Daily Commentaries 9th Mar 07

Judging from yesterday’s rise in the KLCI of 30.48 pts on a volume of 2bn shares, it would appear that optimism is returning to the Malaysian market. News today includes Utama Group accepting EPF’s revised offer for its stake in RHB, the potential delay of AirAsia X on the lack of suitable planes and CBIP announcing new contracts worth a total of RM29.2m in relation to the construction of palm oil mills. Johan Holdings announced a management agreement to supervise development of a retail project in China with a gross project value of RMB500m while KPJ will manage 2 private hospitals in Jeddah. Leader Universal entered into a JV to build and operate a 200MW power plant in Pakistan. With US and European markets rising overnight, we do see the market sustaining its uptrend. The technical view for today sees a big resistance range from 1190 to 1240 pts. Immediate support is at 1150 pts.