Daily Commentaries 15th Nov 06

The KLCI staged a strong performance yesterday to close at 1,030.09, which was last achieved in July 1997. Top media news today is the possibility of Scomi being taken private at between RM1.20 and RM1.50 per share. The saga on Proton continues with DRB-Hicom confirming its interest in the national car company while Sime Darby informed that it has no firms plan for Proton. Meanwhile, IJM informed that Tronoh has not made any decision on its stake in IJM. Maybank reported weaker quarterly numbers while AMMB and the IOI group released commendable results yesterday evening. The new record closing high on the Dow last night as well as the rally in regional bourses may provide further boost to the market today. However, the weaker-than-expected results of Maybank may lead to some sell-down on the heavyweight. In addition, the sudden upward surge in yesterday’s market may lead to some profit taking activities today. At the current level, immediate support is at 1,021 while resistance is pegged at 1,050.