Daily Commentaries 12th Jan 07

The KLCI slid yesterday in line with falling oil prices as fears were raised on the level of future petroleum income for the country. For today, market watchers will note Datuk Ahmad Zubir’s, CEO of Sime Darby, appointment as the chief executive designate of Synergy Drive. Kuwait Finance House is believed to have been approached to take up a 30% stake in Tan Sri Syed Mokhtar’s Bank Muamalat. MAS is scheduled to hold discussions with India’s Jet Airways for a codeshare agreement to India while Thai AirAsia expects to expand its routes into Malaysia. Finally, AKN Technologies is exiting the semiconductor distribution business for RM70m cash. With oil prices extending their slide, the outlook is uncertain for the Malaysian market, nonetheless, the overnight jump in US markets should mean a rebound is likely after 2 days of losses in the KLCI. With yesterday’s losses, support retraces to 1100 pts while the 1110 pts level is now the resistance.