Daily Commentaries 23rd Nov 06

With a 7.65 gain in the KLCI and volume of 1.3bn shares and value of RM1.6bn, the market had a good day yesterday. For today, the market will be awaiting the 3Q GDP figures to be released which should hopefully reinforce the positive sentiment in the market after October’s inflation fell to a 15-month low. Sime Darby, Golden Hope and Guthrie are in the spotlight with a potential merger between the three possibly being announced today. In results, Maxis surprised on the upside while KLK’s was below expectation although the company is proposing a 1-for-2 bonus issue. Malaysia Airports has concluded its restructuring discussions with the Government and is awaiting the Government’s decision. The S&P closed at a 6 year high ahead of the Thanksgiving holiday in the US. With enough good news, we believe the market will test its immediate resistance of 1044 pts with the next resistance level at 1050 pts.