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Thursday, May 8, 2008

08-05-2008: KLCI trades higher On 07-05-2008 WED



Sentiment on Bursa stayed on a positive footing yesterday. Shares traded broadly higher for much of the day.

The KL Composite Index opened in positive territory, gaining momentum throughout the morning session. Some profit-taking activities emerged in the later part of the day. The benchmark index came off its intra-day high but still closed 11 points higher at 1,287.2.

Market breadth was mostly positive although it did dip into the red in the late afternoon before recovering at the close. Gaining counters outnumbered losing ones by a ratio of roughly nine to seven.

There wasn't much change in terms of market volume from the previous trading day. About 640 million shares changed hands yesterday. Keladi Maju was the most heavily traded stock for the day. Other actively traded counters include Telekom Malaysia, IJM, Kosmo Technology Industrial, TM International and Kinsteel.

AEON was the biggest gainer. The stock added RM1.10 sen to finish at RM10.90. AEON, which owns and operates the Jusco retail outlets as well as several shopping malls in the country, announced plans for a 1-for-1 bonus issue. The entitlement date will be fixed at a later date.

Shares for Southern Steel gained for the second straight day after releasing strong 1Q08 financial results. The stock added another 21 sen to RM2.81. Other steel stocks like Ann Joo, Masteel and Kinsteel also traded higher on the back of improved outlook for the sector.

On the other hand, rising crude oil prices may yet pressure global economic growth going forward. Crude oil futures traded on the New York Mercantile Exchange touched fresh record high of US$122.73 (RM390.29) per barrel.

Concerns over production shortfalls in Russia and Mexico as well as the weaker US dollar helped bolstered oil prices. There appears no indication at the moment to suggest that oil prices will see a sustained retreat. Indeed, some analysts are predicting further gains in the coming months.

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