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.