08 December 2009

0029 GMT [Dow Jones] Malaysia shares likely to be thinly traded in tight 1260-1270 range vs yesterday's close at 1265.36 (down 0.4%) as investors continue to lock in profits on rallies, say dealers. "The new week started on a very lethargic note. There's little reason to have any fresh exposure to equities right now," says one dealer. "With stock prices having rallied so strongly earlier (KLCI +45% year-to-date), it is understandable why many are keen to protect their gains rather than make big new bets," says InsiderAsia. Dealers say any buying interest likely to be centered on high dividend yield plays including consumer stocks such as tobacco manufacturers, Dutch Lady (3026.KU), Nestle (4707.KU) while oil & gas and plantation stocks may attract bargain hunting on weakness. (VGB)

0046 GMT [Dow Jones] Sime Darby (4197.KU) may edge up and test psychological resistance at MYR9.0 vs Monday close at MYR8.95, says dealer; world's largest listed plantation company said yesterday unit Sime Darby plantations acquired palm oil grower Nature Ambience (NASB) for MYR16.8 million. Purchase will enable group to develop oil palm plantations in Sarawak under state government's new concept of development for Native Customary Rights (NCR) land. NASB granted approval by state to be investor/developer for about 26,211 hectares for NCR land in Kapit and Julau. The JV will be held in the usual format with Sime Darby having a 60% stake and Pelita Holdings (acting for itself (10%) and as trustee (30%) for natives) holding balance 40%. "This is a long term proposal, and if successful, may open the doors for other similar JVs. However, it will take at least two years before any contribution to bottomline can be seen," says dealer. (VGB)