Daily Commentaries 9th Nov 06

The KLCI stayed its course with continued gains as what appeared to be foreign buying boosted the market. Proton is in the news today with the Government believed to have given approval for foreign parties to have a 51% stake in its manufacturing operations. IJM has been appointed as the main contractor to reactivate works on the RM840m Kajang-Seremban Highway while a number of firms including Celcom, the Berjaya Group and Salcon are expected to sign MOUs with policy makers from Vietnam for some US$1.5bn worth of projects. MAS will now maintain its KL-Stockholm-Newark route beyond January 15 2007 in response to a Government request given Visit Malaysia Year 2007. Pos Malaysia is rumoured to be one of the suitors for EPF’s stake in Malaysia Building Society. On the foreign front, the win by the Democrats in the US congressional elections seems to have had little impact on US markets which continued their uptrend. The KLCI looks set to continue its upward march today although gains could be capped by profit taking activities. The 1021 pts resistance remains while support stays at the 1000 pts level.