Malaysian shares end morning mixed on profit-taking

Malaysian shares end morning mixed on profit-taking - UPDATE

	Published : Wed, 12 Sep 2007 06:25 By : Agencies Print this Story

KUALA LUMPUR (Thomson Financial) - Malaysian shares ended the morning session mixed Wednesday after opening higher in initial reaction to Wall Street's rally overnight, but investors were quick to lock in profits as gains may not be sustained.

Trading volume was low as Malaysian Muslims prepare for the start of the fasting month of Ramadan tomorrow.

The Kuala Lumpur Composite Index closed the morning up 3.76 points or 0.3 percent at 1,290.09, off a high of 1,296.83.

The FTSE Bursa Malaysia 30 large-cap index gained 37.41 points or 0.5 percent to 8,194.39, while the second board index edged down 0.12 point or 0.1 percent to 105.31.

Decliners led gainers 408 to 282, with 275 stocks unchanged and 367 counters untraded.

Volume traded was 502.104 million shares valued at 695.822 million ringgit.

'The market will remain choppy ahead of the Sept 18 FOMC meeting. Our market is still very much dependent on overseas markets,' said SBB Securities senior investment analyst Ng Jun Sheng.

'A lot of people are now sidelined, waiting for fresh leads,' Ng said. This is reflected by the dwindling volume, he said.

Barring any major shocks, share prices will probably see volatile trading as investors react to day-to-day news flows prior to the FOMC meeting, he said.

However, the Fed will likely continue to closely monitor upcoming statistics, including inflation data before making any decision.

By this week, the benchmark KLCI is likely to re-test 1,300 points, he said.

Meanwhile, Ng said the launching of the East Coast Corridor project next month will not have a big impact on the market but it will definitely boost oil and gas-related stocks.

Major oil and gas-related stocks are likely to rally ahead of the launch to create an oil and gas hub covering three states in the east of Peninsula Malaysia.

Index heavyweights were lower, Telekom Malaysia was down 10 sen or 1 percent at 9.65 ringgit, national power producer Tenaga Nasional lost 15 sen or 1.5 percent to 9.75 ringgit and the country's largest bank Maybank slid 10 sen or 0.9 percent to 11.50.

Kenanga Investment Bank said Wednesday it is keeping its 'overweight' rating for the plantation sector because crude palm oil prices are likely to remain robust.

Plantation stocks were mostly up, with IOI Corp up 15 sen or 2.7 percent at 5.70 ringgit, Kuala Lumpur Kepong (KLK) up 40 sen or 3.5 percent at 11.80 ringgit and United Plantations up 10 sen or 0.9 percent at 11.90 ringgit.

Another major plantation stock, IJM Plantation advanced 3 sen or 1.4 percent to 2.13 ringgit and Kumpulan Guthrie was flat at 6.15 ringgit.

Gaming group Tanjong led the gainers list, up 50 sen or 2.8 percent at 18.10 ringgit, while Lion Diversified, the holding company of Parkson departmental stores gained 20 sen or 1.9 percent at 10.80 ringgit.

The second-largest banking group by assets Bumiputra Commerce Holdings was up 10 sen or 0.9 percent at 10.70 ringgit.

Malaysia's Alam Maritim Resources, an offshore marine transportation services provider, gained 6 sen or 1.3 percent to 4.68 ringgit after the company said yesterday it has won a contract worth about 240.4 million ringgit from Petronas Carigali Sdn Bhd, the exploration and production arm of state oil company Petronas.

Affin Holdings gained 3 sen or 1.2 percent to 2.58 ringgit after saying that Hong Kong's The Bank of East Asia Ltd has received Malaysian government approval to acquire shares in Affin Holdings' banking and insurance subsidiaries through the subscription of up to a 15 percent stake in Affin.

Affin Bank is one of the smallest commercial banks in Malaysia, with 82 branches nationwide.

Malaysian infrastructure company Salcon declined 2 sen or 1.8 percent to 1.12 ringgit.

The company said Tuesday it has received a firm order from the local government of China's Fujian Province for a raw water pipeline project worth about 172 million ringgit.

Malaysian crane maker Favelle Favco gained 1 sen or 0.6 percent to 1.79 ringgit after receiving three purchase orders worth a combined 30.93 million ringgit.

At the end of the morning session, the ringgit was quoted at 3.5035/5065 to the US dollar.

Three-month interbank rates were at 3.55/60 percent.

(1 US dollar = 3.50 ringgit)

munfoo.hong@thomson.com

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Malaysian shares end morning mixed on profit-taking - UPDATE