KUALA LUMPUR STOCK MARKET OUTLOOK: Forecast for Wednesday, July 04,
2007: Dow rally and strength of ringgit keeps index alive. Re-enter
property, construction stocks.

Technically speaking:

1. As at Tuesday's close at 1373.14 the KLCI was higher by 8.77 points or 0.64%. Gainers led losers 642 to 273. Volume traded reached 1.23 billion shares

2. Technically, many property, oil and gas and construction stocks were stopped out on Monday like EQUINE, SUNCITY, KEURO, E&O, E&O-WA,
PLENITUDE, EDEN, FAVCO, SAAG, etc.

3. Some of these rebounded yesterday, but we were not wrong in calling for a buy on other property, construction and oil and gas stocks that triggered a buy.

4. Stocks like BRDB, YTLLAND and YTLLAND-PA were excellent.

5. We were also right about MRCB, BURSA, COMMERZ*, BURSA-CB,
COMMERZ-CA, COMMERZ-CC*, GENTING-CB and new stock GENTING.

6. There is once again resurgence in interest in IDR stocks from the southern corridor yesterday. Stocks such as UEMWRLD, TEBRAU, EKOVEST are awakening again. So are other property stocks like MKLAND, SUNWAY, SUNWAY-WA, HUNZPTY, BRDB, FABER, etc.

7. Construction stocks like MRCB, GAMUDA, UEMBLDR, etc are also attracting buying interest.

8. In short see a resurgence of buying interest in many stocks, triggering buy signals in many of them. If we were stopped out of some of them, a chartist would re-enter buy.

9. GENTING was once a sell, but now it's a "buy" again, and we would not hesitate to "go with the flow" to buy GENTING and its warrant. So is COMMERZ, AMMB, BURSA, MRCB, TEBRAU, UEMWRLD, UEBLDR.

10. In short these are the stocks to watch for today: GAMUDA, GCORP, MRCB*, RANHILL, SUNWAY, UEMBLDR, UEMWRLD, AMMB, BURSA, SCOMI,
SUCCESS, CEPAT, DBHD, ENCORP, HUNZPTY, MKLAND, TEBRAU, GENTING*, FABER, PETRA, RCECAP, TWSCORP, BURSA-CB, BURSA-CC, GENTING-CB, MKLAND-WA, SUNWAY-WB, YTLLAND-PA, COMINTL, TAMCORP.

11. Also, we would want to mention here that we expect the positive Dow to keep the KLCI strong. Hence longer-term investors would like to "hold" onto stocks, as we see the Dow hitting 14,400 and our KLCI hitting 1494.

12. The ringgit closed slightly lower yesterday, from 3.4320 to 3.4440 or 120 pips, but news of the Malaysian government determined to keep the ringgit strong, and CNN News advocating to buy the ringgit vs the U.S. dollar should help Malaysian stocks.

13. As the KLCI closed at 1373.14, higher by 8.77 points, the short-term buy signal is intact.

CONCLUSION: We expect as a recovering Dow to rub off onto the Asian and
Malaysian market this week. So far we are correct. The KLCI stopped
exactly at the lower Bollinger band support of 1348 and rebounded to
close above it, at 1373.14. A breakout of the upper band at 1379 or
higher today would be a good sign of a possible explosive rally.

Long-term Upside Targets:1492 (Target amended on 15/6/07).

Immediate downside targets: 1348/1319/1291/1222