Wednesday, September 15, 2010

Market takes a pause, Genting slips

KUALA LUMPUR: Blue chips took a breather in early trade on Wednesday, Sept 15 as investors took profit after the rally with Genting among the decliners.

The FBM KLCI shed 3.65 points to 1,470.79 at 9.30am. Turnover was 78.31 million shares done valued at RM96.39 million. There were 120 gainers, 152 losers and 165 stocks unchanged.

HLG Research said in its market outlook that the FBM KLCI may continue to rise further in the short term amid domestic positive newsflow and in anticipation of further Ringgit strengthening (vs US$).

'Technically, the FBM KLCI is likely to remain overbought amid active participation in index-linked blue chips by foreign institutional and the formation of two bullish Marubozu candles. According to Bursa, daily trading participation by foreigners increased further to 36.8% on Sept 13 from 35.3% on Sept 9,' it said.

HLG Research however cautioned that investors should beware of more profit taking consolidations when the RSI reading (now at 86) approaches the 90 zone.

'On the upside, after breaching two tough resistance barriers of 1,450 and 1,472 (76.4% FR from top 1,525 and low of 1,300), the next targets are 1,490 (Jan 8, 2008's intraday high), the 1,500 psychological hurdle and all-time high of 1,524.'' The latter two should see heavier profit-taking capping upside,' it said.

At Bursa, YTL fell 10 sen to RM7.50 with 100 shares done. Genting, which staged a strong run-up on Tuesday, fell eight sen to RM9.91 with 350,500 shares done. Genting Malaysia and Genting's share prices surged on Tuesday following the positive developments in Genting New York LLC's (Genting NY) bid.

Genting NY, a unit of Genting Malaysia, had cleared the final hurdle to develop and operate a video lottery facility at the Aqueduct Racetrack in New York following the green light given by the New York State Comptroller.

Genting Singapore call warrants, GenS-CB jumped four sen to 19 sen and it was the most active with 13.21 million units done following an upgrade in its share price.

Jerneh was top top decliner, down 16 sen to RM3.12 with 2.32 million shares done, Jerneh-WA shed eight sen to RM1.69 with 2.54 million units done. However, Paramount rose 12 sen to RM4.26.

The Edge FinancialDaily reported that Jerneh Asia is set to become an even more cash-rich company, as it may pocket RM523.2 million cash from the proposed disposal Jerneh Insurance to ACE INA International Holdings.

Paramount also disposed of its 20% stake in Jerneh Insurance to ACE INA.

Tan Chong fell nine sen to RM5.51. Glove maker Top Glove shed nine sen to RM5.95 while Supermax fell eight sen to RM4.70.

Public Bank advanced eight sen to RM12.70. Ta Ann added six sen to RM4.81 and MISC five sen to RM9.

Mamee-Double Decker rose seven sen to RM3.52 as the company sticks to its multi-pronged strategy, with the aim of doubling revenue within the next five years. More details in The Edge FinancialDaily.

Gamuda-CM rose two sen to 17 sen and Gamuda-WA one sen higher to RM1.17. Gamuda will replace Tanjong plc on the 30-stock FBM KLCI on Sept 20. Gamuda would be deleted from the FTSE Bursa Malaysia Mid 70 Index and replaced by TA Global Bhd.

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