Daily Commentaries 26th June 07

As expected, the market did stage a breather with profit-taking on key heavyweights, Tenaga, IOICorp and Maybank weighing on the KLCI. Market breadth was generally mixed with sustained interests on lower liners. News today came in the form of Gamuda's proposed 1-for-1 bonus issue, Tenaga and Eden securing a power plant job in Sabah as part of a consortium and MRCB in a maiden property development project in Penang. In addition, Kencana has bagged 2 contracts worth RM40m while MAS has inked an agreement with Avion de Transport Regional (ATR) for the purchase of turboprop aircrafts for Firefly. Tanjong reported 1QFY08 results that came in below expectations while Gamuda' s 3Q numbers were within. The KLCI is likely to range-bound with the previous support of 1380 acting as the immediate resistance. Support retreats to 1370.

Daily Commentaries 25th June 07

The KLCI closed above the 1390 level last Friday in what has been a remarkable week with over 20 points gain in the benchmark index. News out of the weekend include Kulim exiting its Indonesian plantations business, Scomi bidding for global jobs worth RM11bn and Hai-O proposing a bonus issue and subsequent transfer to the Main Board. FAX may also see the entry of Virgin Group's Richard Branson as a key shareholder. Aside from that, Magnum told shareholders at its AGM last Friday that it was not contemplating a capital repayment nor plans to take the company private while Bank Rakyat is said to be eyeing a stake in MBSB. The market may take a breather in the short-term to digest recent gains but rotational interests among the lower liners will continue to stir sentiment and sustain the robust trading volumes. On the external front, investors will also be looking for cues ahead of FOMC's meeting in the US come June 27. Stronger support and resistance levels for the KLCI are at 1380 and 1400 respectively.

Daily Commentaries 20th June 07

The KLCI ended firmer with continued interest in second liners while regional markets closed firmer yesterday. Main corporate news today is AMMB's offer of RM3.70 for the 49% share of AIGB and MAS's new management team to take it to the second phase to turnaround. TM’s CEO said the company’s expansion plan will be driven by demand and expects 3G customer base to accelerate in 2008. Pilecon has signed an MOU with the West Java government to develop water resources infrastructure while Bina Puri secured a RM8.6m contract in Brunei. The KLCI is likely to trade rangebound after Dow’s positive performance last night, testing the immediate resistance of 1,375.

Daily Commentaries 4th June 07

Despite the modest volume and the expected sell-down on Transmile, the KLCI actually closed 13 points higher on the back of follow through buying of blue chips last Friday. Oil and gas stocks dominated the active list with Deleum chalking a hefty 64% gain on its maiden day of listing. Headlines out of the weekend includes Plus buying 2 highways from parent, UEM Group for RM802m and the government possibly ceding control of Proton in its final bid to find a strategic partner for the car maker. Continuing on the Transmile saga, Khazanah Nasional has ordered a further probe into the air cargo operator while stating that the impact on Pos Malaysia is likely to be small. MOL Access Portal is likely to be the next on Tan Sri Vincent Tan's privatisation list, following that of Nexnews, Berjaya Corp and Cosway. Despite the mixed newsflows, we feel that the KLCI has the tenacity to resume its upward march towards the resistance of 1370.