Daily Commentaries 9th Oct 06

News of Harrah's eleventh hour exit from the Sentosa bid boosted Genting's shares last Friday, helping the market close 2 points firmer at 970.98. The local bourse had earlier profited from the bullish upside of the Dow and softening oil prices, keeping a tight rein on inflation. The construction sector spearheaded news over the weekend with the government saying payment for work done should take no longer than 3 weeks. UMW is targeting sales of its new Camry model at 500 units a month while Bursa does not expect significant revenue upside from the near-term launch of short-selling. Aside from that, AirAsia said it will not consider operating long haul budget flights while chipmaker, Unisem expects stronger sales from the expansion into the Taiwan market. With the much touted 970 level taken-out, the market now faces a uphill task to sustain the bullish bias stance on the backdrop of continuing lackluster retail participation and dry leads. Hence, the range-bound trading should persist this week with interchanging focus on internal and external leads. Support remains at the 966 level with upside target at 980.

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