Daily Commentaries 29th Nov 06

As expected, profit taking activities took place yesterday after the strong run-up over the last five trading days. For today, Telekom’s weak 3Q06 numbers has been widely expected while MAS’ first quarterly profit may lead the company to revise upwards its financial forecast. Other news are the appointment of AmInvestment Group and BNP Paribas to structure the NSTP-Utusan merger, DRB Hicom’s clarification that it had made no offer to dispose of an equity stake in EON Capital, and Hexagon’s RM500m contract to supply corporate identity visual products. Meanwhile, Petronas’ discovery of O&G reserve in Johor may spur trading interest in O&G stocks. For today, the KLCI may continue to correct, testing the support of 1,050 level.