Daily Commentaries 4th June 2008

As expected, the market continues to slide in the absence of fresh leads as investors anxiously await the revelation of the new fuel subsidy scheme today. Other notable headlines are Petronas suing India’s Andani Energy for US$100m, Tenaga saying that it will not overpay for Genting’s power assets and a possible 5% windfall tax to be levied on IPPs. The country’s export growth for April also came in a stronger than expected 20.9% yoy due to higher shipments of crude palm oil and petroleum products. We would expect the market to range bound today with immediate support still at the 1260 level. The lower overnight close on the Dow should continue to dampen regional sentiment.