January 4, 2007

Daily Commentaries 5th Jan 07

The KLCI was dampened yesterday with the previous mixed close in US markets but still managed to eke out a meager gain. For today, we expect the market to continue its march ahead with news in the form of Bumiputra-Commerce Holdings announcement of its proposed disposal of its insurance companies to Aviva and Allianz. Top Glove reported a reasonable set of results while FAX was granted a license to fly to Australia and Europe. Synergy Drive extended the deadline for its proposed acquisition of the various PNB related companies to 15 January 2007. Sunway City is carrying out a RM300m property development in India while locally builders are unhappy over the Government’s decision to backdate the price hike of cement from December 1st 2006. US markets still managed to close slightly higher overnight on falling commodity prices including oil and copper and we believe this will have a positive effect on our market. Technical support and resistance levels remain the same at 1110 and 1138 pts levels respectively.


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