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.