Daily Commentaries 16th Feb 07

The market did not disappoint in terms of a CNY rally, running up another 12.99 pts on a record 3.5bn shares being traded although market breadth was not too positive with gainers outnumbering losers by only a 5:4 ratio. Big news is Petronas’ announcement that it will begin work on its Kimanis oil & gas terminal in June 2007 while Protasco announced a RM45m LOI to build a teacher’s training college in Penang. Among the notable results announcement last evening were Transmile’s and BAT’s excellent set of numbers. Although profit taking is imminent, the strong market sentiment as well as the Dow’s record close last night and slipping oil prices may continue to boost the local market. The market is now looking at the 1,278 pts resistance level before the upcoming CNY holidays.