Daily Commentaries 28th Mar 07

The KLCI stayed well above its closing on Tuesday to end the day with 2 points higher yesterday. Top corporate news for today: foreigners are allowed to own 100% stake in Islamic financial institutions in the country while FIC has relaxed some rules to account for this, IJM has signed a RM530mn agreement to jointly develop an integrated township in India, while Muhibbah and Nam Fatt have secured a combined RM1.01bn of the RM1.4bn petroleum hub and bunkering facility near Tanjung Pelepas. The government has clarified that it is still considering YTL’s proposal to build the KL-Singapore high-speed rail and no decision has been made. Two corporate results today are Gamuda and I&P. Despite the continued strengthening of Ringgit, Dow’s tumbled overnight due to worries that the nation’s weak housing market would seep into the broader economy and crimp consumer spending, may hamper sentiment on the local and regional bourses. The next resistance is pegged at 1,250 with immediate support at the 1,220 level.