Daily Commentaries 3rd July 07

The market did start on a positive note closing above the previous resistance of 1360 although volume traded was under 1bn, indicating the overall subdued undertone. Banking stocks contributed to the bulk of KLCI’s gains. Headline news today are massive losses posted by both Megan Media and Transmile – both counters will be re-quoted today. Excise duties of cigarettes have been increased to 15sen a stick from 12 sen a stick previously, resulting in a 60sen hike for a 20 stick pack. AirAsia plans for 25 more Airbus A320s, raising the total orders for the said aircraft type to 175. Aside from that, Naim Cendera has secured an RM88m road upgrading job in Sarawak while crane maker, Favelle has landed a deal to supply offshore pedestal cranes to Singapore’s Keppel Fels Ltd. Property companies should benefit more from the latest initiatives to introduce a matching grant of RM100m to establish Malaysia as a property haven. There is room for further upside on the KLCI today with the strong 126 points rally on the Dow last night. Immediate support now rests at 1360.