Daily Commentaries 27th Feb 07

The market took a breather yesterday as investors lock-in gains after the strong rally last week. In terms of key results announced last night, MAS was slightly below expectations while KNM, Dialog and Tong Herr were in-line. Notable business headlines today includes BNM keeping the OPR steady at 3.5%, Sime Darby to develop a 23.8ha land in Mont Kiara into a multi-billion Ringgit residential, office and commercial development, Tenaga planning to hive-off its Indonesia coal asset while Petronas buying gas from three offshore fields operated by Murphy. Given very little upside surprise on the results front coupled with crude oil prices holding above the US$61 per barrel weighing on the US markets, sentiment on the market may be capped. Immediate resistance is seen at 1283 with support at 1258.