Daily Commentaries 8th Feb 07

Plantation and banking stocks helped the KLCI notch another close to 7 point gain yesterday with volume hitting a record 2.35bn shares mark. Positive sentiment appeared to be spreading with gainers outnumbering losers although the second board still lost ground. Big news today would be RHB Cap confirming that it has received an offer from EON Cap to acquire its entire business for the equivalent of RM4.80 per RHB Cap share while shareholder RHB has received a counter voluntary offer from EON Cap for all its shares at RM1.80 per share. Sanbumi provided further details of its business collaborations with airlines flying between Malaysia, Taiwan and Cambodia. Alam Maritim has received an RM18.1m LOI from Talisman to charter 1 of its anchor handling vessels while Coastal Contracts received MOAs worth RM243m for the sale of 7 offshore vessels over the next 2 years. AirAsia expects AirAsia X to start its services by September while its CEO’s private ventures, Tune Money and Tune Hotels are also expected to be launched soon. With all this positive newsflow, we feel that the market may continue its march ahead today towards the next resistance level of 1250 pts while support moves to 1226 pts.