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.