Daily Commentaries 10th Oct 06

The upside on the market proved shallow as regional markets fret over the contagion effect arising from North Korea’s detonation of a nuclear weapon. BCorp stopped short of confirming speculation that it will take Cosway private indicating it is still mulling the proposal. Genting’s offer for Stanley Leisure has become unconditional after its stake increased to 69.4%, while the counter will likely attract further interest ahead of the close of the Sentosa bid today. Malaysia’s August IPI numbers also did not provide any spark. Also in the news today, Gamuda is believed to be vying for a US$2bn rail network in Saudi Arabia, Salcon inked a 30 year contract to operate and manage the supply of treated bulk water in China and Transmile’s proposed private placement of RM287m to fund aircraft purchase. With the combination of geo-political concerns and little forward looking catalysts, the market should languish further today. There is no change in the previous support of 966 while resistance moves back to the 970 level.