Daily Commentaries 8th Nov 06

The KLCI stayed above the psychological 1,000 mark for most of the day but closed a tad lower from its intraday high of 1,005.06. Two good news for the construction sector: (i) plans for a permanent link between the new Customs, Immigration and Quarantine Complex in JB with the Johor Causeway; and (ii) Cabinet’s approval to a railway line from KLIA to LCCT. Sime Darby reiterated its plans to make Malaysia an assembly hub for Hyundai and maintain its aim to increase plantation acreage. The company is also happy with the Bakun project, which is 60% completed. Meanwhile, Proton has clarified that it is not aware of any bids from Mofaz. Mulpha International’s offer for the Grand Hotel Group (GHG) was unsuccessful after it failed to secure at least 50% of the GHG securities when the offer closed on Nov 7. The results season is underway. Titan reported strong 3Q06 numbers, driven by improved supply and demand, stable feedstock costs while its Indonesian subsidiary PT Titan turned around. F&N showed improved FY06 earnings despite weak consumer sentiments that have affected soft drinks sales. Follow-through buying may continue today as investor confidence soars, supported by the strong regional markets, the Dow’s new intraday high last night and easing oil prices. Immediate support and resistance are at 1,000 and 1,021 levels, respectively.