Daily Commentaries 9th Jan 07

Asian markets took a breather yesterday fanned by concerns on the Fed’s ability to cut interest rates. For today, major headlines came in the form of Sime Darby putting on hold the takeover of Ramunia following the Synergy Drive merger, Tan Sri Syed Mokhtar setting up a JV with the Iranian government to develop a gas project and TM’s expectations of a turnaround in its fixed line business by 2009 with the help of internet- based services. Meanwhile, Supermax has proposed a 1-for-2 stock split to increase the liquidity and marketability of its shares. With the Dow clawing back earlier losses overnight ahead of the start of the official earnings season today, we expect the KLCI to follow through today. Near term support is seen at 1110 with immediate resistance pegged at 1138.