Daily Commentaries 30th Nov 06

Continued buying on selected blue chips including the PNB related companies involved in the Synergy Drive led merger led the KLCI higher on sustained volume. Good earnings in a number of small caps also spurred broader market interest. Strong results overnight include those from Media Prima, Guthrie, KPJ and UEM World. In news today, Coastal Contracts announced the sale of 4 offshore utility support vessels to Alam Maritim for RM54.9m and Malaysia Airports is seeking to impose a security surcharge at KLIA in line with global operators. Ranhill is building 10,000 apartments for US$413m in Libya while Kurnia Asia joined the race to buy Commerce Assurance after getting the green light for negotiations from Bank Negara. Genting and TNB have been shortlisted in Malaysia’s first open tended to build a controversial coal fired IPP in Sabah. Finally, Frontken secured the exclusive rights to negotiate for the acquisition of 19% stake in Taiwanese tech firm Ares Green. Overnight US market surged on good GDP data and this good news will likely have a follow on effect in our market today. Look for the market to test the 1072 pts resistance with support now moving higher to 1056 pts.