Daily Commentaries 4th Jan 07

The KLCI rallied up 20.85 pts on the first trading year of the year, one of its strongest performances ever. For today, unconfirmed reports state that Maxis had dropped out of the race for India’s Hutchinson-Essar. More details continued to emerge on the long haul budget airline plans to Europe with FAX now appearing to take the lead. BNM has further liberalized the policy governing equity investment activities by allowing banks to hold up to 5% in another bank. Results released yesterday include LPI Capital which announced a substantial 80 sen dividend. With US markets recording mixed performances overnight as fears of further interest rate hikes re-emerged, the KLCI could well take a breather today. Nonetheless, the long term uptrend remains intact and today could present opportunities to buy on weakness. Technical support and resistance now rest at the 1110 and 1138 pts levels.