Profit Takings May Hinder KL Stocks

Soft Start Tipped For Malaysia Stocks The Malaysian stock market has finished higher now in consecutive trading days, gathering more than 20 points or 1.3 percent in the process. The Kuala Lumpur Composite Index finished just above the 1,520-point plateau, although now investors are bracing for renewed consolidation when the market kicks off trade on Monday.

The global forecast for the Asian markets is slightly negative on lingering concerns over the rising price of crude oil and tensions in Libya and elsewhere. Investors are flocking to safe haven gold for support, while financials, properties and airlines are expected to remain soft. The European markets were mixed on Friday and the U.S. bourses were down - and the Asian markets are expected to fall right in between.The KCLI finished sharply higher on Friday, supported by major gains from the financial shares and plantation stocks, as well as more modest upside from the industrials.

For the day, the index added 15.73 points or 1.04 percent to finish at 1,522.61 after trading between 1,519.28 and 1,529.41. Volume was 1.13 billion shares worth 1.9 billion ringgit. There were 674 gainers and 148 decliners, with 240 stocks finishing unchanged.

Among the actives, Kuala Lumpur Kepong, Sime Darby, IOI Corporation, Maybank, Public Bank, RHB Capital and Maxis all finished higher, while Axiata and CIMB Holdings ended unchanged.
The lead from Wall Street is fairly pessimistic as stocks fell on Friday, with surging oil prices amid ongoing chaos in the Arab world leaving traders unwilling to remain long in equities ahead of the weekend. The overseas chaos drove crude oil above the $104 a barrel mark, overshadowing a strong February jobs report.

In economic news, Malaysia's exports were up 3 percent year-on-year in January to MYR 54.04 billion, the Department of Statistics said on Friday - but the rate of growth was smaller than the 4.5 percent growth forecast and last month's 4.6 percent rise. Overall imports grew at a slower pace of 13.5 percent annually to MYR 44.85 billion in January. Economists had expected the import growth to rise to 14.6 percent from 11.5 percent.
The trade surplus totaled MYR 9.19 billion in January, marking the 159th consecutive month of trade surplus since November 1997. But the trade surplus decreased from MYR 9.7 billion posted in December.

HAPPY TRADING