Tuesday, January 15, 2008


KLCI ends down 0.1% at 1505.71 in moderate volume off intraday high of 1524.28 on profit-taking; market breadth ended negative with decliners outpacing gainers 568 to 201 as investors took cue from softer regional markets to lock in profits from recent gains. Benchmark expected to trade in 1490 to 1510 range tomorrow. Investors are likely to take their cue from Wall Street's performance tonight. The market is undergoing a mild consolidation and this may persist for the next few trading sessions.

Palm-oil stocks may be hit by possible EU ban on imports of certain biofuels, Credit Suisse says in note today. If EU were to ban palm-biodiesel, there could be a knee-jerk reaction to plantation stock prices, as the key plantation stocks have run up by 16%-39% over the past month. But adds palm oil would still be imported into EU as a food stuff, palm-biodiesel only small fraction of EU imports. Reiterates Overweight call on Asia palm oil sector; "we believe that the underlying fundamentals for palm oil demand are still strong. Any weakness in plantation share prices is an opportunity to buy.


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