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.