Daily Commentaries 26th Feb 07

The KLCI showed another good performance last Friday, breaching the 1,278 support to close 6.95 points higher. Major corporate news for today includes the extension of TM and TNB’s CEO contract for three years, UEM’s detailed plans for the development of Nusajaya and MAS’ ‘Project Firefly’, which plans to use Penang as the new domestic and regional operation to service the premium travel market. Nonetheless, the local bourse should be encouraged by Telekom’s heartening FY06 results while the disappointment in Star Cruises numbers may have a negative impact on Resorts World. The market would be warming up for the release of the 4Q06 GDP and CPI numbers this week. However, the slide in the Dow last Friday as well as the rebound in oil prices may dampen sentiment. The KLCI’s resistance now stands at 1,300 points with support at 1,278 points.