Daily Commentaries 19th Dec 06

Despite starting the day firmer, the KLCI slipped 7.72 points at the close with the likes of TM, Genting and IOICorp sold down. The modest volume of 887m shares reflected the increasingly cautious and mixed stance among investors in recent days following the meteoric rise in the KLCI over the past month. MMC is in the news today with the planned listing of the JV company with Saudi's Bin Ladin Group to finance the US$30bn Jizan Economic City, RHB having secured the green light from BNM to start talks with Kuwait Finance House, KLK acquiring a specialty Swiss oleochemical company and Gamuda inking a new tariff agreement with Thailand on future purchase of hydroelectric power. The company also it is eyeing potential power plant projects in South East Asia and the Middle East. The market is likely to find excuses to drift further today on the back of the latest query over Kuchai that could undermine broad market performance further and the Dow’s weaker close last night. Support retreats to the 1,078 level with 1,090 acting as the immediate resistance.