Daily Commentaries 11th Dec 06

Profit-taking on the market was well absorbed last Friday with the KLCI eking marginal gains to close largely flat. Genting makes headlines over the weekend as the winner of Singapore's second casino bid, ousting Kerzner International and Eight Wonder. BCorp has inked a deal with Agromash Holding BV to dispose-off its entire 56.7% stake in Dunham-Bush at RM3.50/share while Green Packet announced the completion of the purchase of a 55% stake in MIB Comm S/B. Tronoh was also awarded a contract for the construction of an office tower and service apartments at the Dubai Internet City while TRC Synergy received a LOI to build a submarine base for the Royal Malaysian Navy in Sabah. Meanwhile, several parties have also expressed interests to acquire Jaring from MIMOS. ASTRO's 9MFY07 results came in above expectations with shares expected to ride on the launch of Measat-3 tomorrow. On the overseas front, US markets continued its uptrend ahead of the weekend with better than expected November jobs data fuelling expectations that the FED will maintain interest rate at the meeting tomorrow. Given the slew of positive corporate developments, we would expect the KLCI to resume its Northward march today spearheaded by Genting's news. Resistance is pegged at 1,100 with support pinned at 1,080.