Daily Commentaries 15th Jan 07

The market arrested two days of profit-taking to stage a strong recovery last Friday, closing just shy of the 1120 mark, buoyed by another record close on the Dow and corporate driven newsflows. Save for the floods in Johor, there were little notable business headlines. Among the more pertinent ones were MAS' decision to delay the abolishment of agency commission for another year, AMMB expects to finalise talks for the acquisition of Pan Global by the end of the year and SKVE Holdings looking to issue bonds or term loans to finance the RM1.3bn South Klang Valley Expressway. AirAsia also awarded a maintenance contract to ST Aerospace for its new fleet of A320s while FCW has proposed a 5-into-1 capital reduction. Given decent gains in the US markets on Friday and stabilizing oil prices, the market may look to trend higher but intermittent profit-taking cannot be discounted. Support and resistance levels remained at 1110 and 1138 respectively.