Daily Commentaries 28th August 06
OSK Research
Technical View
Crossing over. The 950 level was broken last Friday on meliorated sentiment following the revelation of few positive corporate earnings. Sentiment was also aided by expectations that Bank Negara will keep interest rate unchanged that subsequently proved correct. SC is in the news over the weekend with the shortening of the time frame for companies seeking a listing to a month from 3 months previously. Petronas is in a quandary with allegations that it had not paid taxes in Chad and a notice of eviction served. In terms of results, it was a mixed bag with both Sime Engineering and KUB returning to the black in the current financial year and quarter respectively, EON Capital's earnings, whilst in line, were dampened by higher provisions and expenses while Affin's results came in below expectations. For the holiday-shortened week ahead, the market catalysts would come from the tail-end of the reporting season with few big caps such as MAS, Sime Darby, Proton and Bumi-Commerce scheduled to release their earnings. Investors are also likely to take cue from 2Q06 GDP numbers and Budget 2007 that will be released later this week. Precedence would suggest that a mild Budget rally may be in the offing but do not expect miracles as gains are likely to be shallow with external developments still very much a concern and the Dow retracing for the better part of last week. The 950 level is the level to watch today with next resistance at 953-958.
Technical View
Crossing over. The 950 level was broken last Friday on meliorated sentiment following the revelation of few positive corporate earnings. Sentiment was also aided by expectations that Bank Negara will keep interest rate unchanged that subsequently proved correct. SC is in the news over the weekend with the shortening of the time frame for companies seeking a listing to a month from 3 months previously. Petronas is in a quandary with allegations that it had not paid taxes in Chad and a notice of eviction served. In terms of results, it was a mixed bag with both Sime Engineering and KUB returning to the black in the current financial year and quarter respectively, EON Capital's earnings, whilst in line, were dampened by higher provisions and expenses while Affin's results came in below expectations. For the holiday-shortened week ahead, the market catalysts would come from the tail-end of the reporting season with few big caps such as MAS, Sime Darby, Proton and Bumi-Commerce scheduled to release their earnings. Investors are also likely to take cue from 2Q06 GDP numbers and Budget 2007 that will be released later this week. Precedence would suggest that a mild Budget rally may be in the offing but do not expect miracles as gains are likely to be shallow with external developments still very much a concern and the Dow retracing for the better part of last week. The 950 level is the level to watch today with next resistance at 953-958.
posted by nomadhunter at 7:58 PM
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