Daily Commentaries 20th Nov 06

Gains were trimmed by the intermittent profit-taking activities last Friday although the KLCI did trace another high. Losers tipped gainers by a small margin of 446 to 420 but trading volume remained robust at over 1.2bn. Newsflows out of the weekend were spearheaded by results from BCB and Tanjong Offshore that were within expectations. Tan Sri Syed Mokhtar is reported to keen on the port assets of Road Builder while AMMB has gotten the go ahead from BNM to commence negotiations with TPG Newbridge Capital. CIMA has consummated its discussions with VICAT for the sale of its cement businesses. Meanwhile, Port of Tanjung Pelepas (PTP) is also tipped to be the regional hub for Shanghai based- China Shipping Group following official meetings held last week. Also, Leader has entered into a JV with a Cambodian company to bid for a 200MW coal-fired power plant in Sihanoukville. We would expect the broader market to take a slight breather after the good run in the previous week although the positive sentiment and the Dow’s extended high should uphold the bullish bias outlook. Resistance remains at the 1,050 level with immediate support at 1,028.