KL shares slip 0.3pc at midday

MALAYSIAN shares were lower at midday today following some profit-taking after Monday's huge gains, dealers said.The Kuala Lumpur Composite Index slid 2.76 points, or 0.3 per cent, to 1,060.86 at the 12:30 pm local-time break, the first drop in four days.

Thirty-nine stocks declined and 35 rose on the 102-member gauge. June index futures climbed 0.5 per cent to 1,067.50.Dealers said losses were limited as buying interest was seen in second liner stocks and technology-based shares.

The dealers said trading was volatile as the market entered a consolidation phase following strong gains since the beginning of May.However, OSK Research said that the KLCI's consolidation was a healthy one as many other stocks recorded strong gains and there were no signs of panic selling.

Kinsteel Bhd led gains among steelmakers as prices of the metal climbed, buoying expectations of higher earnings this year. Kinsteel added 2.6 per cent to 97.5 sen, on course for their highest close since August 29.

Lion Industries Bhd gained 2.3 per cent to RM1.35 and Ann Joo Resources Bhd rose 2 per cent to RM2.02.Steel billet import prices from Southeast Asia have climbed 20 per cent while local steel bars have also rebounded to RM2,000 a ton from RM1,600, signaling a recovery in steel prices, Mak Hoy Ken, an analyst at AmResearch Sdn Bhd wrote in a report today.

AirAsia Bhd, Southeast Asia’s largest low-cost airline, fell 0.8 per cent to RM1.30, headed for its lowest since May 29. The company said it’s not averse to raising funds from shareholders through a rights offer or a placement to so-called long-term investors if it needs more cash to fund growth.

The carrier is monitoring “recent developments in the equity and debt capital markets and shall deliberate the various recapitalisation alternatives,” AirAsia said in a statement.MMC Corp, a port operator and power producer, rose 2.9 per cent to RM1.96, set for the highest close since November 10, after its port unit clinched an agreement to provide container-terminal services to CMA CGM SA, the world’s third-largest container shipping line.

The company’s stock rating was raised to “buy” from “trading buy” at OSK Research Sdn Bhd after the news.Scomi Group Bhd, an oil and gas services provider, gained 1.3 per cent to 75.5 sen, headed for its highest since May 13. Scomi agreed to sell its 60 per cent stake in Scomi Oilserve Sdn Bhd to SapuraCrest Petroleum Bhd for RM8.48 million (US$2.4 million). Scomi Oilserve will also pay a RM4.02 million loan owed to Scomi, bringing the total proceeds to RM12.5 million, it said in a statement. -- Bloomberg