November 13, 2006

Daily Commentaries 14th Nov 06

As expected, the KLCI succumbed to profit-taking with recent gainers such as BAT, KLK, IOICorp and Tenaga sold down. Despite the overall cautious retail momentum, trading volume was a robust 904.4m reflecting extended nibbling of lower liners. News today came in the form of a new Singapore-based investor for Freight Management, RHB Islamic breaking- off talks with Saudi’s Al Baraka group for a potential equity stake and Resorts World’s associate, Star Cruises posting a maiden profit in 4 quarters and undertaking a US$200m rights issue. Also, the voluntary takeover for AMCorp has been extended for a further 7 days to Nov 21. Results announced last night were generally mixed with Timedotcom trimming its losses further while Pharmaniaga saw a contraction in net profit against the same period last year. With the near-term support of 1,021,2 taken-out, this now acts as the immediate resistance while support is seen at the 1,010 mark. We would expect range-bound trading today on the back of mixed newsflows and investors taking cue from the reporting season. Dow was marginally higher last but the bears were quick to absorb near-term gains.

0 Comments:

Post a Comment

<< Home