Daily Commentaries 12th Mar 07

The KLCI stayed well above its previous closing level yesterday in a widely range bound trading. Among top corporate news today are IJM Corp’s idea to raise RM200mn from an IPO of its Indian contracting and property business, Maybank’s plans widen its overseas operations to make it account for at least a third of group revenue by 2010, and QSR may buy the A&W franchise. EPIC has confirmed that it is not in negotiation with the shareholders of Samudra while KUB clarified that it is identifying opportunities in O&G companies. The local bourse is expected to continue its range bound trend, supported by the strengthening of the Ringgit and strong economic fundamentals. News flow on blue chip companies can be expected over the three-day Invest Malaysia event, which will begin today. The Dow ended positive on good overall housing data, more M&A news, and relief in the troubled sub-prime mortgage space. Immediate resistance and support for KLCI stand at 1,214 and 1,200 level, respectively.