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.