KLSE winning streak into 5th day

  • Business
  • Friday, 17 Jan 2003


THE KLSE extended its winning streak into a 5th consecutive day yesterday, with news of corporate takeovers providing further mo-mentum to an already buoyant market. 

The Composite Index (CI) rose nearly2 points to 670 on volume of 475 million shares. The benchmark index has risen 7% since last Friday. 

“Volume is still strong, meaning that investors are convinced that the market has the legs to go higher,'' OSK Research senior manager Pankaj Kumar said. 

Analysts said that although the market would eventually take a breather, the momentum was positive as it was absorbing the heavy volume transacted on Monday. 

They said news that Valuecap had started operations provided the initial spark, and the news of Sapura Telecomunications Bhd's purchase of Crest Petroleum Bhd and Malaysian Resources Corp Bhd's deal to buy a 25% stake in UDA Holdings Bhd lifted an already ebullient market. 

According to the research head of a local brokerage, the combination of good news and corporate activity is providing fresh leads. 

Analysts said that speculative interest had been responsible for a lot of the trading volume, but some of them saw such speculation as healthy as it generated interest in equities. 

Analysts said that interest in the KLSE was expected to be good in the immediate term but noted that the prospects of war in Iraq and continued sluggish economic conditions in the US would have to be dealt with. 

“It is a great concern,'' TA Se-curities research head C.K. Ngu said. 

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