KLCI up 19.44 to end the day at 1298.36

KLCI looks poised to beat the all-time high set in 1994

BURSA Malaysia has been enjoying a fairly good run these past few months, propelling the bellwether KL Composite Index (KLCI) to a 13-year high yesterday and bringing it within striking distance of the historical peak of 1,332.04 that was set on Jan 5, 1994.

Ask any investor about his stock portfolio status and chances are he'll give you an identical answer: "So far so good."

But the question of how high and the sustainability of the prevailing upward momentum will continue to bog his mind, thus prompting us to track back the local market.

Based on the long-term daily bar chart, Bursa had its first taste of a "superbull" rally way back in 1993. Many witnessed the key index convincingly penetrating the magical 1,000-mark and charging to an all-time high on Jan 5, 1994 after a three-year congestion around the 450 to 600-point band.

The KLCI then reversed trend on profit-taking owing to valuation reasons, violating the important 1,000-point psychological level on several occasions with the most significant during the Asian financial crisis, dragging it to a low of 261.33 points on Sept 1, 1998.

It took the market almost two painstaking years to pick itself up to 1,021.20 on Feb 18, 2000, only to go into another downward spiral.

Having found the bottom at 547.72 points on April 10, 2001, Bursa again gradually recovered to 1,000 points on Nov 7, 2006 and moved on to trigger a major breakout of the 1,021.20-point level to reach where it is today.

On record, Bursa had two obvious runs previously: the superbull in 1993, from 600 points to 1,332.04, gaining a total of 732 points; and the "tech fever" from late 1998 to early 2000, rising from 261.33 points to 1,021.20 for a massive gain of 760 points.

Analysing the present upswing, the benchmark index only started powering ahead after breaking out of the 900 to 950-point congestion level late last year, the chart's formation of which was relatively similar to the one in 1993.

Assuming the current upward momentum is comparable to the two previous big moves, rising more than 700 points each time, the upside objective of this ongoing rally from the congestion area would be around 1,600 or 1,650 points.

Separately, the extended support (A1-A2) and returning lines (B1-B2) of the upward channel before the superbull rally were aimed at 1,520 and 1,760 points respectively.

If history is any guide and technical analysis a perfect tool for stock investing, then investors can look forward to a more exciting journey ahead, as all the pointers suggest the KLCI has an upside target of at least 1,520 points eventually.

Obviously, some might think it is a little too optimistic, but it is possible given that the Government has come out with positive measures to boost the economy, which augurs well for the stock market in the long term.

After all, how many had actually thought the KLCI would hit 1,332.04 in 1993? Let's enjoy the party for now.

URL: http://biz.thestar.com.my/news/story.asp?f...76&sec=business

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Added on April 10, 2007, 8:39 amKLCI laggards in various market sectors

PETALING JAYA: It may be harder these days to find undervalued stocks, especially among index-linked counters, given the run-up in the prices of many stocks in the current market rally.

As investors have generally stayed away from the motor sector amid the slowdown in domestic car sales, stocks like Proton Holdings Bhd, DRB-HICOM Bhd and MBM Resources Bhd have under-performed the KLCI.

Moreover, Proton's protracted search for a foreign partner further dampened sentiment in the stock.

Aseambankers head of research Vincent Khoo said buying interest had been based on news flow, which may explain why some index-linked stocks had barely moved.

He cited Tenaga Nasional Bhd, KFC Holdings (M) Bhd and MISC Bhd as some of the laggards.

According to an Aseambankers report, while the banking sector remained "healthy", the excitement had been solely on the merger and acquisition angle.

"The operating environment is expected to be more competitive and challenging with continuous liberalisation in the sector," it said.

Shares in Malayan Banking Bhd (Maybank) and Hong Leong Bank Bhd have appreciated only 9.3% and 9% respectively since the beginning of the year.

Meanwhile, Petronas Gas Bhd (PGas) has yet to join the oil and gas play although the stock is deemed "a good proxy" for unlisted parent Petroliam Nasional Bhd (Petronas).

OSK Investment Bank said in a report that the future earnings of PGas would be driven by the development of the Kimanis-Bintulu pipeline.

A surprising laggard is timber player WTK Holdings Bhd, which has appreciated only 11.8% year-to-date. The company's shares have yet to fully recover from the selldown in February after touching a year's high of RM9.30 on Feb 23. It closed 10 sen down at RM8.50 yesterday.

OSK estimated the stock's fair value at RM11.40 based on a price/earnings (PE) of 12.5 times for the fiscal year ending Dec 31, 2008.

"We like WTK for its strategic investment that enlarges its exposure to high-margin floor-based plywood products. Demand for such products is expected to remain firm given the sustainable economic recovery in Japan," the research house said.

It said WTK's acquisition of premium floor-based plywood maker Linshanhao would enhance its exposure to the market for those products while riding on rising prices and strong demand in Japan.

URL: http://biz.thestar.com.my/news/story.asp?f...57&sec=business

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Added on April 10, 2007, 8:41 amKLCI at 13-year high

PETALING JAYA: The Kuala Lumpur Composite Index (KLCI) came within an earshot of the all-time high reached in 1994 as shares soared in the on-going rally on the stock market.

The KLCI closed up 19.44 points at 1,298.36, after briefly crossing the 1,300-point level during the trading session. The highest close for the KLCI was on Jan 5, 1994 when the benchmark index was at 1314.16.

Prime Minister Datuk Seri Abdullah Ahmad Badawi expressed happiness that the KLCI had risen close to its all-time high.

He said it was a sign that investor confidence in the stock market "is getting higher and stronger."

"It's good for our economy," he told reporters yesterday.

Foreign buying of blue chip stocks has sent shares skyrocketing since the start of the year. A rallying stock and bond market has sent the ringgit sharply higher against the US dollar.

At 5pm yesterday, the ringgit was RM3.447 against the US dollar.



URL: http://thestar.com.my/news/story.asp?file=...3848&sec=nation

This post has been edited by David83: Apr 10 2007, 08:41 AM

KLCI broke 1300 level today to close at 1306.34 after rose 7.98

KLCI is still maintaing above 1300 level at 1306.22 after dropped 0.12 ... perhaps a higher level to be set.

Genting downsized its share 4X.XX to 9.25 after slipt into several components.

KLCI gained 0.97 to close at 1307.19

KLCI gained 1.01 today to close at 1308.20

Sorry no update yesterday ... Streamyx was down.

Today KLCI performance: +7.35 @ 1330.26

KLCI dropped 1.63 to close the day at 1328.63

A huge drop of 22.27 today for KLCI and closed at 1306.36

Malaysian stocks fall Thursday

KUALA LUMPUR: Malaysia's key stock index fell Thursday on broad-based selling following recent sharp gains.

The Kuala Lumpur Composite Index of 100 blue chips dropped 1.7 percent to 1,306.36 points, off a low of 1,291.64.

Losers outpaced gainers 917 to 109.

Dealers said the market was also weighed down by the weaker sentiment in regional bourses and predicted pre-weekend profit-taking would further depress the market.

Among decliners, plantation stocks were the worst hit with IOI Corp. down 6.1 percent at 27 ringgit, Kuala Lumpur Kepong lost 3.6 percent to 13.40 and Kumpulan Guthrie shed 5.4 percent at 6.15.

Other top losers include property developer Bandar Raya which fell 8.4 percent to 2.18 ringgit, stock market operator Bursa plunged 5.3 percent to 10.70 and casino operator Genting down 2.9 percent at 8.40. - AP

URL: http://biz.thestar.com.my/news/story.asp?f...53&sec=business

KLCI up by 9.01 and settled at 1315.37



This post has been edited by David83: Apr 23 2007, 05:56 PM

KLCI performance on 23rd April: +5.99 @ 1321.36

edifgrto, I'm not an analysist! Sorry can't do that. Later, I might be flamed.

KLCI 24 April perforamce: -3.86 @ 1317.50

Not yet ... still gathering necessary knowledge before jumping to the bus.

KLCI 25 April performance: -1.53 @ 1315.97

KLCI closed on 26th April.

KLCI performance on 27th April: +8.8 @ 1324.77

KLCI performance on 30th April: -2.52 @ 1322.25

KLCI performance on 3rd May: 20.54 @ 1342.79

KLCI performance on 4th May: 20.61 @ 1363.40

KLCI continues rise to hit high of 1,363.40

PETALING JAYA: The Kuala Lumpur Composite Index (KLCI) soared to yet another high yesterday, as the recent spate of privatisation news whetted investors' appetite for stocks.

Shares in Maxis Communications Bhd jumped RM2.30, or 17.7%, to RM15.30 after trade resumed yesterday on hopes that its main shareholder's bid to take the country's biggest cellular phone company private at RM15.60 per share would be successful.

Maxis is the seventh biggest stock on the 100-component KLCI.

The benchmark index climbed 20.61 points, or 1.53%, to 1,363.40 yesterday, its second consecutive record close.

Permodalan Nasional Bhd (PNB) kick-started the latest round of buyouts last week by making two consecutive bids for property developers Island & Peninsular Bhd and Petaling Garden Bhd.

"People are talking about the recent corporate exercise and some are speculating on which company would be the next target," a dealer said.

Shares in property firm DNP Holdings Bhd surged 28 sen, or 15%, to RM2.14 yesterday on recent reports that its controlling shareholder Wing Tai Holdings Ltd had increased its stake in the company to 55% as at end-April.

Elsewhere, shares in Tradewinds Corp Bhd shot up 34 sen, or 28%, to RM1.54, as volume swelled to 43.8 million. Tradewinds Corp has interests in hotel management and palm oil plantations.

Shares in related companies Tradewinds Plantation Bhd gained 28 sen, or 13%, to RM2.41 with 4.3 million units transacted, while sugar miller Tradewinds (M) Bhd rose 27 sen, or 9.2%, to RM3.20.

Meanwhile, shares in DiGi.Com Bhd fell 20 sen to RM21.30 yesterday from an all-time high, its first decline in six days.

The company on Thursday reported a net profit of RM246mil in the first three months ended March 31, the firm's best quarterly net profit to date.

Other companies that reported record quarterly earnings included Tenaga Nasional Bhd, Bursa Malaysia Bhd and Public Bank Bhd.

Elsewhere in the region, stock measures in South Korea, Hong Kong, Singapore, Indonesia and Australia all rose to new records.

URL: http://biz.thestar.com.my/news/story.asp?f...07&sec=business