Wednesday, February 07, 2007

Market Commentary

Bursa had record turnover of 2.3468 billion shares today. The KLCI closed at 1,243.57, up 6.94 points from yesterday’s close. Though, no weakness is detected in the uptrend, now is not the time to throw caution to the wind.

AIGB closed at 1.92 with another long white candle. Volume traded at 117,300 lots was slightly lower than that of yesterday. The chart looks bullish, and if it can clear 1.94 convincingly tomorrow, it has a good chance to surpass its all time high at 2.00

‘Bleeding’ at LKT appears to have abated. Accordingly to Kenanga Research, the 4th Q earnings were likely to show a loss of 6m due to forex losses and one-time inventory cut-off. It appeared that there were some internal problems as reflected by the sudden resignation of its former president. Fundamentally, the company is sound with earnings per share revised to 39c for 2006, 51c for 2007 and 65c for 2008. The target price is 4.20.

Ornastel has announced a first and final dividend of 10c less 27% tax. At 1.20 or below, there is value for money. Today it closed at 1.18. It is worthwhile to consider buying.

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