at 965.44.
The FTSE Bursa Malaysia 30 large cap index was down 1.15 points at 6,242.
60.
The second board index fell 0.23 points to 83.63.
Trading volume was 408.05 mln shares, valued at 590.43 mln rgt.
Losers outnumbered gainers 363 to 295, with 339 counters unchanged and
316 stocks untraded.
"Market sentiment remained fragile, with technical indicators pointing to
more consolidation in the near term," a local brokerage dealer said.
He said concerns over a slowing global economy further dampened
sentiment, making investors more cautious about making any moves.
"The waning buying interest from local funds in blue chips also helped
inhibit retail investor participation in trading in lower-liners, thus
reducing the trading volume -- which is one of the main factors for a strong
market," he added.
Mayban Securities, in a note to clients, said although crude oil prices
closed lower last week, concerns about US economic growth, as well as the
military coup in Thailand, will continue to affect market sentiment for this
week.
The brokerage said aviation counters such as Malaysia Airlines and
AirAsia may draw some buying interest on any weakness in crude oil prices,
but any gains would be capped by profit-taking in the succeeding sessions as
technical indicators would point to the sector having reached expensive
levels.
Mayban added it still favors blue chips over lower-liners at the moment.
"Choppy trading is to be expected and traders should reduce exposure when
the KLCI trends toward the 970-resistance level," the brokerage said.
Among blue chips, Genting was down 0.20 rgt at 23.60, Telekom Malaysia
was steady at 9.15, and Malayan Banking was flat at 11.30.
Road Builder (Malaysia) Holdings was down 0.03 rgt at 2.61 despite news
that it has won a 348 mln rgt railway contract from the government.
Sime Engineering Services rose 0.01 rgt to 1.45 on a report that the
company may acquire oil-and-gas firm Ramunia Holdings Bhd for 700 mln rgt or
1.20 rgt per share.
Puncak Niaga Holdings fell 0.13 rgt to 2.82 on profit-taking after the
stock rose sharply last week on talk of a capital repayment scheme.
Ramunia Holdings dropped 0.08 rgt to 1.30 on speculation that Sime
Engineering Services Bhd may acquire a 50.8 pct stake in the company for 1.20
rgt per share or for a total of 700 mln rgt.
Scientex Inc was up 0.12 rgt at 2.92 after the company declared a 15 sen
final dividend for the fourth quarter to July.

For tomorow...market is expecting to move up further to 970 points...

For CPO market...maintain downtrend...look for change to rebound...

Regard

Anthony Wong

Friday, September 22, 2006

Kuala Lumpur shares close flat ahead of central bank policy meeting - UPDATE 22/9/2006
- Share prices close little changed ahead of Bank
Negara Malaysia's decision on interest rates at a meeting next Tuesday,
dealers said.
They said the central bank is expected to keep its key rate unchanged at
3.50 pct after the government reported a mild increase in inflation for
August.
The market narrowed its losses from the morning session, when Tenaga led
the fall following reports the energy/water minister warned against
speculating on the renegotiations of power purchase agreements with the
independent power producers.
The Kuala Lumpur Composite Index (KLCI) closed down 0.85 points or 0.09
pct at 965.23, off a low of 962.69 points. For the week, the KLCI was up 3.24
points or 0.65 pct.
The FTSE Bursa Malaysia 30 large cap index in today's trade was up 0.85
points or 0.01 pct at 6,243.75. The second board index was up 0.33 points or
0.39 pct at 83.86.
Trading volume was 456.928 mln shares, valued at 685.09 mln rgt.
Gainers outnumbered losers 364 to 324, with 339 counters unchanged and
286 stocks untraded.
Bank Negara Malaysia's monetary policy committee will meet for the
seventh time this year next Tuesday (Sept 26) to decide on interest rates,
with analysts expecting the bank to hold its key rate steady at 3.50 pct.
"Expectations for another pause in rake hikes had been factored in by the
market," Teoh Cheng Guan, head of retail research at K&N Kenanga said.
Meanwhile, national energy firm Tenaga ended the day down 0.10 rgt at 10.
00 after it hit an intraday low of 9.90 rgt.
Minister of Energy, Water and Communications, Lim Keng Yaik, reportedly
warned all parties involved to stop from speculating on the renegotiations of
power purchase agreements with independent power producers (IPPs).
He was quoted by the New Straits Times as saying: "We have not finalized
anything yet. So please do not speculate and send false information to
investors causing share prices to go up and down like a yo-yo."
The minister also said that the government hopes to wrap up talks on
price reviews with the IPPs by year-end.
"I don't think the negotiations can be concluded by the end of this year,
" said a power sector analyst from a local brokerage.
"My fair value for Tenaga is rather conservative as I have put in a
higher forecast for its gas costs," the analyst said, adding that he expects
Tenaga will have to pay 20 pct more for natural gas when the energy firm
renews its contract with Petronas.
Teoh of K&N said he expects the benchmark KLCI to hold up well into the
fourth quarter, supported by window dressing by local institutional funds.
Banking stocks ended the day mixed after the government's move to ban
banks from charging fees for over-the-counters services, with Maybank rising
0.10 rgt or 0.89 pct to 11.30, while Bumiputra-Commerce Holdings Bhd was down
0.05 rgt at 6.40 and Public Bank down 0.05 rgt at 6.75.
SPSetia was unchanged at 3.78 rgt despite the property firm posted a
sharp rise in its net profit for the third quarter to July.
"Investors were unwilling to pay for a higher price for SP Setia as its
earnings are seen peaking at the currrent level," an analyst from a local
brokerage said.
AirAsia rose 0.01 rgt to 1.62 after the budget carrrier's chief executive
officer Tony Fernandes assured investors that AirAsia sees no disruption in
its operation in Thailand.
Malaysia Airlines was sharply higher despite crude oil prices have
rebounded from six months low, rising 0.20 rgt or 6.37 pct to 3.34.
Rashid Hussain Bhd (RHB) and Utama Banking Group were both higher on
continued talk that the Employees Provident Fund here may offer a higher
price for Utama's entire stake in RHB.
RHB rose 0.15 rgt or 11.28 pct to 1.48 and Utama gained 0.11 rgt or 9.91
pct to 1.22.

For KLOFF next week...any uptrend is a good sell signal...

For CPO market...uptrend is formed...target 1560 poins...

Regard

Anthony Wong

Thursday, September 21, 2006



Kuala Lumpur shares close higher on rate hopes after Aug CPI data - UPDATE 21/9/2006
(- Share prices closed higher as August inflation
data gave rise to hopes that the central bank will again keep its key rate
unchanged at its policy meeting next week, dealers said.
The government announced after market close yesterday that consumer price
index (CPI) rose 3.3 pct year-on-year in August, slowing from a growth of 4.1
pct in July. On a month-on-month basis the CPI fell 0.1 pct in August.
The Kuala Lumpur Composite Index (KLCI) closed up 6.46 points or 0.67 pct
at 966.08.
The FTSE Bursa Malaysia 30-large cap index was up 35.93 points or 0.58
pct at 6,242.90 while the second board index was up 0.21 point or 0.25 pct at
83.53.
Trading volume was 459.557 mln shares valued 982.934 mln rgt.
Gainers outnumbered losers 389 to 258, with 341 stocks unchanged and 323
counters untraded.
Shin Kao Jack, a technical analyst at OSK Securities, said the technical
outlook for the immediate term remains bullish.
The benchmark index may move back to the previous peak of 970 points, he
said, adding that on the downside he sees strong support at the 957 level.
Some traders have expressed the view that it is still a "two-tier"
market, with a few heavyweight stocks supporting the benchmark index while
many lower liners continue to come under selling pressure.
Meanwhile, analysts say that foreign funds have begun considering
shifting more funds into Malaysia following the coup in Thailand.
"Foreign funds have begun considering buying into Malaysian stocks as the
Thai market looks uncertain due to the political turmoil there," said S
Sharath, an analyst at MIDF Sisma Securities.
Among key blue chips, Tenaga rose sharply after several foreign
brokerages upgraded their ratings on the company. The stock closed up 0.20
rgt or 2.02 pct at 10.10.
Telekom Malaysia was up 0.05 rgt or 0.55 pct at 9.10 and Maybank was
steady at 11.20.
Casino operator Genting was higher on bargain-hunting, finishing up 0.40
rgt or 1.72 pct at 23.70. BAT (Malaysia) added 0.50 rgt or 1.19 pct to 42.5.
Amcorp Group fell 0.01 rgt or 0.75 pct to 1.33 on profit-taking.
OSR Brands fell 0.16 rgt or 4.30 pct to 3.56. The company had announced
earlier that it is making a mandatory general offer for KFC Holdings at 4.94
rgt per share. KFC closed unchanged at 4.94 rgt.
Palm oil producers IOI Corp was down 0.10 rgt or 0.63 pct at 15.80 and
Kulim was down 0.16 rgt or 3.64 pct at 4.24.
Oil and gas firm Petra Perdana fell 0.02 rgt or 3.34 after crude oil
prices fell further overnight. Petronas Gas was unchanged at 8.75.

For tomorow...ready to short the market if market move higher...

For CPO market...market is going to move toward 1550 points...

Regard

Anthony Wong

Wednesday, September 20, 2006

Kuala Lumpur shares close lower on Thai coup, Fed caution - UPDATE 20/9/2006
- Share prices closed lower as the military coup
in Thailand gave investors an excuse to lock in profits, dealers said.
They said the market is also waiting for the outcome of the US Federal
Reserve meeting tonight.
The Kuala Lumpur Composite Index (KLCI) closed down 3.20 points or 0.33
pct at 959.62.
The FTSE Bursa Malaysia 30-large cap index was down 25.36 points or 0.41
pct at 6,206.97 and the second board index lost 0.14 point or 0.17 pct at 83.
32.
Trading volume was 427.745 mln shares valued at 858.323 mln rgt.
Losers outnumbered gainers 408 to 248, with 343 stocks unchanged and 312
counters untraded.
Ngu Chie Kieng, head of business development and strategic planning at TA
Securities, said he believes the political instability in Thailand is going
to be only temporary.
At the same time, he said the Malaysian equity market may benefit from
the Thai turmoil as Malaysia will appear to be more stable and conducive for
investments.
Vincent Khoo, head of research at Hwang-DBS Vickers, said the seizure of
power by the Thai military will not trigger any re-rating on Malaysian
companies which have businesses in Thailand, at least for now.
A local fund manager said that "investors have been staying on the
sidelines mainly because the US Federal Reserve meeting tonight." He said the
market generally expects the Fed to keep its key rate steady at 5.25 pct
tonight.
Among key blue chips, Tenaga was higher as investors cheered the
state-owned firm's decision to scrap a share placement exercise. The stock
was up 0.20 rgt or 2.06 pct at 9.90.
Maybank was steady at 11.20 and Telekom Malaysia was unchanged at 9.05
rgt.
Casino operator Genting fell 0.70 rgt or 2.92 pct to 23.30 and Resorts
was down 0.30 rgt or 2.60 pct at 11.20.
Palm oil producer IOI Corp lost 0.50 rgt or 3.05 pct to 15.90 and its
property arm IOI Properties fell 0.25 rgt or 2.98 pct to 8.15.
National car maker proton fell 0.12 rgt or 2.41 pct to 4.86 and DRB-Hicom
was down 0.01 rgt at 1.41 after news that Malaysia's car sales fell 5.68 pct
year-on-year in August to 35,297 units.
Lion Forest Industries was sharply lower as profit-taking erased earlier
gains following news that the company is raising the ratio of its proposed
capital repayment to 2.00 rgt per share from 1.20 rgt. The stock ended down 0.
09 rgt or 2.96 pct at 2.95.
Malaysia Airlines was steady at 3.10 rgt after the national carrier said
there have been no disruptions in its flights to Bangkok and Phuket so far.
AirAsia was down 0.01 rgt or 0.64 pct at 1.55.
Gamuda was unchanged at 3.98 rgt despite the Thai coup. The construction
firm has recently won a power plant project in Thailand.
Amcorp Group was higher after major shareholder Azman Hashim made a
second attempt to take the company private. The stock was up 0.06 rgt or 4.69
pct at 1.34.
Speculative lower liners rebounded from yesterday's falls, with Iris Corp
rising 0.015 rgt or 7.14 pct to 0.225 and Mobif up 0.005 rgt or 0.97 pct at 0.
52.

For tomorow...buy if market fall down...

For CPO ...market will rebound back to 1560 points...

Regard

Anthony Wong

Tuesday, September 19, 2006



Kuala Lumpur shares close lower on caution ahead of Aug CPI data - UPDATE 19/9/2006
- Share prices closed lower as growing investor
caution put more pressure on stocks in afternoon trade ahead of the release
of Malaysia's August consumer price data and the US Federal Reserve's
monetary policy meeting tomorrow, dealers said.
They added that investor sentiment was also dampened by sharp falls seen
in some lower-liners.
The Kuala Lumpur Composite Index (KLCI) was down 2.73 points or 0.28 pct
at 962.82, while the FTSE Bursa Malaysia 30-large cap index slipped 16.62
points or 0.27 pct to 6,232.33.
The second board index shed 0.62 points or 0.74 pct to 83.46.
Trading volume was 519.01 mln shares valued at 906.70 mln rgt.
Losers outnumbered gainers 463 to 229, with 332 stocks unchanged and 295
counters untraded.
Stephen Soo, senior technical analyst at TA Securities, said sentiment
remained weak as investors awaited the release tomorrow of Malaysi's August
consumer price data and the US Federal Reserve's interest rate policy in this
week's meeting.
Lower-liners were hardest hit by selling pressure amid market talk that a
US hedge fund is currently under investigation by regulators after its
investment in some Malaysian stocks incurred huge losses.
"I think the benchmark index will take a while to recover; the upside is
likely to be capped at 970 points and support level is seen at 950," Soo
said.
"Sentiment is improving but only on certain blue chips and
government-linked companies (GLCs)," said Cheah King Yoong, acting head of
research at SJ Securities.
He said investors are expecting the GLCs to deliver tangible benefits to
their shareholders and stakeholders next year as outlined by the government
earlier.
The analyst said his house still holds on to its year-end target for the
KLCI of 960 points, given the economy is likely to grow slower in the fourth
quarter.
Among key blue chips, Tenaga was higher on positive earnings outlook,
rising 0.10 rgt or 1.04 pct to 9.70. Maybank was down 0.10 rgt at 11.20 and
Telekom Malaysia was down 0.05 rgt at 9.05.
Casino operator Genting was down 0.50 rgt or 2.04 pct at 24.00 and BAT
(Malaysia) lost 0.50 rgt or 1.18 pct to 41.75.
Speculative lower-liners Iris Corp fell 0.05 rgt or 19.23 pct to 0.21 and
Mobif dropped 0.10 rgt or 16.26 pct to 0.515.
National car maker Proton was down 0.02 rgt at 4.98 and Edaran Otomobil
Nasional Bhd was up 0.01 rgt at 1.96, following the release of data from an
industry body showing Malaysia's car sales in August fell 5.68 pct
year-on-year to 35,297 vehicles.
In the first eight months, car sales fell 5.85 pct to 254,980 vehicles
from 270,830 units a year earlier, Malaysian Automotive Association (MAA)
said in a statement.
UMW, a major shareholder of compact car maker Perodua, was up 0.10 rgt or
1.39 pct at 7.30 while MBM Resources, also a shareholder of Perodua, lost 0.
04 rgt or 1.42 pct to 2.78.
DRB-Hicom was lower after its early gains were wiped out by profit-taking
in the afternoon. It closed down 0.01 rgt at 1.44.
The company said yesterday it has signed a memorandum of agreement to
form an equity tie-up with General Motors (GM) to distribute GM vehicles in
Malaysia.

For tomorrow...technical rebound may occur...

For CPO market may slope down to 1500...

Regard

Anthony Wong

Monday, September 18, 2006

Kuala Lumpur shares close higher on easing rate fears, led by Tenaga - UPDATE 18/9/2006
- Share prices closed higher as investor
sentiment turned positive, wiping out early losses, due to expectations that
the US Fed will keep its key rate unchanged at its upcoming policy meeting
this week, dealers said.
The benchmark index was also supported by sharp gains in national
utilities firm Tenaga on hopes that its renegotiations over power purchase
agreements with independent power producers may be concluded soon, favorably
for the state-owned company, they said.
The Kuala Lumpur Composite Index (KLCI) was up 6.56 points or 0.68 pct at
965.55.
The FTSE Bursa Malaysia 30-large cap index was up 37.00 points or 0.60
pct at 6,248.95 and the second board index was up 0.54 point or 0.65 pct at
84.08.
Trading volume was 550.997 mln shares valued at 945.654 mln rgt.
Gainers outnumbered losers4 25 to 285, with 309 stocks unchanged and 301
counters untraded.
"Market sentiment is improving, with the key concerns now subsiding,"
Vincent Khoo, head of research at Hwang-DBS Vickers, said.
The analyst said he believes global interest rates have peaked and that
the US Fed is likely to hold the benchmark rate steady at its current level
at its policy meeting this week.
However, he cautioned that Malaysian central bank may raise its key rate
in the next few months in a bid to narrow the gap between the US dollar and
the ringgit, although he added that any impact of a rate hike on the domestic
equity market is likely to be temporary.
Construction stocks were broadly higher on hopes of better earnings, with
investors expecting the government to speed up the implementation of projects
envisioned in its five-year development plan -- the Ninth Malaysia Plan
(9MP).
Wan Azhar Mustapha, investment analyst at OSK Securities, said he has
maintained an "overweight" recommendation on the construction sector since
early this year, mainly due to the launch of the 9MP.
He said premier construction companies like Gamuda and IJM Corp are
likely to benefit more from the revival of the construction sector.
"As for small-capitalization construction stocks, we have a 'buy' call on
Ahmad Zaki and Hock Seng Lee," he added.
Gamuda was up 0.08 rgt or 2.00 pct at 4.08, while IJM Corp lost 0.10 rgt
or 1.59 pct to 6.20.
Hock Seng Lee gained 0.02 rgt or 0.69 pct to 2.92 and Ahmad Zaki rose 0.
05 rgt or 2.38 pct to 2.15.
Wan Azhar also said he views Proton's move to form a partnership with PSA
Peugeot-Citroen positively.
"On the surface, it is a right step for Proton. However, it is too early
(to gauge the impact) and investors are likely to keep a wait-and-see stance
for the time being," the analyst said.
Proton ended the day up 0.10 rgt or 2.04 pct at 5.00.
Maybank closed higher at 11.30 rgt, gaining 0.10 rgt or 0.89 pct, while
Telekom Malaysia was down 0.05 rgt or 0.55 pct at 9.10.
Among gainers, Palm oil producer IOI Corp rebounded from profit-taking,
rising 0.30 rgt or 1.89 pct to 16.40.
Budget airline AirAsia was sharply higher on falling crude oil prices, up
0.11 rgt or 7.33 pct at 1.61.
CIMB Research recently upgrade the airline to "outperform" with a target
price of 1.95 rgt, saying a fuel hedge is imminent for the airline.
Malaysia Airlines was up 0.02 rgt or 0.65 pct at 3.12 despite managing
director Idris Jala's comment that the national carrier may see the
profitability of its Sabah and Sarawak routes adversely affected by the entry
of Singapore low-cost carrier Tiger Airways.
Utama Banking Group and Rashid Hussain Bhd (RHB) were both sharply higher
on speculation that the Employee Provident Fund may revise upward its offer
price for Utama's 32.8 pct stake in RHB. Utama was up 0.06 rgt or 5.71 pct at
1.11 and RHB was up 0.06 rgt or 4.84 pct at 1.30.
At the close, the ringgit was quoted at 3.6803/6853 to the dollar,
compared with Friday's close of 3.6755/6805.

For tomorrow, market up in morning...profit taking must be in afternoon...

For CPO market...market will collape to 1500 points...

Regard

Anthony Wong

Friday, September 15, 2006



Kuala Lumpur shares closed firmer as local funds support blue chips - UPDATE 15/9/2006
- Share prices closed firmer as local funds
supported blue chips amid expectations that the market could extend its mild
technical rebound next week, dealers said.
The Kuala Lumpur Composite Index (KLCI) closed up 1.89 points or 0.20 pct
at 958.99. For the week the KLCI has gained 2.29 points or 0.24 pct.
The FTSE Bursa Malaysia 30 large-cap index fell 0.35 point to 6,211.95,
while the second board index gained 0.33 point to 83.54.
Trading volume was 555.04 mln shares valued at 790.51 mln rgt.
Gainers outnumbered losers 376 to 283, with 343 stocks unchanged and 317
counters untraded.
A local brokerage dealer said that despite today's gains "sentiment
remains fragile as the market continues to lack fresh leads."
Many retail investors continue to stay on the sidelines, he noted.
"Even though buying momentum from local institutions has been steady,
retail investors are unimpressed and remain relatively bearish on the market,
" he said.
Dealers said local institutions are expected to support the market at the
psychologically key 950 points level next week, with large-cap blue chips the
principal focus of their buying.
Retail investors may opt for some rotational plays and speculative
second-liners for quick gains, they said.
"I believe local institutions are supporting the market with strong
interest in big capitalized stocks while selling pressure slows down with
foreign funds getting out of the market or just uninterested," said EON
Capital Securities' head of research Pong Teng Siew.
Among blue chips, Genting closed up 0.10 rgt at 24.50, BAT Malaysia
advanced 0.25 rgt to 42.00 and UMW Holdings rose 0.10 rgt to 7.40.
ACP Industries fell 0.005 rgt to 0.915 on profit-taking after gaining
earlier on expectations that it will benefit from a 1.4 bln rgt highway
contract awarded to its major shareholder MTD Capital.
Muhibbah Engineering surged 0.16 rgt or 9.20 pct to 1.90 on news that it
has been awarded a 158.33 mln usd LNG construction contract in Yemen.
Scomi Group added 0.06 rgt or 7.02 pct to 0.915 after the oil and gas
firm reportedly said it expects revenue to reach 1 bln usd by 2009.
Rashid Hussain Bhd fell 0.03 rgt to 1.24 after its major shareholder
Utama Banking Group rejected the Employees Provident Fund's (EPF's) offer to
acquire Utama's entire stake in RHB due to pricing disagreement. Utama
Banking was down 0.07 rgt at 1.05.

For next week...SHORT KLOFF on teusday or wednesday...target 930 points near term...

For CPO market...market weak...target 1500 points...

Regard

Anthony Wong

Thursday, September 14, 2006

Kuala Lumpur shares close firmer on late support from local funds - UPDATE 14/9/2006
- Share prices closed firmer on late support from
local institutions as well as on bargain-hunting after recent losses, dealer
said.
They said follow-through interest is likely to see the key index opening
higher tomorrow as buying momentum in blue chips increases from local
institutions, which are seen supporting the market at the 950 points level.
The Kuala Lumpur Composite Index (KLCI) closed up 2.85 points or 0.30 pct
at 957.10.
The FTSE Bursa Malaysia 30 large-cap index rose 12.04 points to 6,212.30,
while the second board index eased 0.20 points to 83.21.
The finance sub-index, the biggest gainer among sectors, rose 72.19
points or 2.07 pct to 3,564.15, followed by the mining sub-index which gained
4.41 points or 0.85 pct to 522.03.
Trading volume was 503.44 mln shares valued at 787.14 mln rgt.
Gainers outnumbered losers 391 to 293, with 320 stocks unchanged and 316
counters untraded.
"Buying momentum seemed to be gathering ground in the afternoon session
with some keen buying support in selected blue chips," a local brokerage
dealer said.
He added that bargain-hunting in blue chips and lower liners began to
emerge, especially in the latter part of the afternoon session.
"We could likely see a technical rebound tomorrow as local institutions
try to support the market at the 950 points level. However, the upside is
likely to to be capped by more selling especially from foreign funds," he
added
TA Securities said in a note to clients the revived momentum in
lower-liners after a lackluster showing for nearly two months should spur
further participation from retail investors, with renewed rotational plays
crucial to sustaining interest.
Sector-wise, construction stocks may attract interest again as rotational
plays pick up, it said.
Among blue chips, IOI Corp was up 0.50 rgt at 16.10, Kuala Lumpur Kepong
rose 0.30 rgt to 11.10 , and Transmile advanced 0.30 rgt to 11.80.
MTD Capital gained 0.10 rgt or 5.95 pct to 1.78 on news that the highway
operator has won a 1.4 bln rgt highway project from the government. MTD
Infraperdana gained 0.065 rgt to 1.04 on the contract win.
Pos Malaysia rose 0.32 rgt or 6.93 pct to 4.94, after
government-controlled investment firm Khazanah Nasional again raised its
stake in the company.
Road Builder was up 0.07 rgt at 2.45 on the construction sector's
improved outlook, as well as the company's own earnings prospects.
Esso Malaysia turned flat at 3.70 after bargain-hunting offset earlier
losses after the company dismissed as "speculation" media reports that parent
ExxonMobil Corp is planning to take the firm private by the end of the year.

For tomorow...market may test 960 points again...

For CPO market...market may test 1500 points...

Regard

Anthony Wong

Wednesday, September 13, 2006

Kuala Lumpur shares close flat as local funds avert mining-led slump -UPDATE 13/9/2006
- Share prices closed little changed, with a
slight upward bias after institutional funds re-emerged from the sidelines to
pick up bargains in the aftermath of a fall led by mining stocks due to the
recent worldwide downtrend in oil and metal prices, dealers said.
They said the market may open higher tomorrow on follow-through
bargain-hunting interest from local institutions, before giving way to
profit-taking again in a market still caught in a tight range.
The Kuala Lumpur Composite Index (KLCI) was up 0.55 points to close at
954.25.
The FTSE Bursa Malaysia 30-large cap index rose 1.42 points to 6,200.26.
The mining sub-index was down 6.61points or 1.27 pct at 515.42, followed
by the plantation sector, with the sub-index down 44.43 points or 1.26 pct at
3,475.40.
The second board index gained 0.36 points to 83.41.
Trading volume was 717.54 mln shares valued at 902.35 mln rgt.
Losers outnumbered gainers 341 to 326 , with 342 stocks unchanged and 311
counters untraded.
"It was the same thing again today -- foreign funds cashing out, as they
did when the market hit a high of 970 points" in intraday trade on September
4, the day Budget 2007 was announced, a local dealer said.
Now "foreign funds are seeing more value in the United States and in
regional markets that are reacting positively to the fall in crude oil
prices. It is only natural that these funds cash out of here and channel the
funds into those more profitable markets," he said.
However, he added that further falls are likely to be cushioned by buying
support from local funds, with the market's immediate strong support level
seen at 950 points.
TA Securities, in a note to clients, said the sudden return of retailers
yesterday to inject some momentum into trading in lower-liners had provided a
counterbalance to the correction undergone by the blue chips sector.
The brokerage said rotational play among lower-liners must continue to
encourage more retail participation, which has been absent for almost two
months now.
Among blue chips, Transmile was up 0.20 rgt at 11.50, Kulim rose 0.18 to
4.24 rgt, and BAT Malaysia advanced 0.25 rgt to 42.00.
Intan Utilities was sharply higher by 0.12 rgt or 6.38 pct at 2.00 on
news that its major shareholder Vista Meranti wants to take the company
private by making a voluntary general offer for the firm.
Malaysia Airlines was up 0.06 rgt at 3.40 on hopes that easing crude oil
prices will help reduce fuel costs and cut losses.
QSR Brands advanced 0.14 rgt to 3.48 after the company said it is making
a mandatory general offer for KFC Holdings (Malaysia) Bhd.
KFC Holdings rose 0.06 rgt to 4.94 on news that QSR Brands is making a
mandatory offer for its shares at 4.94 rgt each.
AirAsia added 0.01 rgt to 1.45 on follow-through buying, with investors
expecting the budget airline to benefit from easing crude oil prices.
Esso Malaysia rose 0.02 rgt to 3.70 on bargain hunting activity after it
fell earlier when the firm told Bursa Malaysia that media reports about its
possible privatization are pure speculation.

For tomorrow...stock will rebound ...target 960 points near term...

For CPO market bottom... up trend may resume...

Regard

Anthony Wong

Tuesday, September 12, 2006

Kuala Lumpur shares close flat as foreign pressure offsets local support
UPDATE 12/9/2006
- Share prices closed little changed as selling
pressure from foreign investors met some support from local institutions,
dealers said.
Plantation stocks led the day's decline following recent gains.
Dealers said foreign investors will continue to sell their blue chip
holdings systematically in the next few days, taking advantage of any
intraday upswing, but trading will remain in a narrow range as institutional
funds will also maintain a certain level of interest.
The Kuala Lumpur Composite Index (KLCI) was down 2.02 points or 0.21pct
to close at 953.70.
The FTSE Bursa Malaysia 30-large cap index fell 5.97 points to 6,198.84.
The plantation sub-index was down 113.21 points or 3.13 pct at 3,507.03,
followed by the mining sector, with the sub-index down 6.61 points or 1.25
pct at 522.03.
The second board index gained 0.49 points to 83.05.
Trading volume was 710.72 mln shares valued at 824.69 mln rgt.
Gainers outnumbered losers 390 to 309, with 332 stocks unchanged and 290
counters untraded.
"The market is just sick and is crying out for news. Apart from Budget
2007, there just hasn't been any impetus for the market or for investors to
buy in the market," EON Cap Securities research manager for charts Lee Cheng
Hooi said.
He said he believes selling in the past few days was coming mainly from
foreign investors wanting to cash out of the Malaysian market due to
expensive valuations and a lack of fresh leads to justify further buying.
He said he sees the market's immediate support level at 943 points,
followed by 937 and 935.
"The sharp fall in Genting shares further hurt already fragile sentiment,
although the drop had been expected, as investors 'bought on rumors and sold
on news' of its purchase of an additional stake in Stanley Leisure, the UK's
largest casino operator," an analyst at OSK Securities said.
The analyst said local institutions took a breather as they now regard
blue chips' valuations as demanding.
Overall, he said trading remained cautious and the market is expected to
consolidate further before finding a stable base.
TA Securities, in a note to clients, said a further downward correction
is anticipated in blue chips and the KLCI, given the prevailing weak momentum
and market breadth, "which should tend to dampen buyers' resolve in the
near-term."
"With technical momentum indicators maintaining their bearish readings, a
further dip toward the 950-point immediate support is likely before more
meaningful bargain-hunting could emerge," the brokerage said.
"More sustainable support is seen at 937 if the 950 support gives way,"
TA added.
Among blue chips, IOI Corp was down 0.50 rgt at 15.80, Kuala Lumpur
Kepong fell 0.50 rgt to 10.80, while Telekom Malaysia rose 0.05 rgt to 9.15 .
Genting was down 0.60 rgt at 24.40 on profit-taking after unit Genting
International confirmed it is making a cash offer for Stanley Leisure.
Esso Malaysia slid 0.08 rgt to 3.68 on profit-taking after it gained
earlier on talk that its major shareholder ExxonMobil Corp may take the firm
private soon.
Sime Engineering Services advanced 0.04 rgt to 1.33 on hopes that the
company may secure two deals in the Middle East by year-end.
Lion Forest Industries was up 0.09 rgt at 2.78 on speculation the company
may be taken private by its major shareholder.
AirAsia Bhd rose 0.07 rgt or 5.11 pct to 1.44 on hopes that potential
liberalization of the lucrative Kuala Lumpur-Singapore route would boost the
budget airline's earnings.

For tomorrow...market will rebound...arget 970 points near term...

For CPO market...up then down tomoroow...

Regard

Anthony Wong

Monday, September 11, 2006


Kuala Lumpur shares close easier on profit-taking; retailers shun trade -
UPDATE 11/9/2006
- Share prices closed little changed, with
profit-taking especially in construction and plantation stocks giving the
index a slightly negative bias, although trade was rangebound as retail
investors shunned the market on a lack of fresh leads, dealers said.
They said caution may continue to characterize trade tomorrow until new
leads emerge.
The Kuala Lumpur Composite Index (KLCI) was down 0.98 points to close at
955.72.
The FTSE Bursa Malaysia 30-large cap index fell 7.02 points to 6,204.
81.
Construction stocks led the losers, with the sub-index down 1.46 points
or 0.92 pct at 157.22, followed by the plantation sector, with the sub-index
down 30.43 points or 0.83 pct at 3,620.24. The second board index dropped 0.
29 points to 82.56.
Trading volume was 360.17 mln shares valued at 643.82 mln rgt.
Losers outnumbered gainers 393 to 266, with 353 stocks unchanged and 307
counters untraded.
"Trading remained quiet and sideways as investors looked for new leads,"
a local brokerage dealer said.
He said investors were reluctant to take any significant position as they
expected the market to consolidate further, with some participants seeing the
current market valuations as a "bit expensive."
The dealer also noted a weakening of buying interest from local
institutions over the last few days.
"Market movement this week is expected to remain rangebound as investors
continue to lock in profits after the brief rally that followed the national
budget for 2007," MIDF Securities' analyst S. Sharath said.
The market's current weaakness is "also due to the absence of any strong
positive leads," he added.
Plantation stocks which had been strong market movers were also hit by
profit-taking, while the continued fall in Mesdaq counters due to their
higher risk portfolio served as another negative factor for the market, he
said.
The drop in world petroleum prices is a positive, "but it is only one of
the many factors affecting overall sentiment," he added.
TA Securities, in a note to clients, said bearish momentum and trend
indicators on the KLCI suggest that a further correction may be necessary
following the recent confirmation of a significant double top at 970 points.
"Despite the overbought technical conditions having been neutralized,
which lessened the KLCI's near-term downside momentum, a base-building phase
to form a higher support platform needs to ensue before market players get
convinced the present uptrend still has some legs," the brokerage added.
TA said the index's immediate support at 950 points is expected to be
tested this week as the market consolidates, with an immediate upside seen at
960 points.
Among blue chips, IOI Corp was down 0.20 rgt at 16.30, Shell Refining Co
fell 0.20 rgt to 10.30, while Malayan Banking dropped 0.10 to 11.20.
Property firm Landmarks ended flat at 1.64 on profit-taking after it
gained earlier on news that Genting unit Phoenix Spectrum has raised its
stake in the company to 24.38 pct.
IJM Corp was unchanged at 6.10 rgt after profit-taking erased earlier
gains on news that a consortium which it leads has secured a 1.32 bln rgt
contract in the Middle East.
Kian Joo Can Factory was higher by 0.06 rgt at 2.48 on news that the
company plans to issue bonus shares on the basis of one share for every five
shares held.
Rashid Hussain (RHB) and Utama Banking Group were higher, by 0.13 rgt and
0.065 rgt at 1.21 and 1.05, respectively, on hopes that RHB's stake sale
discussions between the Employees Provident Fund (EPF) and Utama Banking may
be concluded soon.
Dunham-Bush (Malaysia) was up 0.13 rgt or 6.40 pct at 2.16 after its
major shareholder Berjaya Corp said it plans to sell its entire stake in the
company

For tomorrow...target market to rebound and to test 960 points againt...

For CPO market will rebound first to 1570 points then go down to 1500 points...

Regard

Anthony Wong

Friday, September 08, 2006


Kuala Lumpur shares close flat as plantations profit-taking erodes gains
-UPDATE 8/9/2006
- Share prices closed flat as mounting pressure
from profit-taking in plantation stocks wiped out gains made earlier on local
institutional interest in select blue chips, dealers said.
Trading next week is seen remaining rangebound as the market is expected
to consolidate further ahead of strong fresh leads, they said.
The Kuala Lumpur Composite Index (KLCI) was up 0.85 points to close at
956.70 . For the week, the KLCI lost 3.99 points or 0.42 pct.
The FTSE Bursa Malaysia 30-large cap index gained 9.20 points to 6,211.
83.
The plantation sub-index fell 23.89 points or 0.65 pct to 3,649.98.
The second board index gained 0.89 points to 82.85.
Trading volume was 354.01 mln shares valued at 666.30 mln rgt.
Losers outnumbered gainers 333 to 331, with stocks 375 unchanged and
281counters untraded.
TA Securities said in a note to clients that the KLCI's fall in the last
three days has relieved the downward pressure on the market.
"Following the recent three-day correction ... near-term downside
momentum for the KLCI should lessen," TA said.
"Going forward, an attempt to build base either at 950, or the stronger
support of 937, will be needed to cushion the downside and encourage
bargain-hunting. Selective rotational plays may highlight lower liners, as
the cautious tone prevails," TA added.
A local brokerage dealer said: "Persistent profit-taking in plantations
stocks is sending a negative signal to the market that maybe the uptrend of
the market is coming to a close."
"Plantation stocks have been the big winners in the market runup and as
such if they start to weaken it will be natural for investors to feel
cautious about the (broad) market going forward," he added.
Overall, he said investors are expected to remain sidelined in the next
few trading days to better gauge the direction of the market, likely toward
the end of next week.
Among blue chip counters, Tenaga Nasional was up 0.10 rgt at 9.25,
Telekom Malaysia was flat at 8.95 rgt at 9.10, and Malayan Banking was steady
at 11.30.
Tanjung Offshore was up 0.02 rgt at 2.28 on its transfer to the main
board today.
Resorts World fell 0.40 rgt to 11.30 , after the company said it plans a
1.1 bln rgt convertible notes issue.
MP Technology Resources was down 0.005 rgt or 6.25 pct at 0.075, after
the company said a special committee has discovered certain financial
irregularities at the firm, which may involve fraud.
APB Resources gained 0.035 rgt to 1.03, after the company said it plans
to form a joint venture with PSCI Industries to collaborate in building and
repairing vessels.
Genting was flat at 25.00 rgt on profit-taking following early gains
after the company said it is "awaiting advice" from unit Genting
International PLC on a reported bid for UK's Stanley Leisure

For next week...market set to rebound...may test 960 points again...

For CPO market...down trend continued to 1500 points...

Regard

Anthony Wong

Wednesday, September 06, 2006


Kuala Lumpur shares close lower as crude oil fall hits plantation stocks
-UPDATE 6/9/2006
- Share prices closed lower, with plantation
stocks hardest hit in late trade by the fall in crude oil prices, dealers
said.
Plantation stocks had earlier been bought up on hopes that higher crude
oil prices would lead to increased usage of biodiesel fuel.
The Kuala Lumpur Composite Index (KLCI) was down 7.45 points or 0.77 pct
at 956.39.
Dealers said the index may consolidate further with investors awaiting
fresh catalysts to emerge.
The FTSE Bursa Malaysia 30-large cap was down 54.33 points or 0.87 pct at
6,200.56 and the second board index was down 0.48 points or 0.58 pct at 82.23.
Trading volume was 415.84 mln shares valued at 780.33 mln rgt.
Losers outnumbered gainers 513 to 215, with 312 stock unchanged and 273
counters untraded.
A local brokerage dealer said the fall in crude oil prices provided an
excuse for profit-taking after recent rallies.
"The easing of crude oil prices was just an excuse," the dealer said.
Ang Kok Heng, chief investment officer at TA Asset Management, said he
expects demand for biodiesel to continue to grow and fuel a rise in palm oil
prices, saying the supply of palm oil is likely to remain tight.
However, for now, he added that share prices of major palm oil producers
may stay at current levels as they reflect the companies' fundamentals.
IOI Corp, Malaysia's largest palm oil producers in terms of market
capitalization, fell 1.00 rgt or 5.75 pct to 16.40, Kuala Lumpur Kepong lost
0.20 rgt or 1.72 pct to 11.40 and PPB Oil Palms was down 0.10 rgt or 1.24 pct
at 7.95.
Meanwhile, Malaysia's industrial output data for July is due out
tomorrow, with economists expecting the industrial production index to
register faster growth in line with the July exports figure released
yesterday.
Industrial output in June rose 7.0 pct year-on-year and was up 1.7 pct
from May, according to data issued by the department of statistics.
"We expect the (July) numbers to be good," said Wan Suhaimie, an
economist with K&N Kenanga, adding that he expects the July industrial output
to grow by 7.2 pct year-on-year.
Genting fell sharply amid speculation that the gaming operator has made a
bid for Stanley Leisure PLC. The stock was down 0.70 rgt or 2.75 pct at 24.
80. Resorts rose 0.10 rgt or 0.86 pct to 11.70.
BAT (Malaysia) fell 0.50 rgt or 1.18 pct to 41.75 as investors worried
that a rise in cigarettes' retail prices may hurt sales.
Proton was steady at 5.05 rgt, showing no apparent reaction to a
government statement that it expects to launch a reform plan by year-end in a
bid to help a turnaround plan for the national car maker.
Shell Refining Co was lower on easing crude oil prices, falling 0.10 rgt
or 0.93 pct to 10.70 and Petronas Dagangan was steady at 4.16 rgt while Esso
Malaysia bucked the trend by rising 0.32 rgt or 10.32 pct to 3.42.
AirAsia was sharply higher on news that the budget airline has made a bid
for the Kuala Lumpur-Singapore route. The stock rose 0.04 rgt or 3.05 pct to
1.35 while national carrier Malaysia Airlines fell 0.02 rgt to 3.00.
Blue chips Maybank lost 0.20 rgt or 1.75 pct to 11.20, Tenaga lost 0.05
rgt or 0.54 pct to 9.15 and Telekom Malaysia dropped 0.05 rgt or 0.55 pct to
9.00.

For tomorrow...Short for any rebound near 960 points...

For CPO market may try to climb to 1580 points before correction...

Regard

Anthony Wong

Tuesday, September 05, 2006


Kuala Lumpur shares close lower on broad profit-taking after recent highs
UPDATE 5/9/2006
- Share prices closed lower on profit-taking
following strong recent gains, with the market largely ignoring
higher-than-expected growth in Malaysia's July exports, dealers said.
The market is likely to continue to consolidate tomorrow as it absorbs
further profit-taking, after the benchmark index hit a six-year high of 970.
46 in the morning session, they said.
The Kuala Lumpur Composite Index (KLCI) fell 4.38 points or 0.45 pct for
the day to close at 963.84.
The FTSE Bursa Malaysia 30-large cap index was down 21.46 points or 0.34
pct at 6,254.79.
The second board index was down 0.18 point or 0.22 pct at 82.71.
Trading volume was 456.975 mln shares valued at 694.735 mln rgt.
Losers outnumbered gainers 486 to 242, with 319 stocks unchanged and 272
counters untraded.
Stephen Soo, senior technical analyst at TA securities, said the market
faces very strong resistance at 970 points.
"We expect the (KLCI) to be capped below the 970-point level. For the
near-term outlook, it will be very difficult for the (index) to overcome the
six-year high," Soo said, adding that the KLCI's next support level is seen
at 950 points.
Among key blue chips, Tenaga lost 0.05 rgt or 0.54 pct to 9.20, Telekom
Malaysia fell 0.15 rgt or 1.63 pct to 9.05 while Maybank rose 0.10 rgt or 0.
88 pct to 11.40.
Genting was lower on profit-taking after posting sharp gains yesterday,
amid speculation that it has made a takeover offer for British casino
operator Stanley Leisure PLC.
The Malaysian conglomerate fell 0.25 rgt or 0.57 pct to 25.50. A
spokeswomen for the group has declined to comment on the reported bid for
Stanley Leisure.
Genting's associated firm Resorts finished the day down 0.20 rgt or 1.69
pct to 11.60.
Speculative lower-liner Tebrau was sharply lower on speculation the stock
could be suffering from forced selling by some parties, dealers said. Tebrau
ended the day down 0.12 rgt or 23.53 pct at 0.39.
Meanwhile, Malaysia's July exports reported a 16 pct rise to 50.58 bln
rgt, supported by sustained demand from the US, Europe and Japan, economists
said.
"The 16-pct growth in July export marks a good start for the second half,
" Yeah Kim Leng, managing director and chief economist at RAM Consultancy
Services Sdn Bhd said.
He also said he expects Malaysia to continue to register double-digit
export growth amid a possible slowdown in global economic growth in the
second half.
"We believe the US economy is likely to achieve a soft landing," the
economist said.
Citigroup said in a research note that Asia remains vulnerable and
sensitive to any US slowdown.
The brokerage said correlations between overall East Asian export growth
and major destinations -- the US, Europe and Japan, remain very tight.
Electronic firms Malaysia Pacific Industries fell 0.10 rgt to 10.10,
while Unisem was steady at 1.50 rgt and Globetronic was unchanged at 0.29 rgt.
Palm oil producers were broadly lower on profit-taking, with IOI Corp
falling 0.30 rgt or 1.69 pct to 17.40, PPB Oil Palms down 0.10 rgt or 1.23
pct at 8.05 and Kuala Lumpur Kepong down 0.10 rgt or 0.85 pct at 11.60.
Government-linked plantation firm Golden Hope, however, was higher on its
plan to set up a biodiesel plant joint venture in South Korea, rising 0.02
rgt to 4.92.

For tomorrow...any rebound is a good SHORT...near term 900 points...

CPO Market may correct to 1500 points...

Regard

Anhony Wong

Monday, September 04, 2006


Kuala Lumpur shares close higher led by plantation, mining stocks - UPDATE 4/9/2006
- Share prices closed higher in thin trade with
the main index supported by interest in plantation and mining stocks on hopes
of stronger earnings growth next year, dealers said.
Investors also welcomed the government's budget proposals to cut the
corporate tax rate by two percentage points in stages over the next two years
to enhance the competitiveness of Malaysian firms, they said.
The Kuala Lumpur Composite Index (KLCI) finished the day up 7.53 points
or 0.78 pct at 968.22.
The FTSE Bursa Malaysia 30-large cap index was up 55.47 points or 0.89
pct at 6,276.25.
The second board index was up 0.04 points or 0.05 pct at 82.89.
The mining sector sub-index rose 26.43 points or 5.48 pct to 511.02 and
the plantation sector sub-index gained 83.62 points or 2.25 pct to 3,846.26.
Trading volume was 364.26 mln shares valued at 665.94 mln rgt.
Gainers outnumbered losers 378 to 342, with 310 stocks unchanged and 289
counters untraded.
Dealers said despite expectations that the proposed corporate tax cuts
will likely boost companies' earnings in the next two years, most analysts
are still rather bearish on the stock market outlook.
RHB Research said it is maintaining its KLCI year-end forecast at 880
points but has raised its target for 2007.
A one percentage point reduction in the corporate tax rate to 27 pct for
assessment year 2007 will increase the core net earnings per share growth for
the KLCI stocks by 1.2 percentage points to 13 pct for 2007, it said.
"This has the effect of raising our 2007 KLCI year-end target to 1,000
(points), from 960 previously," the research firm said.
Cheah King Yoong, acting head of research of SJ Securities said the
subdued trading volume was also due to weak sentiment among retail investors,
after a sell-off in lower liners last month.
Meanwhile, July trade figures are due out tomorrow amid concerns over a
possible global economic slowdown in the second half, dealers said. Exports
rose 11.4 pct year-on-year in June, according to official data.
In line with other economies around the region, which have seen export
growth momentum slowing recently, Malaysia is likely to experience slower
growth in the second half as well, said Teoh Kok Lin, managing director and
chief investment officer at Singular Asset Management.
"The flip side of the general pessimism regarding the market outlook is
that there would be greater chance to discover hidden value in the market,"
the fund manager said.
Among key blue chips, Maybank rose 0.10 rgt or 0.89 pct to 11.30, Telekom
Malaysia gained 0.10 rgt or 1.1 pct to 9.20, while Tenaga was steady at 9.25
rgt.
Genting was sharply higher on its solid earnings outlook for the second
half, rising 0.95 rgt or 3.83 pct to 28.75. Associated firm Resorts gained 0.
20 rgt or 1.72 pct to 11.80.
Builders Gamuda gained 0.12 rgt or 2.96 pct to 4.18 and IJM Corp rose 0.
10 rgt or 1.69 pct to 6.00, supported by the government's expansionary budget
for 2007, under which more construction projects are likely to be finalized
in the next 12 months.
British American Tobacco (BAT) was higher following the government's move
to raise the excise duty on cigarette products by one sen per stick, a
moderate increase compared with the previous year's increase. BAT was up 0.50
rgt or 1.19 pct at 42.50
JT International, another cigarette maker, ended the day unchanged at 4.
00 rgt.
Plantation stocks were broadly higher on hopes that higher crude palm oil
prices will likely boost the sector's earnings next year.
Among palm oil producers, IOI Corp rose 0.80 rgt or 4.73 pct to 17.70,
Kuala Lumpur Kepong gained 0.20 rgt or 1.74 pct to 11.70 and PPB Oil Palms
rose 0.15 rgt or 1.88 pct to 8.15.
Breweries were higher following the government's decision to keep the
excise duty on beer products unchanged, with Carlsberg gaining 0.05 rgt or 0.
99 pct to 5.10 and Guiness Anchor rising 0.10 rgt or 1.75 pct to 5.80.

For tomorrow...SHORT KLOFF...target 900 points near term...

For CPO market...target down to 1500 points...

Regard

Anthony Wong

Friday, September 01, 2006


Kuala Lumpur shares close firmer on Budget corporate tax reduction plan -
UPDATE 1/9/2006
- Share prices closed firmer as investors
welcomed the government's move to reduce the corporate tax rate by 2
percentage points in stages over the next two years under the proposed
national budget for 2007, dealers said.
Prime Minister Abdullah Ahmad Badawi said in his budget speech in
parliament that the government proposes to cut the corporate tax rate to 27
pct for 2007. Another one percentage point cut will be undertaken for the
following year. He said the move is aimed at enhancing the competitiveness of
Malaysian firms.
Dealers said the market is likely to firm further next week after
investors have fully digested the news of Budget 2007.
The Kuala Lumpur Composite Index (KLCI) closed at 960.69, up 2.57 points
or 0.27 pct from Wednesday. The market was closed yesterday for a public
holiday. For the week, the KLCI gained 10.17 points or 1.07 pct.
The FTSE Bursa Malaysia 30 large-cap was up 6.93 points at 6,220.78,
while the second board index was down 0.33 points at 82.85.
Dealers said a note of caution still lingered among minor stocks. Losers
outnumbered gainers 369 to 340, with 313 counters unchanged and 297 stocks
untraded.
Trading volume was 408.88 mln shares valued at 924.29 mln rgt
"The decision to lower the corporate income tax came as a suprise and it
would definitely have a positive impact on the bigger companies," MIDF
Sisma's equity economist Imran Nurginias said.
He said this will allow companies to reinvest more of their income and
boost private investment, which could spur economic activity.
"This will also help to cushion (any) fall in consumer spending," Imran
added.
He views the budget as expansionary and sees it postively affecting
investment and pump-priming the economy.
A local brokerage dealer said strong follow-through buying in blue chips,
especially from local institutional funds, are expected next week after
investors have fully digest the budget during the weekend.
He added that the lower-than-expected hike in tax duties on tobacco and
liquor will likely see companies like BAT Malaysia and Guiness Anchor
sustaining gains into next week.
TA Securities said in note to clients that the country's
stronger-than-expected second-quarter GDP growth of 5.9 pct compared with the
market consensus of 5.6 pct growth should also boost sentiment and push
selected blue chips higher.
According to TA, construction and transport-related stocks such as KBES,
MRCB, UEM Builder and UEM World should attract further interest on hopes they
will benefit from the governments 10 bln rgt plan to expand the Klang Valleys
light rail transit system in the next four years.
Among key blue chips, BAT Malaysia was up 0.50 rgt at 42.00, Genting
advanced 0.20 rgt to 24.80, Maxis Communications rose 0.20 rgt to 9.00 and
Tanjong PLC gained 0.10 rgt to 13.30.
Wonderful Wire & Cable was sharply lower by 0.025 rgt or 6.49 pct to 0.
36, after the company was reprimanded and fined by the stock exchange for
failure to disclose its results on time.
Asiatic Development was up 0.06 rgt at 3.74, despite the plantation firm
posting weaker interim results.
Guiness Anchor rose 0.05 rgt to 5.70, despite expectations that the
government may raise taxes on brewery firms when the prime minister presents
the Budget to parliament later today.
Resorts World was down 0.30 rgt at 11.60, after posting a 45.8 pct fall
in its net profit for the second quarter to June.
Malaysia Airlines was flat at 3.02 rgt, despite the national carrier
posting a narrower net loss for the second quarter to June, dealers said

For next week...SHORT KLOFF...target 900 points near term...

For CPO market...Short CPO to 1500 points...

Regard


Anthony Wong