Daily Commentaries 2nd June 08

Stocks such as Gamuda and Berjaya Land which have major property developments in Vietnam faced strong selling pressure due to the country’s sharply deteriorating macro picture. Nevertheless, overall market sentiment was not affected as the KLCI still managed to find its way back above the key 1270 pts level. News on Fitch raising its foreign and local currency senior unsecured debt ratings on TNB from BBB to BBB+ on above-average recovery expectations could attract buying interests on the stock today. Another major corporate news is that LCL is close to securing the first few packages of a major fit-out project for Dubai’s Meydan Racecourse. Today, we will see if the KLCI could sustain above the 1270 pts level. If the key index can continue to trade at above this level, it would mean that last Wednesday’s breakdown was just a fake breakdown.