Daily Commentaries 5th July 07

The KLCI chalked up a 4 pts gain on a volume of 1.25bn shares after taking its cue from foreign markets. For today, Boustead announced plans to acquire a 45% stake in Royal & Sun Alliance Insurance (M) Bhd for RM148.8m while Petra Perdana signed a MOA to buy a RM49.7m anchor handling tug. The Plantation Industries and Commodities Ministry is coming out with the National Timber Industry Policy soon to help the timber industry move up the value chain. The shareholder agreement on the Penang Outer Ring Road is ready for submission to the EPU. BAT is raising its cigarette prices be between 8 to 14% after a rise in excise duty on tobacco. On a foreign front, Indonesia has capped new foreign investment in parts of the telecommunications and transport sectors while the buyout of Hilton Hotels by US private equity firm Blackstone Group lifted markets in Europe although US markets were closed for their independence day holiday. Without any negative news today with the exception of the continuing development at Megan Media, we expect the market to continue its run testing the 1380 pts resistance level.