Daily Commentaries 2nd Oct 06

Last week saw numerous attempts by the KLCI to overcome the 970 level but late profit taking on heavyweights such as Tenaga, Maybank and Proton provided the anti-climax. Among the key headlines over the weekend, AIMS- listed GMO acquiring a 20% stake in Chinese content provider- Wisdom Choice, Crest Builder’s RM182m contract for the building of an apartment and Ramunia’s RM200m contract for the construction of a jacket and platform for an oil field project off Terengganu. Aside from that, Maxis has slashed the price of its starter kit from today while Gamuda revealed weaker FY06 earnings on the lack of domestic contracts. There does not seem to any meaningful catalyst to lift the market out of its stupor and we would expect a continuum of the range-bound trading pattern. We note the Dow’s heavy fall last Friday following a re-test of the 6 year high earlier.