Daily Commentaries 21st Dec 06

The KLCI did indeed rebound as the Thai Government decided not to impose capital controls on equities and the Malaysian authorities issued statements to ease concerns that Malaysia may follow suit on capital controls. For today, we believe that volume will continue to be lackluster although blue chips may continue clawing back some gains. Amongst major news today includes foreigners no longer needing Foreign Investment Committee approval to purchase properties above RM250,000 which we believe will spur further interest in the property sector. Green Packet has proposed a 1-for-2 bonus issue and transfer to the Main Board while YNH Property announced a MOU with CapitaLand to develop a 131,000 sq ft site along Jalan Sultan Ismail in KL’s Golden Triangle. Maxis’ Indian subsidiary, Aircel, has reportedly been offered to join the Reliance-led consortium to bid for Hutchison Essar while Tan Sri Quek Leng Chan is rumoured to be taking up a stake in recently listed IPO Kencana Petroleum. A reminder also that AmFirst REIT will be listed today. As mentioned, blue chips may continue to climb leading the KLCI back towards the 1082 pts resistance level, spurred by Sime Darby’s rumoured imminent acceptance of the Synergy Drive merger deal. Support is at the 1069 pts level.