Kuala Lumpur shares close higher in line with strong regional gains

Kuala Lumpur shares close higher in line with strong regional gains - UPDATE
31/05/2007 17:32:00
KUALA LUMPUR (XFN-ASIA) - Share prices closed higher, rebounding from its
earlier sluggishness, as the local bourse played catch-up with the strong
performances in regional markets, dealers said.
The Kuala Lumpur Composite Index (KLCI) closed up 7.71 points or 0.58 pct at
1,346.89, off a high of 1,350.46 and a low of 1,338.40.
The FTSE Bursa Malaysia 30-large cap index gained 82.11 points or 0.96 pct to
8,649.16 and the second board index added 0.47 point or 0.47 pct to 100.53.
Gainers led losers 539 to 271, with 294 stocks unchanged and 228 counters
untraded.
Trading volume was 762.988 mln shares, valued at 1.993 bln rgt.
Analysts said the market recovered from yesterday's weakness on the back of
Wall Street's rebound overnight.
"Trading momentum was weak throughout the day before the key index spiked up in
the last hour of trading, when the local bourse tried to pull away on the back
of the regional strength," said an investment analyst from a local brokerage.
On the market's near-term outlook, the analyst said he expects the sideways
trading to continue for now.
"The risk has certainly increased and the market's future direction will very
much depend on developments on the external front," he added.
SJ Securities technical analyst Phua Kwee Hock agreed that the key index is
likely to be stuck in rangebound trade for a couple of months and that he sees
the 2008 budget, to be unveiled only in the third quarter, as the next major
catalyst to lift the market.
Index heavyweights finished the day mostly higher, with Telekom Malaysia adding
0.20 rgt or 1.96 pct to 10.40, Tenaga gaining 0.20 rgt or 1.74 pct to 11.70 and
Maybank was steady at 12.10.
Petra Perdana rose 0.04 rgt or 1.10 pct to 3.66 after the firm reported strong
first quarter to March results boosted by two one-off items.
SP Setia jumped 0.35 rgt or 4.35 pct to 8.40 after it proposed to acquire a
piece of freehold land in the prestigious Bukit Tunku residential area for 73.9
mln rgt in cash from Tenaga Nasional.
IJM Plantations was higher after its fourth quarter to March net profit surged
to 8.940 mln rgt against 4.024 mln a year earlier, rising 0.08 rgt or 3.86 pct
to 2.15.
BIMB Holdings advanced 0.01 rgt or 0.84 pct to 1.20 as its third quarter to
March results swung to a net profit of 36.469 mln rgt, against a loss 84.875 mln
a year earlier.
Zelan topped the gainers list after the power plant construction company said
it is negotiating to buy key stakes in power assets in India, Indonesia and the
Middle East. The stock was up 0.40 rgt or 3.28 pct at 12.60.
As for losers, Sime Darby fell after the company reported its third quarter to
March results, with operating profit falling slightly due to its weak automotive
division. It finished the day down 0.20 rgt or 1.96 pct to 10.00.
Three-month interbank rates were quoted at 3.55/57 and the overnight rates were
at 3.47/50.
At the close, the ringgit was quoted at 3.3975/4025 against the dollar.


Source: Osk Wirenews