Daily Commentaries 21st Nov 06

The market looked tired after the strong run last week and retreated for the better part of the day against brisk volume of 1.2bn shares. Key corporate highlights today include Media Prima's acquisition of a 70% stake in outdoor advertising outfit, Big Tree Outdoor and Naza’s competitive bid for Proton with bitter rival, DRB-Hicom. The government also said it may award RM800m worth of contracts to local contractors of the 2nd Penag Bridge Project. KFC results came in above expectations while that of Crest and TSR disappointed. Last night also witnessed the long-awaited correction on Wall Street ahead of the holiday-shortened week after closing in record territory for 18 times since October. We would expect the KLCI to drift further today with investors taking cue from the reporting season. Support is now at 1,030 followed by 1021 level.