KLCI continues rise to hit high of 1,363.40

Saturday May 5, 2007

PETALING JAYA: The Kuala Lumpur Composite Index (KLCI) soared to yet another high yesterday, as the recent spate of privatisation news whetted investors’ appetite for stocks.

Shares in Maxis Communications Bhd jumped RM2.30, or 17.7%, to RM15.30 after trade resumed yesterday on hopes that its main shareholder’s bid to take the country’s biggest cellular phone company private at RM15.60 per share would be successful.

Maxis is the seventh biggest stock on the 100-component KLCI.

The benchmark index climbed 20.61 points, or 1.53%, to 1,363.40 yesterday, its second consecutive record close.

Permodalan Nasional Bhd (PNB) kick-started the latest round of buyouts last week by making two consecutive bids for property developers Island & Peninsular Bhd and Petaling Garden Bhd.

“People are talking about the recent corporate exercise and some are speculating on which company would be the next target,” a dealer said. Shares in property firm DNP Holdings Bhd surged 28 sen, or 15%, to RM2.14 yesterday on recent reports that its controlling shareholder Wing Tai Holdings Ltd had increased its stake in the company to 55% as at end-April.

Elsewhere, shares in Tradewinds Corp Bhd shot up 34 sen, or 28%, to RM1.54, as volume swelled to 43.8 million. Tradewinds Corp has interests in hotel management and palm oil plantations.

Shares in related companies Tradewinds Plantation Bhd gained 28 sen, or 13%, to RM2.41 with 4.3 million units transacted, while sugar miller Tradewinds (M) Bhd rose 27 sen, or 9.2%, to RM3.20.

Meanwhile, shares in DiGi.Com Bhd fell 20 sen to RM21.30 yesterday from an all-time high, its first decline in six days.

The company on Thursday reported a net profit of RM246mil in the first three months ended March 31, the firm’s best quarterly net profit to date.

Other companies that reported record quarterly earnings included Tenaga Nasional Bhd, Bursa Malaysia Bhd and Public Bank Bhd.

Elsewhere in the region, stock measures in South Korea, Hong Kong, Singapore, Indonesia and Australia all rose to new records.

news adapted from TheStar.com.my

I have long time not see such a bullish and unbelievable strong market and I am really happy with it..... but I am too afraid of the burst bubble effect which will going to hurt a lot of un prepared people