Daily Commentaries 29th Sep 06

Yesterday, the market again made another attempt at the 970 pts before succumbing to some profit taking activities as volume remained moderate. For today, MRCB announced RM391m worth of construction and development contracts in the Middle East. Supermax explained that its merger plans with Seal Polymer were called off because both companies could not agree on the price. The Lion Group is restructuring its holdings of the Parkson retail business under Amalgamated Containers although this will still be almost completely owned by Lion Diversified. And finally ECM Libra Avenue is planning a VSS to cut 23% of its workforce. Another announcement that should affect the market is that UMNO elections have been postponed till after the general elections. This news will likely remove uncertainties on the country’s leadership going into the general elections. With US markets posting moderate gains yesterday, we expect the KLCI to make another attempt at the 970 resistance level. Initial support is at the 966 pts level.