December 11, 2006

Daily Commentaries 12th Dec 06

Genting led the early rally on the KLCI yesterday although broad selling pressure was quick to set-in thereafter to frustrate the upside. The KLCI settled above the 1,101.70 level after hitting an intra-day high of 1,110.2. Among key headlines today, BCorp has sold a 30% stake in Berjaya General Insurance (BGI) for RM101m to Sompo Japan Insurance Inc, TMC Life Sciences venturing into cord blood and adult stem cell banking and CIMB's foray into the Middle East Islamic banking business via a JV with Bahrain based, Kanoo Group. Also, VW is reported to be the frontrunner for the strategic partnership with Proton with a due diligence audit agreement likely to be inked before Christmas. Over in the US, expectations are for the FOMC to keep interest rate unchanged at the meeting today with the Dow raking another positive gain overnight. For today, we believe there is still enough meat for our local market to power ahead on the back of the healthy trading momentum. Immediate resistance is now pegged at 1,110.12 followed by the 1,138.21 pts level while the 1,110 pts level has become the immediate support for the market followed by the 1,080 pts level and the 1,065 pts level.


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