Thursday, November 29, 2007

Sime Darby May Push The Index

KLCI ends +0.6% at 1374.32 in modest volume, recovering from intraday low of 1366.21 in last hour of trade with local funds propping up a range of index-linked issues and heavyweights. Market breadth ended positive with advancers leading decliners 499 to 269. Benchmark expected to open higher tomorrow possibly gap-up between 10 to 14 points on relisting of Sime Darby and trade in 1380-1390 range. Sime Darby will be requoted at MYR8.90 tomorrow, may rise 18-24% to between MYR10.50 to MYR11. Newsflow from both the external and domestic fronts was positive on hopes of another rate cut in the U.S. and better-than-expected third quarter GDP growth (in Malaysia). Buying interest from local funds helped mitigate profit-taking, priming the market for Sime Darby's relisting tomorrow.


No comments: