Daily Commentaries 2nd Nov 06

The KLCI eked out another modest gain in its quest towards the 990 pts resistance level. Today, investors will look towards Time dotCom who announced a VSS exercise, PLUS who is acquiring a 55% stake in an Indonesian highway concession and PPB Group who will be constructing and operating a wheat flour mill in Indonesia via a JV with a Singaporean company. AirAsia is also in the news with a delay in its audited financial statements while resolving a non-cash tax item. Malaysia Airports is likely to be boosted by news of new airlines flying to Malaysia and potential overseas contracts while Wah Seong announced the disposal of its non-core concrete piles subsidiary to Concrete Engineering Products. US markets retraced yesterday as manufacturing growth slowed leading to concerns on corporate earnings growth. With oil prices largely flat, the market lacks any major catalyst to propel it ahead. Nonetheless, buying sentiment and momentum may just be enough for it to tackle the 990 pts resistance level. Support remains at 984 pts level.