Daily Commentaries 2nd Feb 07

The KLCI marched ahead on the final day of January racking up another 7.93 pts of gain to close just shy of the 1190 pts level. This brings its total gains since the start of 2007 to 93.11 pts, a sterling achievement for the Malaysian market. For the month of February we should likely see more such action continue ahead of the Chinese New Year although there may be some profit taking today after 3 days of gains. Unconfirmed sources stated that Kuwait Finance House plans to spend RM4.4bn to acquire Utama’s Stake in RHB Capital. Transportation related news also seems to be the flavour of the day with Scomi Engineering’s acquisition of a further 40% stake in its 51% owned subsidiary, MTrans while Fajar Baru secured a RM28.7m contract from KTM for staff quarters and a training school in Perak. Hubline is acquiring a 50.2% stake in another shipping company, Highline Shipping SB for RM86.6m. On the results front, Bursa Malaysia reported stronger results while Murphy’s deepwater gas find offshore Sabah may spur Oil & Gas stocks. Overall, attention may still remain on bluechips with both Telekom Malaysia and MAS having launched campaigns on Jan 31 to increase their customer base. Resistance is now at the 1192 pts level while support moves to the 1180 pts level.