Daily Commentaries 11th Oct 06

The KLCI advanced 0.33 points led by Genting after the media reported that the company has submitted its bid for Singapore’s second casino in Sentosa Island. The proposed US$3.1bn project would include a Universal Studios theme park and six hotels. Two positive news that has been discounted by the market are (i) the Energy, Water and Communications Minister statement, which said that there will be no more electricity rate hike this year although gas prices to the country's power generators are likely to be increased; and (ii) a possible improvement of retail sales in 2006 to 7.5% (2005: 6.2%). In the telco industry, government will make available three or four licenses to operate wireless high speed Internet services. Malaysia Airports has submitted a bid to build, operate and manage a RM1.03bn new terminal at the Queen Alia International Airport in Jordan. Meanwhile, Mah Sing Group is planning a property development project along Jalan Tun Razak with an estimated GDV of RM246m. The market is likely to hover at the 970 resistance level despite another closing high by the Dow overnight. Concerns on possible interest rate hikes as the Fed worries that it hasn't done enough to curb inflation as well as North Korea’s nuclear testing, may keep the local market rangebound. Immediate support remains at 966.