15-05-2008: No fresh leads

KUALA LUMPUR: Sentiment on the Bursa Malaysia stayed relatively firm Wednesday. There wasn't much in terms of fresh leads for investors to act upon. We expect share prices will continue to drift sideways in the near term.

The KL Composite Index opened in positive territory. It rose to an intra-day high of 1,296.5 points in the early hours of trading. However, selling pressure pared gains in the afternoon session. The benchmark index eventually closed with gains of just over one point at 1,287.7 points.

Market breadth reflected investor ambivalence. The broader market traded on a more or less neutral footing. The ratio of gaining to losing counters fluctuated between the positive and negative zones throughout the day. At the close, the number of gaining stocks was just ahead of losing ones by roughly six to five.

Market volume increased some from the previous two trading days. About 606 million shares changed hands Wednesday. The most actively traded stock was AirAsia. Shares for the budget airline operator finished 3.3% lower at RM1.19. Operating conditions appear tough with high fuel prices. Competition with Malaysia Airlines also seems to have stepped up another level in recent days after the latter launched its "Everyday Low Fares" promotion.

Other actively traded stocks include Leader Steel, PECB, Liqua, Time dotCom and AMMB. Elsewhere, interests in steels stocks remained strong. Most steel counters closed with gains Wednesday.

Among the top gainers were Malaysia Steel Works, whose share price finished 9.4% higher at RM2.09. Despite recent gains, P/E valuation for the steel sector is still significantly below that for the broader market.

Other notable gainers for the day were Tanjong plc, Parkson, PPB and Leader Steel. At the other end, share prices for Public Bank and Bumiputra Commerce ended lower on mild profit taking activities.

In other world developments, crude oil prices remained stubbornly higher despite suggestions of slower demand going forward. Crude futures is currently trading near US$126 (RM403.20) per barrel.