Daily Commentaries 10th June 2008

The KLCI gave up most of the gains notched last Friday, closing 17 points lower following the sell –down on TNB which knocked 6 points off the index. Headlines today are in the form of higher costing for the 2nd Penang bridge, Yeo Hiap Seng being sued for an alleged breach of a distribution agreement and KUB sealing a ICT contract for schools in Selangor. The KLCI is still at risk of re-testing the low of 1157.47 pts level so long as the index is stuck in a downtrend. A dip below the immediate support of 1216 pts level would likely see the key index falling towards the 1157.47 pts level.