BURSA MALAYSIA: Share Prices End Firmer On Last Minute Buying

KUALA LUMPUR, July 24 (Bernama) - Share prices on Bursa Malaysia closed on a firm note Thursday with last minute buying interests in selected bluechips and lower liners, but gains were capped by losses in the plantation sector, said dealers.

At 5pm, the benchmark Kuala Lumpur Composite Index (KLCI) rose 2.18 points or 0.19 percent to 1,139.41 after opening 1.08 points lower at 1,138.33.

The key index traded between the 1,131.93 and 1,141.59 level throughout the day.

According to analysts, the market took a beating in reaction to news of the high inflation rate of 7.7 percent for June, which was twice May's 3.8 percent and generally higher than generally expected.

"I think the pause today is ahead of tomorrow's Overnight Policy Rate (OPR) decision on interest rates," said SJ Securities technical analyst, Phua Kwee Hock.

He said although there was a strong case to raise interest rates, Bank Negara Malaysia might not review it as Malaysia's economy is in a slowing phase and sectors like construction and housing would be hit more by escalating price in raw materials.

"But they will probably have to increase interest rates at the next meeting," he said.

Phua expects the CI to trade within a downside range of between 1,128 and 1,138 Friday.

At close, the Plantation Index fell 158.88 points to 6,166.88, the Industrial Index added 7.36 points to 2,449.0 and the Finance Index increased 65.95 points to 8,784.85.

The FBMEmas slipped 1.55 points to 7,559.66, the FBM30 dropped 10.87 points to 7,314.98, the FBM2BRD went down 80.80 points to 5,350.98 and the FBMMesdaq was 27.18 points lower at 4,254.11.

The slight decline in trading Thursday saw gainers leading losers by 327 to 240 while 234 counters were unchanged, 563 untraded and 38 suspended.

Volume Thursday dipped slightly to 566.68 million shares valued at RM1.213 billion from Wednesday's 656.377 million shares valued at RM1.179 billion

Volume on the Main Board dropped to 493.661 million shares worth RM1.196 billion from Wednesday's 550.735 million shares worth RM1.144 billion.

Turnover on the Second Board decreased to 24.279 million units valued at RM11.215 million compared with Wednesday's 46.505 million units valued at RM28.638 million.

But on the Mesdaq Market, turnover improved slightly to 28.377 million shares worth RM5.171 million from 27.215 million shares worth RM5.373 million previously.

Call warrants declined to 20.362 million shares valued at RM768,889 against 31.92 million shares valued at RM1.148 million Wednesday.

Direct business deals dropped to 21.018 million shares worth RM15.983 million from 72.278 million shares worth RM32.533 million previously.

AirAsia, a beneficiary of falling oil prices, led the actives as it closed unchanged at RM1.04, followed by IOI Corp which eased 20 sen to RM5.40 and MRCB which declined one sen to RM1.00.

MK Land fell half a sen to 20.5 sen while Tebrau gained half a sen to 49.5 sen.

Among the heavyweights, Sime Darby and Tenaga Nasional shed five sen each to RM8.05 respectively.

Maybank rose 25 sen to RM7.60, Public Bank slipped 10 sen to RM10.20 and Tanjong posted an 80 sen increase to RM13.60 while KLK went down 60 sen to RM13.00.

On a sectoral basis, consumer products accounted for 14.962 million shares traded on the Main Board, industrial products 64.268 million, construction 66.213 million, trade/services 162.682 million, technology 2.653 million, infrastructure 12.819 million, finance 35.742 million, hotels 2.589 million, properties 69.962 million, plantations 34.485 million, mining nil, REITS 915,500 million, closed/fund 106,500, ETF 200,800, and loans 26.06 million.