Daily Commentaries 23rd Jan 07

Foreign-led buying pushed the KLCI above the 1150 resistance level to a new high yesterday. Trading was brisk with index-linked stocks attracting renewed interest while timber concerns were darlings of the day. Public Bank tops business headlines with FY06 results coming within market expectations while Redtone disappointed. Among notable news today, IGB has been approached by both local and foreign parties to buy the Renaissance Hotel, Bursa’s plan to take up minority stakes in regional bourses and AirAsia’s denial that it is seeking a secondary listing in Hong Kong or London. The underlying bullish momentum on the KLCI remains intact although the fall in US markets overnight may evoke some profit-taking. Support moves to 1150 while the next immediate resistance can be found at 1158-1160.