Daily Commentaries 7th Feb 07

KLCI continued its march upwards, closing 10.9 points higher on the back of heavy trading volume. Ringgit rose to the strongest in nine years after BNM clarified that it was not targeting any specific exchange rate levels. RHB continues to garner headline news. The Utama Banking Group is believed to have accepted a RM2.2bn offer from KFH to gain control of RHB. Other corporate news today are the award of RM113m worth of work for KNM and Kencana’s RM39m contract to build an offshore platform and structures. Meanwhile, DRB Hicom has clarified that it is not selling its stake in EON to EPF and AirAsia denied media speculation that it planned to raise money in a right issue. With the bullish performance over the past 3 days and the upcoming CNY holidays, profit taking is imminent. Nonetheless, the corporate results season this month is not likely to give any major signal to the KLCI. Resistance and support remains at 1,240 and 1,209 respectively.