Daily Commentaries 8th Jan 07

The KLCI still managed to close a tad firmer last Friday on late buying of heavyweights. Market breadth was generally mixed with gainers only marginally tipping losers with volume exceeding 1bn. Key corporate news out of the weekend include the possibility of AirAsia upping its stake in FAX to a maximum of 30% stake while denying talks with Virgin and Easy Group , the MMC led consortium clinching a US$48.2m EPCC contract in Indonesia and Suncity's JV in India for the building of a high rise residential property. Supermax is also in the news this morning with continuing strong profit growth from robust global demand. Meanwhile, November export sales posted a 17.5% y-o-y rise, the highest since November 2004. With oil prices expected to remain soft, sustained retail flows and the spate of positive corporate developments, the market should continue to trend upward despite the weaker close on the Dow on Friday. Support and resistance are at 1110 and 1138 respectively.