Daily Commentaries 13th Mar 07

The market cruised past the 1,200 level yesterday with strong buying of Genting and Resorts providing the lift. Retailers were also seen snapping- up few Mesdaq and second liners deemed situational beneficiaries. Tanjong Offshore is in the news today with a RM430m contract from Murphy Oil for offshore drilling. PNB is also looking to take MIDF private while Kuwait Finance House (KFH) which lost the bid to take over RHB Group has indicated that it is still keen to have equity participation in the entity. With the firmer overnight close in the US market, oil price staying below US$60 per barrel coupled with the certainty provided by PM’s statement that an election will only be called when the feel good factor improves further, we do expect a continuum of the upside today with the resistance zone at between 1189-1240.