Daily Commentaries 6th Feb 07

Despite the overbought conditions, the KLCI forged ahead to close another 16 pts up into uncharted territory. Extended programmed buying by foreign funds swamped blue chips with notable index movers coming in the form of Genting, MISC and IOI Corp. Call warrants remained the flavour of the day for retailers. RHB is again in the news today with KFH unveiling plans to create a world class Islamic Bank via a RM12bn investment while UBG is slated to meet as early as today to consider the concerted bid by EPF and EONCAP. WCT is also set to clinch a RM1.5bn job in the United Arab Emirates, boosting its order book to RM5bn. Meanwhile, EPF has declared 5.15% dividend for 2006. With the near 30 points gain over the past 2 trading sessions, there is still the likelihood of a breather although the bulls will continue to hold the upper hand given the current bullish environment. Resistance and support are pegged at 1240 and 1209 respectively.