Daily Commentaries 8th Mar 07

The KLCI yesterday saw another day of active bargain hunting activities on blue chips with the index moving up 27.6 points or 2.7% on decidedly strong volume of 2.7b shares. In today’s headlines, EON Cap has raised its offer for RHB shares to RM1.97 per share from RM1.80 previously and similarly for RHB Cap shares from RM4.80 to RM5.00 per share. Also in the news is the revision of Protasco’s associate’s Libyan road maintenance contract to a higher value, the Sarawak State Government’s revision of electricity tariffs which will benefit Sarawak Enterprise Corporation, Lien Hoe’s proposed sale of the Atria shopping complex to OSK Property for RM75m and APB Resources canceling its HOA with PSC Petroleum. Despite the bullish sentiment yesterday, the overnight drop in US markets may still put a dampener on the mood today. Still, we believe the KLCI may edge higher towards the 1165 pts resistance level.