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.