Daily Commentaries 5th Oct 06

The KLCI made another attempt at the 970 pts level but again failed to break above the key resistance and instead fell some 3.5 pts at the close. Major news for today is confirmation that Road Builder’s Executive Vice Chairman and founder, Tan Sri Chua Hock Chin, had sold his stake in the company and resigned from his position. Other than that, UEM Land proposes to reduce its borrowings through the issuance of shares to UEM and Khazanah, MAS continues to rationalize its routes as part of its turnaround plan, I&P proposes to sell land worth RM63.5m to LTAT, Alam Maritim announced 2 new contracts worth RM23.9m and Samudra proposed a private placement. The only major local catalyst that appears to be currently circulating is rumour of more M&As in the local bourse. As such, we are unlikely to see any broad rally for today. However, with the DJIA hitting record highs and oil price appreciating slightly, the local bourse may just have enough impetus to have another go at the 970 pts resistance level. Support is now at the 960 pts level.