Daily Commentaries 22nd Sep 06

OSK Research

Technical View

The market did indeed rebound as we expected, to hit the 966 resistance level just at the close. Tenaga led the rally on comments from the Energy, Water and Communications Minister that Malaysia may consider an electricity exchange in the future and that the negotiations with IPPs may hopefully be completed by year end. Despite the uncertainty in Thailand, the Ministry of International Trade and Industry announced that it may retaliate against Thailand's decision not to lower tariffs for car imports from Malaysia, which may impact local car maker plans for export to Thailand. Celcom announced its latest strategic tie up with Google to allow its 3G and GPRS customers to surf the net while eBworx will be implementing its Digital Credit Management System for AmBank. US markets retraced yesterday as concerns about the economy linger while oil prices crept up after the recent slide. Despite the overseas retracement, for today, we expect another attempt at the strong 970 resistance level while support remains at the 957 pts level.