Daily Commentaries 30th May 2008

The KLCI closed largely flat yesterday despite the strong GDP numbers reported. For today, with US markets only up slightly but declining oil prices, we feel that the local bourse could face further selling pressure. Bumiputra-Commerce is suspended until Tuesday pending an announcement related to the merger of its Indonesian subsidiary, Bank Niaga with Khazanah owned Bank Lippo. Ramunia secured a RM35m contract by Sarawak Shell while Protasco won a RM81m road maintenance contract in Libya. With the mixed bag of results announced yesterday, the KLCI could well head towards its 1240 pts support level.