Daily Commentaries 26th Dec 06

The KLCI ended 3.04 points up prior to the Christmas holidays after recovering from the intraday low of 1,072.89 points. Corporate news for today are Golden Hope’s the widely expected acceptance of Synergy Offer’s takeover proposal and Wah Seong’s plans for an internal restructuring, which should be completed by 2Q07. The flood in south Peninsular Malaysia is likely to cost TNB RM10m in maintenance costs as the substations are submerged. Over in the US, consumer spending surged in November and inflation remained flat. Meanwhile, the Japanese economy is recovering but private consumption is sluggish, as rising production and capital investment fuel the country's longest economic expansion since World War II. The KLCI may be cautious ahead of another long holiday break this weekend. Immediate resistance stood at the 1,082 pts level with support at the 1,069 pts level.