Kuala Lumpur shares outlook - Mixed on consolidation, focus on oil & gas stocks

Kuala Lumpur shares outlook - Mixed on consolidation, focus on oil & gas stocks
29/05/2007 08:16:00
KUALA LUMPUR (XFN-ASIA) - Share prices are expected to open mixed as market
consolidation continues, although positive corporate results such as that of
Malaysia Airlines System (MAS) and follow-through interest in oil and gas stocks
may support sentiment, dealers said.
Teoh Cheng Guan, head of retail research at Kenanga Investment Bank, said there
is downside risk amid lingering fears that China's stock market bubble may burst
anytime.
"Stock picking is key," said Teoh.
He said investors should go for quality blue chips and avoid lower-liners that
involve greater risks when the broader market is consolidating.
Dealers said stocks to watch today include MAS, which is likely to advance
after it reported a first quarter net profit of 133 mln rgt against loss of 321
mln a year earlier.
This is the third consecutive profitable quarter for the national carrier.
Malaysian Plantations may also attract buying after registering a fourth
quarter to March net profit of 55.212 mln rgt from a loss 11.587 mln the
previous year.
Yesterday, the Kuala Lumpur Composite Index (KLCI) closed up 6.91 points or
0.52 pct at 1,345.99.
The FTSE Bursa Malaysia 30-large cap index added 68.61 points or 0.80 pct to
8,627.04 and the second board index was down 1.08 points or 1.08 pct at 101.11.
Gainers led losers 449 to 402, with 274 stocks unchanged and 211 counters
untraded.
Trading volume was 660.481 mln shares, valued at 1.276 bln rgt.


Source : Osk Wirenews

Malaysia's Bank Negara leaves key rate unchanged at 3.50 pct

Malaysia's Bank Negara leaves key rate unchanged at 3.50 pct
28/05/2007 18:00:00
KUALA LUMPUR (XFN-ASIA) - Bank Negara said its monetary policy committee has
decided to leave the overnight policy rate (OPR) unchanged at 3.50 pct as the
economy is expected to sustain growth, while inflation will remain within the
expected range over the medium term.
"Given the medium-term outlook for inflation and economic growth, the current
level of the policy rate remains appropriate," Bank Negara said in a statement.
The central bank said despite the less favourable external environment has had
a moderating effect on Malaysia's export growth, strong domestic demand has
sustained growth.
"The public sector has also had an important positive impact on domestic
economic activity," it added.
On the outlook for inflation, the central bank said the expectations are that
the average rate of inflation for 2007 would be within the projected range of
2-2.5 pct.
However, it cautioned that the continued high prices of commodities and
agricultural products, and the rise in global food prices could have
implications for domestic food prices and overall inflation.
"In view of the uncertainty in the external environment, developments in the
international economy would be monitored closely," it said.



Source: Osk WireNews

Malaysia, Indonesia, Saudi Arabia sign 7-bln-usd oil pipeline deal

Malaysia, Indonesia, Saudi Arabia sign 7-bln-usd oil pipeline deal
28/05/2007 14:38:00
KUALA LUMPUR (XFN-ASIA) - Malaysian, Indonesian and Saudi Arabian firms have
signed agreements for the construction of a pipeline that aims to divert 20 pct
of oil flowing through the Malacca Strait, the project owner said.
Malaysia's Trans-Peninsula Petroleum Sdn Bhd said it signed an agreement with
Malaysia's Ranhill Engineers and Constructors Sdn Bhd and Indonesia's PT
Tripatra to build the pipeline at an estimated cost of 7.0 bln usd over seven
years.
Trans-Peninsula, the owner and promoter of the project, said it signed separate
memoranda of understanding with Bakrie and Brothers of Indonesia to supply
pipes, while Al-Banader International Group of Saudi Arabia will supply the oil.
Prime Minister Abdullah Ahmad Badawi earlier this month first announced the
development, saying it would transport Middle East oil across the north of the
Malaysian peninsula to East Asian countries.
Badawi witnessed the signing with Indonesian President Susilo Bambang Yudhoyono
on the sidelines of the annual World Islamic Economic Forum, aimed at boosting
cooperation among Muslim communities.
"When the entire project is completed in 2014, TRANSPEN pipeline will divert
about 20 pct of oil transiting through Straits of Malacca, proportionately
easing the congestion in the Straits," Trans-Peninsula said in a statement.
Half of the world's oil shipments currently pass through the 960-kilometre
Strait of Malacca, the busiest seaway in the world, which links the Indian Ocean
and the South China Sea.

Source: OSK Wirenews