Monday, May 07, 2007


KLCI ends +0.1% at 1365.28 in moderate volume, just off new all-time high of 1367.40, supported by gains on Wall Street Friday, firmer regional markets. Ringgit's strength vs. US$ (new 9 year high of 3.4140) and flurry of M&A activity lifted sentiment. These factors likely to help sustain momentum this week, tipping KLCI in 1350-1400 range for rest of week. YTL Corp +6% at MYR8 after bagging US$300 million contract to clean up Malaysian rivers. In surprise move, major shareholders of publisher Nexnews announced privatization plan while Boustead Holdings announced plan to privatize 38.5% owned building materials concern UAC. The market is a buzz with this M&A fervor and this is likely to keep interest buoyant. Also, Tenaga's decision to remove 25% foreign shareholding cap likely to drive shares higher tomorrow. However the critical support level is 1,350.

Well supported above RM3.00 - Next target:RM4.00. Watch closely RM3.00 support level if anything goes wrong.

Overall, the bias in prices is: Upwards.
Short term: Prices are moving.
The projected upper bound is: 3.28.
The projected lower bound is: 2.95.

(click on image to enlarge)

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