Daily Commentaries 9th June 2008

Key indices in the U.S market tumbled more than 3% last Friday as crude oil price registered the largest single-day price gain ever, closing at a new record. May unemployment rate in U.S which jumped to 5.5% from 5.0% also dampened buying sentiment. On the local front, Ranhill and LOSB Caymen Ltd. have launched a takeover for the balance 29.6% shares in Ranhill Utilities at RM3.50 per share. There was also rumours of Heitech Padu being taken private by PNB. Our bearish bias view towards the near-term market is maintained. The KLCI is still at risk of re-testing the low of 1157.47 pts level as long as the market is still 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.