Wednesday, November 01, 2006

Blue chips firmer, led by Pos Malaysia

Blue chips started the new month on Nov 1 on a firmer footing led by Pos Malaysia, though penny stocks were lower after the sharp fall on Sugar Bun and Sanbumi on Oct 31.

At midday, the KLCI had risen 1.6 points to 989.9 and the FBM Emas gained 6.79 points to 6,446.04 but the Second Board Index fell 0.02 point to 87.72. The KLCI futures for November rose 2.5 points to 988.

Trading volume was 344.56 million shares valued at RM362 million. Losers beat gainers 380 to 255 while 299 counters were traded unchanged.

Major Asian markets were higher at midday. Singapore's Straits Times Index added 24.22 points or 0.9% to 2,725.97, South Korea's KOSPI 0.9% to 1,376.79 and Japan's Nikkei 225 0.2% to 16,432.5.

Light crude oil for December delivery was traded at US$58.56.

Analysts said the market undertone was healthy among blue chips, with rotational interest seen in counters with fresh corporate news including Pos Malaysia and Bursa Malaysia Bhd.

They said investors were awaiting more leads on contracts to be awarded in the Ninth Malaysia Plan in coming weeks.

Among the heavyweights, Telekom rose 10 sen to RM8.85, Maybank was flat at RM11.20 while Tenaga fell five sen to RM9.95.

Pos Malaysia rose 29 sen to RM5.25 after announcing its RM1.50 per share payment. Ta Ann extended its gains on stronger earnings, up 30 sen to RM10.70.

Bursa rose 15 sen to RM6.10 after its third quarter net profit rose 28.14% to RM25.1 million for the third quarter ended Sept 30, 2006. It also declared a special dividend of 28 sen per share less tax.

BAT and Hume Industries added 25 sen each to RM42.50 and RM3.24 while Kulim gained 22 sen to RM4.88 and Transmile 20 sen to RM12.90.

PLUS, which won a toll-concession contract in Indonesia, rose two sen to RM2.90.

GHL Systems was the most active with 17.74 million shares. It rose 0.5 sen to 21 sen.

The cautious sentiment towards penny stocks saw AT Systemisation falling four sen to 29.5 sen with 13.28 million shares traded. Talam extended its decline, down another two sen to 16.5 sen, after IJM denied buying a stake in the property developer.

Sugar Bun fell four sen to RM2.98 and the warrants lost 14 sen to RM2.49, as investors were cautious following Bursa Securities' recent query.

Selling pressure eased on Sanbumi, down one sen to 63.5 sen. On Oct 31, Sanbumi fell 29 sen to 64.5 sen.

Genting was the top loser, falling 25 sen to RM26.50 in thin trade, Shell lost 20 sen to RM10.40, IOI Corp and IOI Properties 10 sen each to RM17.10 and RM8.50.


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