Daily Commentaries 27th Nov 06

It was another field day last Friday as the KLCI gained a further 13pts into uncharted territory. Genting and Resorts led the upward charge although trading excitement centered along call warrants which dominated the active list. M&As decorate headlines over the weekend with ANZ making an offer for AMMB, Kuwait Finance House keen on Utama’s stake in RHB, Multi Purpose's GO for remaining Magnum shares and Affin securing the green light to commence talks with Bank of East Asia Ltd. MAS will also review its domestic airfares following protests from several parties. As for results, both Road Builder and Carlsberg were within expectations. Also as expected, BNM has kept the OPR unchanged at 3.5%. The slew of corporate developments should uphold the bullish sentiment on the market this week although we will not be surprised to see a mid-time correction given the spectacular rally over the past week. This should only be viewed as healthy for the KLCI to sustain the longer-term upside. Immediate resistance is now seen at the 1,080 level with support at the previous resistance of 1,050.