The KLCI inched up 4.10points

The KLCI inched up 4.10points, to 942.08 at the market close with buying interest on selected blue chips. The strong support was due to institutional buying ahead of the upcoming Budget 2007 which will be unveiled on September 1.

14-08-2006: InsiderAsia's Model Portfolio

The KLCI rose slightly last week, although the broader market was more mixed and trading volume continued to decline. The market’s resilience was quite impressive given the backdrop of increased external uncertainties last week — ranging from rising crude oil prices, continuing violence in the Middle East to terrorism threats in the UK

Smaller plantation stocks in focus

Smaller plantation stocks were among the major gainers in the morning session on Aug 14 as they played catch-up to the bigger capitalised stocks.

Plantation stocks extended

Plantation stocks extended their rally last Friday on continuous positive news flow on biodiesel projects, higher exports, lower inventory and the persistently high CPO prices. There was some nibbling of blue chip issues by institutional investors

Stocks Mixed As Oil Prices Climb

AP -

Wall Street turned mixed Wednesday as strong earnings from Cisco Systems Inc. and the Walt Disney Co. lifted many stocks but a jump in oil prices, which raised the specter of accelerating inflation, eroded gains in large-cap issues.

Stocks Lower As Rates Remain at 5.25 Pct

Fed Takes Pause, Leaves Rate Unchanged

AP -

The Federal Reserve on Tuesday left a key interest rate unchanged, marking at least a temporary pause in what had been the longest unbroken stretch of Fed rate increases in recent history.

08-08-2006: Cautious ahead of Fed meeting

Share prices on Bursa closed mixed to slightly lower on Aug 8 with most investors staying sidelined and cautious ahead of the all-important US Federal Open Market Committee meeting on Aug 8 night.

The Federal Reserve will give its pronouncement on US interest rates and the scope for future rate hikes. Unlike previous meeting, most analysts are more divided this time around as to whether the interest rates will be raised.

Recent economic data have shown a deceleration in US economic growth – particularly in consumer spending, and the housing and labour markets, although some inflationary elements remain. Some fear the US economy is also slowing on its own, and further rate hikes will sharpen any slowdown, which will have repercussions for the rest of the world.

The KLCI alternated between marginal positive and negative territory throughout the day, ending just 0.6 of a point higher at 939.1. The index traded within a narrow 3-point range throughout the day. Declining stocks edged out advancing ones by a 7-to-6 ratio at the close. A total of 426 million shares changed hands.

Retail and penny stocks continued to dominate trading, but almost all of them were in the red. The top actives include Iris, MP Tech, UEM World and Tebrau. PLUS was the only noticeable blue chip in the top 10 actives list – it closed unchanged. Major losers include BAT, Maybank, IJM and Hong Leong Bank.

08.08.06 : Lower liners, penny stocks down at midday

Lower liners and penny stocks, which hogged trading activity in recent weeks, fell on Aug 8 as investors turned cautious ahead of the US Federal Reserve meeting, despite Malaysia's June industrial production index having beaten economists' expectations.

At 12.30pm, the Kuala Lumpur Composite Index was down 0.72 point to 937.76, the FBM Emas fell 5.09 points to 6,090.69 and the Second Board Index lost 0.41 point to 89.19.

Turnover was 205.54 million shares valued at RM231.42 million. Losers beat gainers 318 to 165 while 333 counters were unchanged.

Among the Asian markets, Japan's Nikkei 225 rose 0.97% or 146.82 points to 15,300.88, Hong Kong's Hang Seng Index added 0.36% to 17,015.21 and South Korea's KOSPI rose 0.82% 1,300.09 but Singapore's Straits Times Index fell 0.2% to 2,455.29.

Light crude oil for September delivery was at US$76.80 per barrel while oil for January 2007 delivery soared to US$80.08.

Analysts said investors were cautious ahead of the US Federal Reserve meeting to decide on the interest rate policy. They added the KLCI extended its consolidation after failing to stay above the 940-resistance level on Aug 8.

The June IPI rose rose 7% to 135.3 from 126.5 a year ago, which was above economists' expectations of 5.3%, driven by the manufacturing sector.

Among the heavyweights, Maybank fell 10 sen to RM10.70, Tenaga was unchanged at RM9.15 but Telekom rose five sen to RM9.10.

Iris was the most active with 36.54 million shares done. It fell two sen to 52.5 sen. MP Tech lost three sen to nine sen and Poly Tower two sen to 64 sen.

UEM World fell six sen to RM1.50 in active trade while UEM Builders and Time Engineering two sen each to RM1.22 and 60 sen.

BAT was the top loser, down 25 sen to RM42.25 with only 200 shares done. Nestle, Transmile and IJM gave up 10 sen each to RM23.60, RM12.20 and RM5.75.

DeGem rose 13.5 sen to RM1.08 after the board of directors declared a special interim dividend of 33% per share for the financial year ending Dec 31, 2006.

Resorts and KL Kepong rose 40 sen each to RM12.20 amd RM11.40 while Genting added 20 sen to RM24.80.

MayBulk added 11 sen to RM2.29, Sime Darby and DiGi 10 sen each to RM5.65 and RM11.70, RHB Capital six sen to to RM2.78.

Landmarks recovered some of its losses from yesterday, rising seven sen to RM1.69.

07.08.06 :Blue chips extend gains, Kulim at fresh highs

Blue chips extended their gains on continued buying of index-linked stocks including construction and plantation counters on Aug 7, despite the overall cautious market where losers beat gainers three to two.

Kulim was at a nine-year high of RM4.40, up 20 sen and the warrants rose 17 sen to RM2.07 as it played catch-up with other plantation stocks which had rallied in recent weeks. Kulim's net tangible asset per share is RM10.66.

At 12.30pm, the Kuala Lumpur Composite Index added 1.46 points to 939.45, off its early high of 942. The FBM Emas rose 1.01 points to 6,099.19 but the Second Board Index fell 0.14 point to 89.96. The KLCI futures for August rose six points to 936.5.

Turnover was 201.61 million shares valued at RM232.37. Losers beat gainers 338 to 235 while 252 counters were unchanged.

Other major markets in Asia were mostly lower except for Singapore. Japan's Nikkei 225 slid 1.47% or 227.47 points to 15,271.71, South Korea's KOSPI fell 0.77% to 1,294.51 and Hong Kong's Hang Seng Index lost 0.12% to 16,867.15. However, Singapore's Straits Times Index rose 0.12% to 2,465.79.

Light crude oil for September delivery remained at high levels, trading at US$75.80.

Analysts said the recent corporate earnings had been quite satisfactory and there were continued buying of plantation and construction stocks.

TA Securities Research said there was still medium-term upside for the market with bargain hunting despite the shallow profit-taking dip last Friday.

It said for this week, a further bullish catalyst would be needed to extend the current up-trend, otherwise another week of range bound trading was anticipated," it said. The immediate resistance is 940 while the support level is 931.

Among the heavyweights, Maybank and Telekom were unchanged at RM10.70 and RM9.05 while Tenaga lost five sen to RM9.15.

DiGi rose 30 sen to RM12.30, BAT 25 sen to RM42.25, Transmile and KL Kepong 20 sen each to RM12.40 and RM11.20. MISC-F added 15 sen to RM8.30 and the local shares 10 sen to RM8.40.

Gamuda warrants rose 11.5 sen to 81 sen and the shares eight sen to RM3.84. Ranhill added seven sen to RM1.22.

AirAsia rose four sen to RM1.38 in active trade. Iris was the most active with 32.71 million shares. It fell one sen to 60.5 sen.

Pantai, which saw the Government of Singapore Investment Corporation emerging as a substantial shareholder with a 5.01% stake, was untraded at RM2.29.

Landmarks was among the major losers, down 12 sen to RM1.67 on profit taking. It plans to place out 29.53 million new shares at RM1.54.

Tanjong fell 20 sen to RM13.60, Magnum 4D 18 sen to RM2.50 and Resorts 10 sen to RM11.80.

04-08-2006: Cautious trading ahead of US data

Share prices on Bursa Malaysia closed mixed to marginally higher on Friday. Overnight gains on Wall Street helped nudge the market higher, but gains were small as investors adopted some caution ahead of Friday night’s all-important July US non-farm payrolls report. Indeed, the cautious tone was not limited to Malaysia, but prevalent elsewhere in the region as well.

The payrolls report is the last piece of economic data before the Federal Reserve meets next Tuesday to discuss on interest rates. As such, much of what it contains later tonight is likely to determine the direction of US and global equity markets, and US interest rates.

The KLCI was in minor positive territory for most of the day, trading within a narrow four-point range. The index closed 2.7 points higher at 938. Market breadth was mixed for much of the day, but turned in favour of advancers by a 7-to-6 ratio at the close. A total of 437 million shares changed hands.

Retail and penny stocks like Iris and Leader continued to dominate trading. A few institutional stocks like Gamuda and AirAsia also made it to the top actives list – with decent gains too. The day’s top gainers include Resorts, Gamuda, Ta Ann, KFC and IOI Corp. Losers include BAT, Transmile, MPI and EON Capital. -- InsiderAsia

03-08-2006: Unclear outlook

Stocks on Bursa continued to tread water on Aug 3. The benchmark KL Composite Index traded within a narrow band while mild selling pressure was observed on lower-liner stocks.

Investor ambivalence will likely prevail in the near term. High crude oil prices, in particular, are expected to keep markets on edge. Crude futures on the NY Mercantile Exchange are now trading above US$75 (RM276.13) per barrel.

The KLCI closed just over a point higher at 935.3 points. But market breadth was slightly negative with losing counters outnumbering gaining ones by a ratio of 1.3 to one. Market volume was relatively steady at 550 million shares.

UEM Builders and UEM World were among the most actively traded stocks on Aug 3 after the UEM Group secured the contract to build and manage the proposed second Penang bridge. The concession is one of the major projects to be rolled out under the 9th Malaysia Plan.

Telekom Malaysia closed marginally higher at RM9 after releasing a pretty solid set of 2Q06 earnings results. Although its local fixed line and mobile businesses remain under pressure, investments overseas are beginning to bear returns. The company proposed an interim dividend of 16 sen per share.

UEM Group gets 2nd Penang bridge project

UEM Group has been appointed the concessionaire to build, manage, operate and maintain the second Penang bridge, the Prime Minister said.

Datuk Seri Abdullah Ahmad Badawi said in a statement on Aug 2 the Cabinet had approved the second bridge for Penang and construction of the monorail as private finance initiatives (PFIs) under the Ninth Malaysia Plan.

He said UEM Group was appointed the concessionaire for the second bridge project because it is a concession holder of the Penang Bridge. The company had extensive expertise and experience in the matter, he said.

As for the monorail project, he said qualified companies will be invited to present their proposal papers for implementation.

Abdullah said the government will carry out research on a Kuala Lumpur-Singapore Bullet Train, another PFI project proposed by a private company.

The government, he said, views positively the proposal for the construction of the Bullet Train but will direct a socio-economic study to be carried out to assess the impact on national interests before the project proceeds.

"Through the PFI, financial risks will be shouldered by the private sector while the government utilises the expertise and efficiency of the sector to carry out complex infrastructure projects such as these.

"The government will provide support and make it easy for parties involved in these projects.

"This also proves the government's commitment to fine-tune privatisation programmes through PFI while encouraging more involvement from the private sector in generating economic growth," he said.

02-08-2006: Listless market

The KL Composite Index opened in positive territory on Aug 2, but gradually succumbed to some mild profit taking. The closely monitored benchmark index ended the day marginally lower at 934.1 points.

Trading was fairly quiet, even listless, in the absence of market-moving developments. About 565 million shares changed hands. Second and lower-liner stocks accounted for the bulk of market volume. Iris Corp was, by far, the most actively traded counter. The stock closed marginally higher at 69.5 sen.

New Mesdaq-listing, ISS Consulting Solutions was the second most actively traded for the day. The stock never really took off, opening in the red. Losses widened as the day progressed. The shares eventually ended its first day of trading nine sen below its IPO price of 41 sen.

Market breadth leaned towards the negative. At the close, losing counters outnumbered gaining ones by 1.2 to one. On the positive note, selling pressure appears relatively mild. The market is likely to continue treading water as investors wait for fresh leads.

Tanjong was the topped the gainers list on Aug 2, recouping losses from the previous trading day. On the whole, interest in most blue-chip stocks remained lacklustre. IOI Corp, DiGi and KL Kepong succumbed to some profit taking on the back of recent gains. -- InsiderAsia