Daily Commentaries 17th Nov 06

The KLCI rallied up 9.22 pts, ignoring all constraints as positive sentiment led to 1.2bn shares being traded with a value of RM1.5bn. In terms of results announced yesterday, Lingui and Ornasteel reported excellent growth while auto stocks Tan Chong and APM disappointed. UMW’s was within expectation. Among the feel good factors today are MTD Infraperdana possible plan to return as much as RM460m to shareholders, Lingui looking for more timber concessions, Pantai announcing an agreement with the Government of West Java to manage medical waste there and Mah Sing’s bonus and rights issue. Scomi clarifying that its largest shareholder has received some proposals but no decision has yet been made to Scomi’s privatization. AmFIRST REIT proposed the acquisition of Kelana Brem towers from Brem Holdings for RM85m while UEM Land confirmed that they are in discussions to issue a REIT. We believe that there is still sufficient positive sentiment for the market to move ahead today towards the resistance level of 1050 pts particularly given the overnight rise in US markets.