Daily Commentaries 13th Nov 06

The KLCI continued its strong performance last Friday with heavy buying on index-linked stocks. Over the weekend, the Government said that an international tender for the RM3bn Pahang-Selangor raw water transfer project is expected to be carried out by the middle of next year. In addition, the Second Finance Minister confirmed that the Government is in talks with Volkswagen on the possibility of it teaming up with Proton Holdings. The Prime Minister also performed the ground-breaking for the Second Penang Bridge project in Batu Kawan. The RM3bn bridge, to be built by the UEM Group, is slated to open to traffic in 2011. Top media news today is Malaysia Airports’ submission of a RM200m working plan to upgrade and manage an airport terminal in Saudi Arabia and Gamuda’s US$248.8m highway contract in Bahrain. Meanwhile, KPJ plans to manage or acquire more hospitals, at a rate of one per year. Since the market is only a tad higher from the last resistance level, we may see some profit taking following the heavy volume on follow-through buying last week. Despite Dow Jones’ strong performance last Friday, the weekend’s blast in Jakarta may dampen investors’ sentiment. From the current level, immediate support is at the 1021.2 pts level followed by the headline support level of 1000.