Daily Commentaries 3rd April 07

While the KLCI managed to sustain its posture in the morning session, sentiment turned decidedly cautious in the afternoon following external concerns and the quake in the Solomon Islands. News today includes Utama potentially making a capital repayment, CIMB taking a 25% stake in Tune Money, MAHB clinching a 10 year deal to manage the Kazakhstan airport and Suria’s proposed 2-into-1 capital reduction. We will not be surprised if the KLCI takes a further breather today with trading likely to remain range-bound. The silver living could come from Dow’s stronger overnight closure which was propelled by M&A newsflows. Support and resistance levels remained at 1222 and 1250 respectively.