Daily Commentaries 20th May 2008

The market finally broke the 1,300 level on selective blue chip support although trading volume remained thin. Key headlines over the long weekend and this morning are the RM15bn investment in Iskandar Malaysia by India- based builder, BSEL, Sime Darby indicating that the Bakun undersea cable project hasn't been delayed while Wijaya Baru has signed a MOU with the Vietnamese authority to bid for infrastructure projects worth US$3bn. Confirming earlier speculation, Intel Capital has inked an agreement with Green Packet which will see the former investing RM50m in the form of convertible bonds. On the political front, Tun Dr. Mahathir has decided to quit UMNO to the surprise of many. EON Capital also revealed a decent set of 1Q numbers. With little by way of fresh leads, the upside on the market could well hinge on the current reporting season where investors would assess the performance of key heavyweights in light of the economic challenges. With the immediate resistance breached, the next resistance is seen at 1313.