Daily Commentaries 2nd Mar 07

As expected, selling pressure continued yesterday although it seemed to have eased slightly with volume dropping to only 2.4bn shares and the 1170 pts support level holding up. For today, corporate news is in the form of Genting International saying that it will ensure that it met all the requirements for a casino license in Singapore including reviewing its Macau deal. Banks are in the news with Bank Negara approving ANZ Banking Group’s proposed equity participation in AMMB Holdings while rumours surfaced that DRB-HICOM has received BNM approval for talks to dispose its 20.2% stake in EON Capital to Newbridge Capital. Bursa Malaysia’s link up with the Singapore Exchange may be delayed to next year while MAS is selling its hotel and land in Langkawi to a Saudi group for RM435m. For today, despite selling pressure likely to be easing, the overnight fall in US markets may mean that the KLCI may at best be rangebound. The 1170 pts support level has to continue to hold for the market to stage a rebound in the short term. Resistance is at 1196 pts.