Kuala Lumpur shares end morning higher on follow-through interest

Kuala Lumpur shares end morning higher on follow-through interest - UPDATE
01/06/2007 12:56:00
KUALA LUMPUR (XFN-ASIA) - Share prices ended the morning higher on
follow-through interest in major blue-chips but volume remained thin which
suggests that the upward momentum may not be sustainable, dealers said.
The Kuala Lumpur Composite Index (KLCI) was up 10.50 points or 0.78 pct at
1,357.39.
The FTSE Bursa Malaysia 30-large cap index gained 63.37 points or 0.73 pct to
8,696.81 and the second board index added 0.37 point or 0.37 pct to 100.90.
Gainers led losers 435 to 258, with 266 counters unchanged and 374 stocks
untraded.
Trading volume was 429.481 mln shares, valued at 808.363 mln rgt.
Analysts said the market's near-term outlook remains "tricky" as there is no
clear signal of a breakout on either side.
"On the surface, the market is trading firmer, but the thin volume may indicate
that sentiment is still pretty negative, as most of the investors are still
waiting on the sidelines," said a technical analyst from a local brokerage.
"To be cautious is still the better strategy for now. Only if the KLCI manages
to surpass 1,368 points, then we can consider this as a breakout and provide
investors a good excuse to jump in," he added.
Investors should also watch out for external shocks such as a collapse in
China's stock markets, the analyst said.
Index heavyweights ended the morning session higher, with Telekom Malaysia
rising 0.10 rgt or 0.96 pct to 10.50, Tenaga adding 0.10 rgt or 0.85 pct to
11.80 and Maybank up 0.20 rgt or 1.65 pct at 12.30.
Newly-listed Deleum topped the gainers list, rising 1.47 rgt or 57.65 pct to
4.02, against its initial public offering price of 2.55.
Plantation major IOI Corp advanced 0.50 rgt or 1.82 pct to 28.00, leisure group
Tanjong gained 0.40 rgt or 2.21 pct to 18.50, state-owned Petronas Dagangan rose
0.40 rgt or 4.30 pct to 9.70 and gaming group Genting was up 0.35 rgt or 4.43
pct at 8.25.
Transmile failed to recover from its earlier losses after it hit limit down in
the session with analyst expecting the shares to fall further in the afternoon
session. Transmile ended the morning down 2.65 rgt or 29.78 pct at 6.25.
Proton was down 0.05 rgt or 0.93 pct at 5.30 as investor sentiment was hit by
news that Volkswagen AG has walked away from a possible tie-up and the firm
posted a net loss of 591 mln rgt for the year to March 2007.
Second Finance Minister Nor Mohamed Yakcop said the government will name a new
partner for the national carmaker in three months following the latest
development.
Pos Malaysia added 0.12 rgt or 2.88 pct to 4.28, riding on the broader market's
strength, after opening lower on concern over the possible impact of accounting
irregularities at Transmile Group Bhd, in which it holds a stake.
At the close, the ringgit was quoted at 3.3990/34005 against the dollar.
Three-month interbank rates were quoted at 3.55/57.


Source: Osk WireNews