Daily Commentaries 6th Mar 07

It was another nerve wrecking start to the week with the KLCI plunging 74 points at one point before recovering slightly to close 53.9 points down. At the close, Malaysia was the worst performing market in the region, shedding 4.6%. In the new today, Peugeot Citroen has ended talks with Proton for an alliance while M3nergy securing an oil and gas block off West Java. Both Putra Perdana and Crest Builder have also secured contracts for mixed developments projects in Kuala Lumpur and Damansara respectively. US markets closed weaker with bargain hunting short-lived by heavy profit-taking driven by continued fears of a global economic slowdown. With the 1136 support broken with relative ease, the next crucial support for the market now rests at 1096. We would expect the market to drift further on its strenuous path before making a recovery attempt.