Daily Commentaries 28th Nov 06

The KLCI closed another 8 pts firmer for the day underpinned by continuing bullish sentiment. For today, the revelation of the RM31bn landmark merger exercise involving Sime Darby, Golden Hope and Guthrie clouds headlines. Other news include TM buying into 2 Sri Lankan companies, BCHB disposing- off its insurance businesses, probable merger between NSTP and Utusan, MISC investing RM20bn for the purchase of another 23 tankers over the next five to six years and toll rate hike next year. Guthrie is also selling-off the Guthrie Corridor Expressway to Prolintas. Of the remaining few big caps, Sime Darby’s numbers were below expectations. For today, the KLCI appears headed for a breather of sorts to digest the 5 consecutive days of trading gains. The Dow continues to be in corrective mode. Support for the KLCI remains at 1,050.