Bursa Malaysia (KLCI) drop due to mild profit taking

KUALA LUMPUR: The KL Composite Index opened on a firmer footing Thursday heartened, perhaps, by gains in the previous two trading days. However, selling pressure emerged soon after as investors opted instead to lock in trading gains.

There is not much in terms of fresh leads for investors to act on, positively or otherwise. The Dow Jones Industrial Average closed almost flat overnight after the US Federal Reserve left interest rate unchanged. The decision, which ended a string of consecutive rate cuts since September 2007, was widely expected. The Fed also hinted that the next move for interest rates could be up although no time frame was mentioned.

Relevant bellwether indices in key Asian stock markets too traded within narrow ranges on Thursday in the absence of strong leads. Elsewhere, crude oil prices retreated some, to about US$134 (RM442.20) per barrel, after a report showed larger than expected US stockpiles of oil and fuel. There appears some nascent evidence that worldwide consumption is slowing down in the prevailing high price environment.

The KLCI failed to sustain momentum from the previous two trading days, slipping into the red not long after the opening bell. Market breadth also fell into negative territory as the day progressed while volume contracted slightly from the previous day.

On the positive note, the selling pressure appears well absorbed. The benchmark index eventually finished the day five points lower at 1,203.9 points. Leading the top losers was Telekom Malaysia International. The stock lost 30 sen to RM6.70. Other notable losers include BAT, Public Bank-foreign, Asiatic Development, Shell and SP Setia.

At the close, there were five losing stocks for every four gaining ones. Some of the day's most heavily traded counters were Gamuda, AirAsia and TMI. About 399 million shares changed hands. CCB, Genting and Berjaya Land were some of the day's bigger gainers.

Off Market Transactions On KLSE (26 June 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
AIRASIA	142,792,400	114,233,920	0.8
TGOFFS	6,300,000	12,285,000	1.95
SUCCESS	4,500,000	3,510,000	0.78
PANTECH	4,378,900	3,897,221	0.89
KZEN	3,737,600	1,046,528	0.28
METROK	3,000,000	3,120,000	1.04
DBE	2,000,000	470,000	0.235
TGOFFS-WA	1,799,700	2,447,592	1.36
PERISAI	1,400,000	1,794,000	1.281
DBHD	1,200,000	210,000	0.175
ATLAN-WA	1,000,000	870,000	0.87
ARREIT	1,000,000	1,040,000	1.04
BSDREIT	1,000,000	1,600,000	1.6
TM	1,000,000	3,640,000	3.64
WCT	1,000,000	3,340,000	3.34
LBICAP	560,000	336,000	0.6
AEONCR	500,000	1,930,000	3.86
WCT-PA	490,000	313,600	0.64
KNM	400,000	2,780,000	6.95
PICORP	306,500	236,005	0.77
FASTRAK	300,000	30,000	0.1
SWKPLNT	300,000	1,230,000	4.1
ATLAN	293,000	785,240	2.68
ANNJOO-WB	250,000	427,500	1.71
IOICORP	250,000	2,037,500	8.15
IJMPLNT	200,000	812,000	4.06
SARAWAK	200,000	652,000	3.26
THPLANT	200,000	756,000	3.78
WCT-WB	200,000	138,000	0.69
VADS	200,000	1,200,000	6
WANGZNG	187,000	87,890	0.47
SUNCITY-WA	150,000	66,000	0.44
KULIM	121,100	1,172,006	9.678
DRBHCOM	110,000	106,700	0.97
EDEN	100,000	46,500	0.465
GAMUDA	100,000	249,000	2.49
MBSB	95,000	160,200	1.686
KULIM-WB	75,800	560,920	7.4
TRACOMA	56,500	32,770	0.58
SIME	30,087	278,305	9.25
GENTING	19,000	110,200	5.8
KURNIA-WA	8,300	11,537	1.39
HEXAGON	2,800	4,844	1.73
BLDPLNT	1,500	6,600	4.4

Euro 2008 Finals Special Tips

Euro 2008 Tips for the Semi Finals this week in the Germany v Turkey and Spain v Russia matches are pretty straight forward to call. We are predicting that the final will between Germany and Spain as Turkey will hardly have eleven to select from following their injuries and suspensions. Germany have a real knack for winning these tournaments but we think once they get past Turkey they will have a much more difficult job in taking care of the Spanish in the Final at the Weekend. Spain were far superior to Italy but the Italians did what they do best and defended for a penalty shoot out and they got their just rewards with a defeat.

So a Germany Spain final await us and we have no doubts about who will take the Euro 2008 championship title. Spain have the class to finally come good as their seems to be a real harmony in the Spanish camp this time around and this will see them through, any team that can afford to leave out Fabregas has to be the winners of the competition.

It is simply incredible how each four years EURO brings unexpected results, promoting outsiders to favourites. In Portugal on EURO 2004 Greece were the squad no one expected to score a single goal, let alone advance from the group stage, and even the most optimistic fans didn’t even dream of winning of the tournament. The miracle has happened, and the Greek showed that nothing is impossible and brought hope to all future EURO participants that they can get the title.

The championship in Austria and Switzerland could end similarly. Only two weeks ago, even after the opening matches, few people gave chance to Turkey and Russia that they can achieve anything. Two weeks later, Turkey and Russia are playing in the semi-final and there aren’t many bookies ready to completely rule out the duels against Germany and Spain.

Russia vs Spain head to head stats:

Last 5 Russia matches:
21.06.2008	EURO 2008	Netherlands-Russia		1:1
18.06.2008	GROUP D	Russia-Sweden		2:0
14.06.2008	GROUP D	Greece-Russia		0:1
10.06.2008	GROUP D	Spain-Russia		4:1
04.06.2008	FRIEND	Russia-Lithuania		4:1

Last 5 Spain matches:
22.06.2008	EURO 2008	Spain - Italy		0:0
18.06.2008	GROUP D	Greece - Spain		1:2
14.06.2008	GROUP D	Sweden - Spain		1:2
10.06.2008	GROUP D	Spain - Russia		4:1
04.06.2008	FRIEND	Spain - USA		1:0

Last 5 Russia home matches:
18.06.2008	GROUP D	Russia-Sweden		2:0
04.06.2008	FRIEND	Russia-Lithuania		4:1
28.05.2008	FRIEND	Russia-Serbia		2:1
23.05.2008	FRIEND	Russia-Kazakhstan		6:0
17.10.2007	EURO Q	Russia-England		2:1

Last 5 Spain away matches:
18.06.2008	GROUP D	Greece - Spain		1:2
14.06.2008	GROUP D	Sweden - Spain		1:2
17.10.2007	FRIEND	Finland - Spain		0:0
13.10.2007	EURO Q	Denmark - Spain		1:3
08.09.2007	EURO Q	Iceland - Spain		1:1

Russia vs Spain head to head stats:
2004	EURO Q	Russia - Spain	0:1

Spain vs Russia head to head stats:
2005/2006	FRIEND	Spain - Russia	0:0

This Season Russia vs Spain head to head stats:
10.06.2008	GROUP D	Spain - Russia	4:1

KLSE market sentiment still cautious.

KUALA LUMPUR: Investor outlook for the equity market is still somewhat ambivalent judging by the relatively low market volume and narrow trading price range for most stocks. Shares on the Bursa Malaysia continued to tread water on Wednesday. There is no evidence of an imminent turnaround from the current lackluster trading conditions.

Uncertainties over the state of the US economy will likely continue to weigh on investors' mind worldwide for some time yet. The latest reading on US consumer confidence - where the index fell to its lowest levels since 1992 - underscored prevailing cautiousness.

With US home prices continuing to fall sharply and outlook on the employment market deteriorating, it is unsurprising that few are encouraged to put fresh money into stock markets. Elsewhere, oil prices are still holding near record levels. Crude oil futures traded on the New York Mercantile Exchange is currently hovering around US$137 (RM452.10) per barrel.

The KL Composite Index opened firmer and managed to stay in positive territory, thanks to gains by select blue chip stocks. On the other hand, market breadth was more neutral, moving in and out of positive territory throughout the day. At the close, gaining stocks edged ahead of losing ones by a ratio of about seven to five.

Leading the top gainers was BAT. The stock added 75 sen to RM44. Other notable gainers include DiGi, Public Bank, Bumiputra Commerce, Tenaga Nasional and Gamuda. The benchmark index added nearly nine points to finish at 1,209.1 points.

Market volume improved over the previous two days. About 448 million shares were traded Wednesday. AirAsia was the most actively traded stock. Its shares added 0.5 sen to 79.5 sen. Other heavily traded counters were Gamuda, Resorts World and Bumiputra Commerce. Kulim was the day's biggest loser. The stock fell 60 sen to RM9.70. Other losers were SP Setia, IOI Corp and Tanjong plc.

Off Market Transactions On KLSE (25 June 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
SYMPHNY	25,000,000	8,000,000	0.32
MOBIF	8,290,000	1,740,900	0.21
ANNJOO-WB	5,250,000	8,137,500	1.55
DBE	2,000,000	470,000	0.235
ITRONIC	1,376,600	963,620	0.7
UDSCAP	1,000,000	235,000	0.235
ASUPREM	900,000	468,000	0.52
LBS	540,000	194,400	0.36
PICORP	488,900	356,897	0.73
MINPLY	300,000	123,000	0.41
LBS-WA	296,000	23,680	0.08
SCIENTX	200,000	250,000	1.25
UTDPLT	161,352	2,226,658	13.8
KENCANA	137,400	250,068	1.82
ENGTEX	100,000	80,000	0.8
TIMECOM	60,000	20,760	0.346
RCI	40,600	43,848	1.08
CHEEWAH	26,300	11,572	0.44
GENTING	25,000	132,500	5.3
AFG	20,000	52,000	2.6

No fresh news to leads KLSE

KUALA LUMPUR: Investor sentiment on the Bursa Malaysia was somewhat ambivalent on Tuesday. Mild bargain hunting, following the recent market weakness, led the benchmark KL Composite Index higher. But buying support was not all that convincing for a sustained recovery.

Indeed, market breadth tipped into the red during the day before recovering at the close. Plus, trading volume remained on the thin side. Whilst there may be some nibbling, investors are by and large still very cautious on the near to medium term outlook for the market.

There was not much in term of fresh leads for the market. On the external front, Wall Street closed flat overnight. Most investors are waiting for the outcome of the US Federal Reserve's meeting on Wednesday where it is widely expected that interest rates will be left unchanged.

This could be the most definitive signal yet that the cycle of rate cuts is at an end - interest rates have been lowered by a total of 3.25% since mid-September 2007 to the current 2%. The market will be dissecting the Fed's accompanying statements for clues on what to expect next - specifically if rates will be heading up later in the year to counter rising inflationary pressures.

Fears are also growing that the eurozone is sliding towards stagflation, low growth combined with inflation. But crude oil prices are still hovering near record high levels and weighing on economies worldwide.

The KLCI opened on a firmer footing, rising to an intra-day high of 1,204.7 points before renewed selling pressure pared gains after the break. The benchmark index eventually finished some five points higher at 1,200.3 points.

At the close, there were 11 gainers for every 10 losers. Kulim was the top gainer for the day while Widetech was the biggest loser. Volume was fairly low at less than 398 million shares. AirAsia, Mulpha and Gamuda were among the most actively traded stocks for the day.

Off Market Transactions On KLSE (24 June 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
ARREIT	17,000,000	15,980,000	0.94
RUBHD	13,300,000	45,220,000	3.4
IOICORP	7,600,000	57,380,000	7.55
ENVAIR	5,736,700	1,606,276	0.28
ATLAN	1,884,500	5,050,460	2.68
KINSTEL	1,800,000	2,592,000	1.44
ATLAN-WA	1,075,000	935,250	0.87
TALAM	500,000	97,500	0.195
AXIS	330,000	594,000	1.8
DRBHCOM	250,000	235,000	0.94
EWEIN	180,000	153,000	0.85
LIENHOE	165,000	28,050	0.17
OSK	108,000	172,800	1.6
PA	100,000	86,000	0.86
TRANMIL	100,000	137,000	1.37
RHBCAP	99,500	463,670	4.66
CCK	65,000	117,000	1.8
PICORP	50,000	36,500	0.73
SWKPLNT	50,000	185,000	3.7
TOMYPAK	47,000	17,860	0.38
COMMERZ	38,300	345,466	9.02
TAANN	16,100	109,480	6.8
KIANJOO	13,800	16,284	1.18
RESORTS	13,000	39,780	3.06
MTRONIC	13,000	845	0.065
BAHVEST	11,000	5,940	0.54
GENTING	10,000	59,000	5.9
PENSONI	10,000	3,800	0.38
TANJONG	9,000	131,400	14.6
KULIM-WB	5,000	37,000	7.4
UEMBLDR	4,000	4,920	1.23
MAYBANK	4,000	31,400	7.85
YTLPOWR	3,600	7,128	1.98
SCOMI	2,000	1,360	0.68
MKLAND	2,000	500	0.25
DIALOG	1,000	1,340	1.34

KLSE trading at low volume with most of the investors sidelined

KUALA LUMPUR: Most investors are jittery on the outlook for equities in the near to medium term. There are big question marks over the health of the US and global economies as near-record high oil prices continue to fuel inflation worldwide. Uncertainties in the local political situation are acting as an additional deterrent to investors putting fresh money in the stock market right now.

Sentiment was hurt by more losses on Wall Street last Friday. The Dow Jones Industrial Average slumped below the psychological 12,000 level as investors worried over rising oil prices and more mortgage-related write downs for the financial sector.

Market volume on the Bursa Malaysia fell to one of its lowest levels recorded in the year to date. Just about 338 million shares changed hands Monday. There is no indication to suggest that the prevailing trading conditions will improve anytime soon.

Asian stock markets traded on a weaker footing at the start of the new week. Most relevant bellwether indices closed in the red. Chinese shares, in particular, fell sharply on fears of more credit tightening measures to rein in inflation.

The KL Composite Index opened lower and stayed in the red throughout the trading day. The benchmark index gave back all of last Friday's gains to close 11 points lower at 1,195.4 points. Gamuda was the most actively traded counter Monday. The stock closed 6 sen lower at RM2.13. Other actives include AirAsia, Bumiputra Commerce and IOI Corp.

Market breadth was also negative for the entire day. At the close, losing stocks outnumbered gaining ones by a ratio of about two to one. Some of the notable losers include DiGi, UMW Holdings, MAS, MISC, Sime Darby, RHB Capital and toll operator, PLUS. At the other end, Putrajaya Perdana was the day's top gainer. Its shares closed 4% higher at RM4.58.

Off Market Transactions On KLSE (23 June 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
UNICO	10,700,100	10,165,095	0.95
DFZ	4,780,642	21,512,889	4.5
HEVEA-WA	2,500,000	500,000	0.2
COCOLND	1,956,500	1,232,595	0.63
PERISAI	1,500,000	1,875,000	1.25
ASUPREM	1,350,000	729,000	0.54
ECOFIRS	1,020,000	158,100	0.155
UNIMECH	1,000,000	750,000	0.75
MEDAINC	911,800	100,298	0.11
L&G	850,000	276,250	0.325
TALAM	600,000	117,000	0.195
GENTING	500,000	2,964,500	5.929
SHCHAN-WA	500,000	36,500	0.073
PICORP	440,000	334,400	0.76
ARK	432,500	71,363	0.165
REDTONE	400,000	172,000	0.43
MENANG	300,000	66,000	0.22
TIMECOM	286,000	100,100	0.35
CENTURY	279,922	475,867	1.7
MAEMODE	213,000	298,200	1.4
BOLTON	200,000	150,000	0.75
ENCORP	147,000	120,540	0.82
YTLPOWR-WB	120,000	92,400	0.77
RESORTS	100,000	296,000	2.96
KNM	100,000	660,000	6.6
SEG	89,430	56,341	0.63
SUPERMX	80,000	112,000	1.4
OSK	50,000	80,000	1.6
COMMERZ	50,000	425,000	8.5
SCOMI	40,000	29,800	0.745
KURNIA-WA	39,000	50,310	1.29
MASTEEL	35,000	56,000	1.6
RHBCAP	23,000	94,300	4.1
MELEWAR-WA	19,000	4,484	0.236

US market hit 3-month low due to financials factor

NEW YORK: US stocks will be vulnerable to any further talk of dividend cuts, capital-raising plans or write-downs from the financial sector this week after a fresh wave of turmoil among banks pushed the market down to three-month lows.

Even the Federal Reserve's next interest rate decision due on Wednesday, when it is expected to leave rates unchanged, will take a back seat to any unexpected announcements out of Wall Street.

Stocks ended lower this week after a raft of bad news from the financial sector that left investors doubting the view that the first-quarter earnings had revealed the worst of the credit market crisis.

The Dow shed 3.8% this week, slipping below the 12,000 level for the first time since mid-March, when the market was reeling from the collapse of Bear Stearns. The S&P 500 ended 3.1% lower and the Nasdaq shed 2%.

Last Thursday, Citigroup's chief financial officer said the company could take substantial write-downs in the second quarter.

Merrill Lynch analysts said last Friday that large-cap regional banks' stocks are in "capitulation mode." The sector has already been hammered, with Fifth Third Bancorp slashing its dividend and announcing a plan to raise at least US$2 billion (RM6.6 billion). KeyCorp, another regional bank, said the week before it raised US$1.65 billion and halved its dividend.

"What we've seen from Key Bank, Fifth Third and others -- raising capital, cutting dividends -- that issue is not likely to go away and it's not out of the realm of possibility that it touches the large money center banks given what Citi said," said Paul Nolte, director of investments at Hinsdale Associates, in Hinsdale, Illinois. "The financial industry is an open wound that is still very sensitive."

Financials and other sectors may get some support on Wednesday when the Fed delivers its latest monetary policy decision. Interest-rate futures show traders are all but unanimous in their view that the Fed will leave its benchmark rate unchanged at 2%.

A string of Fed officials made rare comments earlier this month, speaking out about the weakness of the dollar and its dangerous impact on inflation, stoking concerns that policy-makers would hike rates, but media reports on Tuesday soothed those worries. Both The Wall Street Journal and Financial Times cited unnamed senior Fed officials saying that market expectations for a rate cut this month had been overly aggressive.

"We'll probably see some market stability after the Fed announces, said Fred Dickson, market strategist, director of retail research at DA Davidson & Co, Lake Oswego, Oregon. "With all the strong talk from the Fed, the market has responded as if they had raised rates without them actually having to do it."

A rate hike is seen as negative for stocks since it would have a near-term drag effect on the economy and could trigger more loan reserve losses and credit market write-downs in the banking system, Dickson said.

On the positive side, the Fed's hawkish rhetoric is seen as positive for the dollar and may in turn help stem the rise in oil prices, which has been a major headwind for equities.

"The market's going to continue to be very fixated on oil prices, which we think have a bias to the upside," said Matt Kaufler, portfolio manager and equity analyst at Clover Capital Management, Rochester, New York.

Higher oil prices may even prove to be detrimental for the energy sector as calls mount for the government to intervene, he added.

"It's certainly good for their profitability, but it's not good politically," said Kaufler. "They've become the whipping post for politicians, and the drum will only beat louder, the higher oil goes."

Where oil trades this week may be determined by emergency talks between oil companies, energy ministers and international organisations in Jeddah, Saudi Arabia yesterday.

The high cost of oil and surging food prices may be mentioned by companies reporting quarterly results. This week's scant earnings calendar includes a handful of consumer-related companies including Darden Restaurants tomorrow and cereal maker General Mills on Wednesday.

Two major home builders, Lennar Corp and KB Home, are set to report results on Wednesday and Thursday, respectively. Their comments, in addition to data on new- and existing-home sales, may shed light on whether the ailing housing market is nearing a bottom.