Daily Commentaries 5th Dec 06

The market dipped slightly after hitting a high of 1,082.58 with few heavyweights succumbing to selling pressure. In the headlines today, TM has quashed media reports that it will acquire Timedotcom (TDC), Time Engineering selling-off a 2.1% stake in TDC in the open market and NSTP/Utusan confirming the merger is still on. TM is also reported to have put up for sale its payphone business. Meanwhile, Singapore’s public transport operator, SMRT has offered to partake in Johor’s monorail project. On the economic front, Malaysia posted another trade surplus for October despite seeing a m-o-m contraction in exports. US markets closed firmer on M&A newsflows and the fall in crude oil prices. We think there is enough meat for the market to attempt another high today, noting the immediate upside resistance of 1,080 with support at 1,065.