Sunday, September 23, 2007

Upside Bias

KLCI ends down 0.2% at 1305.94 in moderate trade; volume at 1.1 billion, with market breadth positive as gainers beat decliners 485 to 296. Benchmark dragged down by weakness in Wall Street overnight, profit-taking ahead of the weekend on select blue chips that were higher in previous days; but recovery expected next week. KLCI tipped in 1300-1320 range. The market managed to close above 1300 for the second time in a row, which some consider a sign of underlying strength. If Wall Street goes higher tonight, all the ingredients would be in place for the market to test 1320 next week. Insurance-related stocks led gainers; Golden Plus +63.6% at MYR2.16 after confirming interest in PanGlobal Insurance, Idaman +25% at 30 sen; MAA +28% at MYR2.15; plantation stocks higher on rising palm oil prices, with IOI Corp +1.7% on MYR6; among decliners, Petronas Gas down 1.8% at MYR11.10, Maybank down 3.5% at MYR11.10, both on profit taking.


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