Daily Commentaries 16th Jan 07

The KLCI mirrored the strong performance across Asian markets to trace another new high yesterday. Blue chips continued to be in the limelight with Genting and Bursa fronting the gainers list. For today, key news headlines came in the form of a possible snag in the Synergy Drive plantation merger as PNB could not agree on certain conditions in the proposal, Salcon being awarded a sewerage design and construction project in Sabah, Australian-based LCC Jetstar in discussions with AirAsia for mutual routes and the government's confirmation of GM's interest as a strategic partner in Proton. Shares of Konsortium have been actively traded following news that its haulage business is up for grabs while MAS is raising RM1.6bn via a right issues to finance working capital. Given the over 20 points run over the last 2 trading days, there is the tendency for investors to lock-in gains although the bullish sentiment remains firm. Support now moves to the 1121 level while 1138 remains the resistance.