Daily Commentaries 25th May 07

The KLCI continued to suffer from profit taking with what appears to be selling pressure from foreign funds. We believe that the market may continue to struggle today given the school holidays next week and some remaining foreign selling. Oil & Gas news seems to be the theme for the day as Ramunia announced a MOU with Indian company Punj Lloyd to collaborate in submitting a bid document for the US$1bn Mumbai High North O&G project, Favelle Favco proposed a move from the Second Board to the Main Board of Bursa Malaysia and Naim Cendera announced the acquisition of a 45% stake in a group of oil & gas companies providing maintenance and marine vessel services for RM87.8m. Alam Maritim also proposed a 3-for-8 bonus issue and a subsequent 1-into-2 share split while Welli Multi confirmed its MOU with Hadhari Cattle Industry to build a state-of-the-art Halal Gelatin Plant. Support remains at the 1335 pts level.

Daily Commentaries 23rd May 07

The KLCI closed at another historical high, signaling optimism on the health of the government’s revenue and continued strengthening of the Ringgit. Regional markets also ended the day on a positive note. Interest in Ranhill should continue today as the firm is said to be finalising talks with Trans-Peninsula Petroleum Sdn Bhd to develop a US$7bn oil pipeline project across northern Peninsular Malaysia. Further consolidation in the telco industry can be expected as Time Engineering is ready to sell its shares in Time dotCom to resolve its debt, while Telekom has further sold its stake in Dialog. Details on lower LCC terminal charges is anticipated to be announced today while notable corporate results were released last evening: OSKVI, MRCB, CCM, KFC, BERNAS and MOX. Meanwhile, the Second Finance Minister has stressed that the government will not bail out Proton and is still seeking a strategic partner for it while KFC clarified that it has no knowledge of any fresh bid for the shares of QSR Brands. The local bourse will likely react positively to the positive local macro newsflows as well as DPM’s assurance that there are no plans for an increase in fuel prices. Resistance level remains at 1,370 points.

Daily Commentaries 10th May 07

The KLCI closed down 3.83 pts dragged down by blue chips such as Digi, Transmile and Sime Darby. For today, Oil & Gas counters are still in the news with Muhibbah Engineering securing a RM41.4m contract in Sudan and Kencana Petroleum a RM132m contract to build platform structures offshore Bintulu. Telco shares too are in the limelight with both Time dotCom and Green Packet viewed as potential partners for Digi in broadband services. Nexnews received a take over offer from Net Edge Online SB and Tan Sri Dato’ Seri Vincent Tan priced at RM1.27 per Nexnews share and RM0.27 per Nexnews warrant. Java Incorporated is buying a timber concession in Sabah for RM28m. After its recent consolidation, the KLCI may resume its upward trend today although investors may still feel the jitters arising from the issues surrounding Transmile. Still, the decision by the US Fed to maintain interest rates should give the market a leg up. Support and resistance remain at 1332 and 1380 pts respectively.