Daily Commentaries 5th September 06
OSK Research
Technical View
The market closed shy of the previous high recorded in mid-May on the back of the strong Budget infused blue-chip buying. The broader market, however, witnessed sporadic selling of lower liners indicating the more wary sentiment among retailers. Major headlines include MMC’s RM8bn Islamic bond issue to finance the acquisition of Malakoff, increase in cigarette prices and TM’s associate, Spice Communications US$330m IPO in India to raise funds for expansion. Aside from that both Mitrajaya and Perisai were awarded major contracts that should see some action on the counters today. While near-term feel good factors will continue to lend positive support to the market, it nevertheless faces a virulent resistance at the 970 level. Recent gains could also translate into some profit-taking on blue-chips while retailers may prefer to adopt a wait-and-see attitude in search of new leads. News flow from the US was pretty dry with the Labour Day holiday but oil prices have dipped below US$69 per barrel.
Technical View
The market closed shy of the previous high recorded in mid-May on the back of the strong Budget infused blue-chip buying. The broader market, however, witnessed sporadic selling of lower liners indicating the more wary sentiment among retailers. Major headlines include MMC’s RM8bn Islamic bond issue to finance the acquisition of Malakoff, increase in cigarette prices and TM’s associate, Spice Communications US$330m IPO in India to raise funds for expansion. Aside from that both Mitrajaya and Perisai were awarded major contracts that should see some action on the counters today. While near-term feel good factors will continue to lend positive support to the market, it nevertheless faces a virulent resistance at the 970 level. Recent gains could also translate into some profit-taking on blue-chips while retailers may prefer to adopt a wait-and-see attitude in search of new leads. News flow from the US was pretty dry with the Labour Day holiday but oil prices have dipped below US$69 per barrel.
posted by nomadhunter at 8:08 PM
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