Daily Commentaries 7th Nov 06

While profit-taking among recent blue chip wins were not unexpected, it was the limit down on Sugar Bun that sent shivers down investors’ spine, contributing to the poor start for the trading week. Overall market breadth was negative with loser outpacing gainers almost 2 to 1. DRB-Hicom makes headlines today as among those short listed for the US$9bn Saudi rail project. PTP is looking to manage a seaport in Saudi’s Jizan Economic City (MMC had earlier revealed a US$30bn contract to build the economic region) while Tanjong Offshore has awarded a RM41m contract to Boustead Naval Ship for an anchor handling tug and supply vessel yard. Meanwhile, Goldman Sachs has emerged as a substantial shareholder of E&O via a 5.5% stake acquired from the open market. On the results front, Unisem reported 3Q06 numbers that came in above expectations. For today, there may just be enough to reverse the temporary malaise on the market in the form of Dow’s strong overnight gain and the dip in oil prices. Immediate support and resistance are at 990 and the psychological 1,000 mark.