Daily Commentaries 3rd Nov 06

With plantation counters leading the way, the KLCI climbed past the 990 pts resistance to within striking distance of the psychologically important 1000 pts level. Corporate news today includes Puncak Niaga’s minorities rejecting a GO waiver, Salcon securing a RM57m water supply project in Sri Lanka, IJM winning a RM331.4m condominium project, Sime Engineering bidding for RM3-4bn of contracts mainly in the Middle East and MAS relooking into its fares for the Visit Malaysia Year 2007. Nonetheless, major news comes in the form of RM100bn worth of high impact jobs under the 9MP which will be rolled out soon. This announcement ahead of the launch of the South Johor Economic Region tomorrow and the 2nd Penang Bridge on 12th November is likely to boost sentiment enough for the KLCI to attempt the 1000 pts resistance. This despite the retracement of US markets on poor retail news. Support is now at the 990 pts level.