Daily Commentaries 14th May 2008

The KLCI closed lower, led by profit taking on plantation stocks. Technical wise, the market has not completely closed down the massive “downside gap” ranging from the 1243 pts level to the 1296 pts level. Hence, immediate resistance remains at this gap. An additional resistance is seen at the 1313 pts level. To the downside, continue to look for an immediate support at the 1240 pts level. Corporate news today includes: MISC seeking more time to complete the due diligence on its Ramunia acquisition, Ircon International has won the contract to build, design and maintain the RM3.4bn rail project, Mudajaya has secured a RM15m contract and TM said it will invest RM1.9bn over a period of 10 years for broadband infrastructure in the Iskandar Development.