Daily Commentaries 18th Jan 07

The KLCI chalked up another multi-year high breaking through the 1138 pts resistance level with volume remaining strong although the broader market was mixed with gainers roughly equal to decliners. Tenaga is in the news with negotiations to double its export of electricity to southern Thailand as well as the potential conclusion of talks between the Government and IPPs next month. Green Packet announced a 2-into-1 share consolidation following its proposed move to the Main Board. Proton and Peugeot have concluded their feasibility studies on the proposed partnership between the two. Unconfirmed reports state that Tan Sri Syed Mokhtar may inject a RM1.6bn port development and management contract won by Seaport Terminal SB into the MMC Group. Other unconfirmed reports also state that Singapore GLCs may be keen to acquire a substantial stake in Suria Capital, the operator of ports in Sabah. For today, with the moderation in US markets after strong gains, we expect the KLCI to face some resistance. Initial support is at the 1138 pts level while technical resistance now moves to 1150 pts.