Daily Commentaries 25th Jan 07

In line with other markets in the region, the KLCI powered ahead to close 14 pts up even as losers outnumbered gainers in the broader market. For today, the Synergy Drive deal also moves into the next gear with the Sale of Business Agreements being signed yesterday while the Board of PPB Group has approved of the offer by Wilmar to acquire PPB Oil. Sime Darby is also in the news after Tenaga held a briefing on the Bakun submarine cable where Sime Darby may hold 60% and Tenaga 20% of the project. MAHB said that it was close to finalizing plans for the LCCT expansion while Dialog announced a new RM27m EPC LOI in Kertih. With the news that Synergy Drive is moving ahead, we feel that the market has enough catalysts to head towards the 1200 resistance level. Support now moves up towards the 1170 pts level. The rise in US markets last night after Yahoo reported good results should also support bullish sentiment while Tenaga’s results to be reported today should keep the focus on the blue chips.