Daily Commentaries 12th Feb 07

Attention shifted to second liners and laggards as blue chips took an expected breather after the recent rally. Key headlines out of the weekend include AMCORP emerging as a substantial shareholder of ECM Libra, TNB confirming on-going discussions with Sime Darby on the undersea cable project, Sime Engineering's subsidiary clinching a contract to build a process platform, utility platform and three bridges offshore Qatar. Ramunia has received the letter of award for the RM307m EPCC contract at the Malaysia-Thailand Joint Development Area while Petra Perdana has placed-out a 10% stake in the company to HL Company Management for RM2.75/share. Genting is also mulling the possibility of selling- off non-gaming assets. Meanwhile, Ornasteel results came in ahead of our expectations although below consensus estimates. On the US front, observers expect the Dow to push higher this week on the back of positive economic data. Locally, the record underlying volume should see the broader market maintaining its positive vigour ahead of the Chinese New Year. Immediate support and resistance levels remain at 1240 and 1250 respectively.