Daily Commentaries 24th August 06
OSK Research
Technical View
Morning Call by OSK
Volume continued to thin on the market with the current school holidays likely sapping retailer interest. Last minute buying of blue chips again saw the KLCI close in positive territory although both the 2nd Board and MESDAQ indices ended lower. For today, Magnum 4D, KNM and UEM World reported strong results while EON and Puncak Niaga were on the opposite side of the fence. Maxis and KLK tread the middle path as their results were within consensus. Aside from results, news includes Malaysia eliminating duties on 1926 products as part of the move towards an Asean economic union. July vehicle sales were down 5% y-o-y while Muhibbah Engineering looks to invest some US$30m to upgrade its Sihanoukville Airport in Cambodia. In other news, PKNS is offering RM3.50 a share to take Worldwide private while both MAS and AirAsia are in hot soup after complaints of delays in their flights. With BNM Governor stating that inflation is likely to ease in 2H, expectations will be for the BNM meeting this Friday to keep interest rates stable. Nonetheless, this positive news will likely be offset by the overnight fall in US markets on poor housing data which may give rise to fears that the US has over tightened its interest rate. We believe the market may still edge up slightly today with support now at 938 while resistance is at 953 pts.
Technical View
Morning Call by OSK
Volume continued to thin on the market with the current school holidays likely sapping retailer interest. Last minute buying of blue chips again saw the KLCI close in positive territory although both the 2nd Board and MESDAQ indices ended lower. For today, Magnum 4D, KNM and UEM World reported strong results while EON and Puncak Niaga were on the opposite side of the fence. Maxis and KLK tread the middle path as their results were within consensus. Aside from results, news includes Malaysia eliminating duties on 1926 products as part of the move towards an Asean economic union. July vehicle sales were down 5% y-o-y while Muhibbah Engineering looks to invest some US$30m to upgrade its Sihanoukville Airport in Cambodia. In other news, PKNS is offering RM3.50 a share to take Worldwide private while both MAS and AirAsia are in hot soup after complaints of delays in their flights. With BNM Governor stating that inflation is likely to ease in 2H, expectations will be for the BNM meeting this Friday to keep interest rates stable. Nonetheless, this positive news will likely be offset by the overnight fall in US markets on poor housing data which may give rise to fears that the US has over tightened its interest rate. We believe the market may still edge up slightly today with support now at 938 while resistance is at 953 pts.
posted by nomadhunter at 6:59 PM
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