April 17, 2007

Daily Commentaries 18th April 07

The KLCI closed at another record high on the back of strong buying interest on blue chips despite the weakness in several major regional markets. This was also supported by the continued strong Ringgit as well as MIER’s upgrade of the GDP growth in 2007 and 2008. Steel-related stocks may see some trading interest today as the government raised the price of steel bars and billets by 20% to curb black market activities and ensure sufficient supply locally. Meanwhile, Magnum has denied any plans to return cash to shareholders while General Motors reiterated its interest in Proton. Opus International clarified that it has no conclusive plan to return excess capital to shareholders arising from the proposed listing of its subsidiary, Opus International Consultants Ltd. Although profit taking is imminent, the medium term outlook of the KLCI remains positive, backed by the strong fundamentals. Immediate support for KLCI stands at the 1,300 pts level followed by 1,285 and the 1,250 pts level.

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