Daily Commentaries 3rd Jan 07

With most Asian markets and the KLCI having closed 2006 on a bright note, expectations are for a firmer start after the long New Year holidays. There were little fresh news today save for the planned IPO of highway concessionaire, Prolintas, 3 investment banking licenses issued to universal brokers, OSK Securities, K&N Kenanga and Hwang- DBS Securities and Landmarks’ acquisition of 2 parcels of land in Bintan Island that will be developed into a water resort city. AirAsia is also expected to make an announcement this Friday on a key undertaking, following earlier media reports of a tie-up with the Virgin and Easy Group for a global low-cost carrier. On the results front, Kim Loong reported 3QFY07 numbers that were in line with expectations. US markets were closed yesterday in honor of the passing of former President, Gerald Ford but oil prices held steady at US$60 per barrel despite concerns of rising tension in Iraq following the execution of Saddam Hussein. We would expect the market to tread on a positive bias today in search of fresh 2007 leads with resistance and support levels pegged at 1,100 and 1,093 respectively.