KL Composite Index End Mixed For The Year 2008.

SHARE prices on Bursa Malaysia closed the year 2008 on a mixed trend with the market barometer Kuala Lumpur Composite Index (KLCI) ending down 0.6 per cent on profit taking in selected heavyweights, led by Nestle and Maybank, dealers said. At 5 pm, the KLCI fell 4.88 points to 876.75 after seeing an intraday high of 884.73.

It had opened 1.44 points higher at 883.07 this morning. “The key index opened firmer and managed to gain grounds until noon due to window dressing activities but then investors quickly locked in profits in the afternoon session to end the last day of 2008 in a negative territory,” one of the dealers said. The Plantation Index advanced 24.89 points to 4,167.58, the Industrial Index climbed 76.09 points to 2,086.70 but the Finance Index went down 21.94 points to 6,853.75.

The FBMEmas lost 24.34 points to 5,726.46 and the FBM30 declined 40.51 points to 5,637.73. The FBMMesdaq, however climbed 21.59 points to 3,333.59 and the FBM2BRD advanced 33.11 points to 4,007.31. Losers outnumbered gainers by 273 to 240, while 235 counters were unchanged, 506 untraded and 28 others suspended.

Volume was moderate with 311.25 million shares worth RM523.04 million transacted compared with Tuesday’s 261.44 million valued at RM402.14 million. A dealer said the local market was generally quiet as most investors stayed on the sidelines amid the year-end holiday. However, some plantation-related stocks hogged the limelight on the back of firmer prices for commodities, he said.

Crude palm oil price reached a 10-week high of RM1,671 per tonne yesterday after languishing around RM1,400 two months ago. Boustead Holdings rose 22 sen to close the year at RM3.42 while Ta Ann Holdings and Tanjong added 20 sen each to RM3.60 and RM13.30 respectively.

Among actives, Damansara Realty and Progressive Impact perked half sen each to 17.5 sen and 47 sen respectively while Eastern and Oriental added three sen to 43 sen, KNM Group was unchanged at 40.5 sen and Affin Holdings firmed 17 sen to RM1.52.Of heavyweights, Maybank lost 20 sen to RM5.10, Tenaga Nasional went down five sen to RM6.25 and Nestle declined 25 sen to RM27.00.

The Main Board volume rose to 269.38 million shares worth RM511.56 million compared with 206.81 million shares worth RM389.39 million yesterday.Turnover on the Second Board fell slightly to 23.05 million shares worth RM6.55 million versus 24.22 million shares worth RM7.55 million previously.

Volume on the Mesdaq market declined to 9.3 million shares worth RM3.7 million from 14.8 million shares worth RM3.7 million. Warrants went down to 8.13 million shares worth RM704,689 from 14.92 million shares worth RM1.32 million previously. - Bernama

KL Composite Index Gain 14.28 Points.

MALAYSIA'S Kuala Lumpur Composite Index rose 14.28, or 1.7 per cent, to close at 881.63, its biggest advance since December 18. The market was closed yesterday for a public holiday. The gauge has fallen 39 per cent this year, set for its steepest annual decline since the 1997 Asian financial crisis, when it slumped 52 per cent.

The Finance Index climbed 118.87 points to 6,875.69, the Plantation Index went up 63.40 points to 4,142.69 and the Industrial Index was 37.24 points higher at 2,070.61. The FBMEmas gained 84.46 points to 5,750.80 and the FBM30 surged 100.76 points to 5,678.24.

The FBMMesdaq meanwhile slipped 118.70 points to 3,312.00 and the FBM2BRD declined 18.66 points to 3,974.20. Gainers outnumbered losers by 270 to 211, while 123 counters were unchanged, 571 untraded and 49 others suspended. A total of 261.44 million shares worth RM402.14 million were traded today compared with last Friday’s 181.09 million shares worth RM156.35 million.

The market was closed in conjunction with the Awal Muharram holiday yesterday. Sime Darby Bhd, Malaysia’s largest palm-oil producer, added 10 sen, or 2 per cent, to RM5.20, the most since December 18. Kuala Lumpur Kepong Bhd climbed 10 sen, or 1.1 per cent, to RM8.85. IOI Corp rose 8 sen, or 2.3 per cent, to RM3.58. Palm oil futures in Malaysia jumped as much as 4.5 per cent amid gains in crude oil yesterday.

Bumiputra-Commerce Holdings Bhd rose 10 sen, or 1.7 per cent, to RM6, its highest level since December 19. CIMB Bank Bhd, the banking unit of the country’s second-biggest financial group, said it raised RM1 billion (US$287 million) for its tier-1 capital, part of a US$4 billion debt sale program.

Gamuda Bhd climbed 6 sen, or 3.3 per cent, to RM1.90, the highest since December 18. MMC-Gamuda, a joint venture with MMC Corp that’s building the US$12.5 billion Ipoh-Padang Besar double-track railway project in Malaysia, last week submitted a detailed proposal to acquire land for the development after the state government of Penang ordered it to stop work, a local newspaper reported on December 27, citing a statement.

The proposal covers how the company plans to acquire land for the development of the 63-kilometer (39-mile) line in Penang state, which forms part of the railway network, the report said. Hong Leong Bank Bhd added 10 sen, or 2 per cent, to RM5.15, the highest since November 10.

The Malaysian bank received a license from Vietnam’s central bank to open a 100 per cent foreign-owned bank in the country. The bank, called Hong Leong Bank Vietnam Ltd, will have registered capital of 1 trillion dong (US$57 million), according to a statement posted on the State Bank of Vietnam’s Web site.

Tenaga Nasional Bhd advanced 25 sen, or 4.1 per cent, to RM6.30 , its largest increase since October 13. The country’s biggest power producer said it started talks to buy 40 per cent of Kapar Energy Ventures from Malakoff Bhd, a unit of MMC. YTL Corp, Malaysia’s biggest builder, gained 10 sen, or 1.4 per cent, to RM7.10, its highest close since December 18, after a Business Times report said the company is planning its second real estate investment trust and is seeking acquisitions.

The company plans a REIT that will comprise its hotels and resorts and is looking to buy “quality” assets next year to take advantage of depressed prices sparked by the global financial crisis, the report stated, citing an executive director - Agencies

Article from Business Times.com

Window Dressing Rally Runs Out Of Steam

Technically Speaking by S.N.LOCK - Article from Business Times

SHARE prices on Bursa Malaysia consolidated lower in lack lustre trading over the last four trading days. The Kuala Lumpur Composite Index (KLCI) continued to stay below its support of 900 points when it closed at 867.35 yesterday.

The KLCI opened at 876.88 before rebounding to its intra-day high of 888.03. It eased back all the way to close at 867.35 on Monday, giving a day-on-day loss of 2.97 points, or 0.34 per cent. Share prices on Bursa Malaysia opened at overnight levels before drifting lower on Tuesday. Last hour trading sent the KLCI back up to close at 871.16, giving a day-on-day loss of 2.27 points, or 0.26 per cent.

The index extended its follow-through consolidation for the third consecutive days on Wednesday. It closed at 869.62 points, giving a day-on-day loss of 1.54 points, or 0.18 per cent. The composite index continued to drift aimlessly immediately after the Christmas holiday. It closed at 867.35 yesterday, giving a day-on-day loss of 2.27 points, or 0.26 per cent.

On the foreign front, the Dow Jones Industrial Average (DJIA) extended its follow-through consolidations over the last three trading days. The DJIA closed at 8,468.48 points on Wednesday, giving a three-day loss of 110.63 points, or 1.29 per cent.

The tech stock heavy Nasdaq Composite Index continued to stay above its critical support of 1,500. It closed at 1,524.90 points on Wednesday, giving a three-day loss of 39.42 points, or 2.52 per cent. Tokyo stocks continued to hold on to its technical composure over the last four trading days. The Nikkei 225 Index closed at 8,739.52 points yesterday, giving a week-on-week gain of 151.00 points, or 1.76 per cent.

The Hong Kong stock market breached its support of 15,000 over the last three trading days. The Hang Seng Index closed at 14,184.14 points on Wednesday, posting a week-on-week loss of 943.37 points, or 6.24 per cent.

Back on Bursa, the KLCI closed at 867.35 points yesterday, giving a week-on-week loss of 9.05 points, or 1.03 per cent. The FTSE Bursa Malaysia Second Board Index added 5.98 points, or 0.15 per cent, to 3,992.86 level while the FTSE Bursa Malaysia Mesdaq Index gained 160.22 points, or 4.90 per cent, to 3,430.70 level.

Following are the readings of some of the KLCI's technical indicators:

Moving Averages: The KLCI continued to stay above its 10-, 20- and 30-day moving averages while it continued to stay below its 50-, 100- and 200-day moving averages.

Momentum Index: Its short-term momentum index continued to stay precariously above the support of its neutral reference line.

On Balance Volume (OBV): Its short-term OBV trend stayed above the support of its 10-day exponential moving averages.

Relative Strength Index (RSI): Its 14-day RSI stood at the 49.29 per cent level yesterday.

Outlook

The KLCI's brief technical rebound hit its intra-week high of 888.03 on Monday, moving into the confines of this column's envisaged support zone (879 to 913 levels).

Subsequent technical pullbacks sent the index to its intra-week low of 862.29 on Wednesday, staging a re-test of this column's envisaged support zone (839 to 873 levels).

Chartwise, the composite index continued to stay below the support of its immediate downside support (See KLCI's weekly chart - A1:A2) for the sixth consecutive week. It continued to stay below its intermediate-term downtrend (A7:A8) yesterday.

The index's daily trend continued to stay below its intermediate-term downtrend (See KLCI's daily chart - B3:B4). It continued to stay below its intermediate-term downside support (B1:B2). The KLCI's daily and weekly fast MACDs (moving average convergence divergence) continued to stay above the support of their respective slow MACDs at the market close yesterday. Its monthly fast MACD continued to stay below its slow MACD.

The composite index's 14-day RSI stayed at 49.29 per cent level yesterday. Its 14-week and 14-month RSI stayed at 29.36 and 29.10 per cent levels respectively. The KLCI staged a failed attempt in trying to take out the resistance of its 50-day moving averages. A decisive break of the 50-day moving averages is likely to signal a major trend reversal. Until then, it will continue to consolidate within range-bound trading activities.

As it turned out, the traditional year-end window-dressing rally seemed to have run out of steam. With that, the KLCI will continue to consolidate within range-bound activities. Next week, the KLCI's envisaged resistance zone hovers at the 870 to 904 levels while its immediate downside support is at the 830 to 864 levels.