Daily Commentaries 24th Jan 07

Momentum buying as well as sharp gains in Genting and Resorts following Star Cruise’s venture in Macau moved the KLCI higher yesterday to close at 1,169.12 points while regional markets closed mix. The PNB-related companies involved in the Synergy Drive deal are expected to ink the S&P agreement today. Other corporate news today are Genting’s foray into Macau, Kinsteel’s successful turnaround story and Media Prima’s plans to sell land and building for RM60m. Tan Sri Syed Mokthar has been reported as being keen to raise his interest in Utusan while EON has squashed talks of any capital repayment. For today, market is likely to remain strong, supported by the Second Finance Minister’s statement on the encouraging economic growth last year as well as the strong gains on the Dow overnight. However, the US$2pb gain on crude oil may hamper sentiment. With the sharp move on KLCI yesterday, support now stands at the 1,160 level with immediate resistance at the 1,175 level.