Daily Commentaries 20th Mar 07

Despite the 10 points rise on the KLCI, the broader market was generally weak with trading volume hitting another low of 937m shares. Among key corporate headlines today are Samudra's contract from Petronas Carigali for turbular handling equipment, IOICorp's 1-into-5 share split and TM's revelation of its FY07 and medium-term KPIs. Meanwhile, expectations are running high for the government to scrap the Real Property Gains Tax (RPGT) that may be announced at the Invest Malaysia conference tomorrow. Given the strong rebound on the Dow last night, we do expect the KLCI to trend higher today with the immediate resistance at 1200 level. Support is now seen at the 1159 level followed by 1150.