16-May-2008: Market continues to drift

Sentiment on the broader market remains ambivalent yesterday. The lack of definitive leads kept prices for most stocks within narrow trading ranges.

The closely monitored KL Composite Index stayed in positive territory for the better part of the day, held up by select blue-chip gains. However, market breadth reflected a slightly more negative stance.

Indeed, the ratio of gaining to losing counters was in the red for much of the day. But renewed buying momentum near the close helped shore up the number of gaining stocks. At the close, advancers outpaced decliners by roughly seven to six.

The KLCI ended the day 6.4 points higher at 1,294.2. Among the more notable gainers were blue chips like Bumiputra Commerce, Sime Darby, Public Bank and KL Kepong. Some of the day's top gainers were thinly traded, including the likes of IOI Properties, Narra Industries, Batu Kawan, Malayan Flour, BAT and Ge-Shen Corp.

Shares for Resorts World were the most actively traded for the day. Other heavily traded stocks include Intelligent Edge Technologies and RCE Capital. Market volume stood at about 590 million shares.

Pulai Springs and Golden Plus Holdings were among the biggest losers for the day. Prices for most steel stocks also ended lower yesterday. The sector has fared very well over the past week. Thus, the profit taking was not surprising.

The local bourse had been treading water for the past few days. Gains were quickly pared on profit taking with investor adopting a short-term view on the market. Such sentiment was mirrored in the US as well as key Asian financial markets. Most investors appear uncertain of whether the worst is really over or if we are merely waiting for the other shoe to drop. The prevailing conditions could drag on for some time to come.