Daily Commentaries 18th Oct 06

The KLCI succumbed to profit taking activities after the recent rally. Worse hit sectors were the Finance and Plantation. Public Bank’s 3QFY06 results as well as Top Glove’s the sterling FY06 performance, tops corporate news today while the automotive sector saw continued decline of vehicle sales in September. Other M&A news: (i) Sime Darby is allowed to acquire Ramunia’s ICPS based on market price; (ii) Ezywood Options acquisition of Huaren’s 21.01% stake in Nanyang Press will trigger a MGO; and (iii) KUB is inviting bids for the A&W franchise in Malaysia and Thailand. IJM Corp, Road Builder and RB Land are suspended pending an announcement while Putrajaya Perdana will debut on the Main Board today. The coming long festivities holidays as well as the lower closing of the Dow overnight may prompt follow-through profit taking activities. The immediate resistance level is 980 with an initial support of 970, followed by the 966 pts level.