Apr 21, 2009


WCT Berhad (RM1.45): Buy
–  In stronger waters after Meydan storm 
More positive news flows ahead. We have turned positive on
WCT  after  a  recent  company  update  as  prospects  for
domestic construction job wins are improving, while losses at
the  Meydan  Racecourse  job  (on  a  worst  case  scenario)
should  also  be  much  lower  than  originally  indicated. We
upgrade the stock to a Buy with a revised TP of RM1.70.

Proton (RM2.99): Trading Buy
–  Injecting Proton Edar into EON? 
Consolidation commendable but does not resolve LT survival.
The  Edge  reported  that  Proton  will  inject  Proton  Edar  into
Edaran Otomobil Nasional (EON), putting the latter back as
the  distribution  arm  of  the  national  automaker’s  vehicles.
There are currently no details on the proposal, which may be
announced as early as next month. While the consolidation
offers a glimpse into Proton’s road map, we think the greater
concern  remains  its  long  term  survival,  transformation  and

Axis REIT (RM1.39)
–  1Q results in line; 3.9sen DPU  
1Q09 net profit was within expectations. The Trust declared its
first  interim  DPU  of  3.9sen,  translating  into  an  immediate
gross yield 2.7%. With 19 properties under management, Axis
REIT is in a stronger position to face this global recession with
its diversified earnings and geographical base. Trading at 0.8x
P/NTA, the market has priced in a 12% correction to its net
property yield over the next 12 months.

Other Local News
   CIMB  Group:  Completes  19.99%  acquisition  in  Bank
   AirAsia: Planning big expansion in region? 
   Affin: Eyes Islamic operations in China
   KEB: Eyes RM3b West Coast Highway jobs
  Petronas Dagangan: Appoints new director
   Economy: Iskandar Malaysia on track to achieve USD13b
   Autos: Interest rates for car loans raised 
   Property:  Turf  club  forfeits  RM4.5m  from  PGCC
   SC: Approves six equity-capital raising proposals

Outside Malaysia
   U.S:  Stocks  tumble  as  financials,  commodity  shares
   U.S:  Leading  indicators  in  March  signal  recession  will
extend to second half of 2009
   Pakistan: Cuts interest rate to 14%, first cut since 2002
   Crude Oil: Drops to USD 45/bbl as equities tumble

klse technical chart 2009-04-21

Overnight US markets fell after Bank of America said it set
aside  USD13.4b  to  cover  lending  losses.  The  Dow  Jones
Industrial Average fell 3.6% or 289.60 points to 7,841.73.

The KLCI rose firmly to close at 965.37 yesterday. Investors
could buy on dips to the support areas of 944 and 965 as the
KLCI is poised to eventually attack the intermediate targets of
972.00 and 993.73 on route to 1,008.25 as its next stop. As
such, buy on dips while being sensitive to any downturn in the
KLCI,  using  942  as  its  key  short-term  stop-loss  point.  The
resistance areas of 972 and 993 may cap market gains for
now. The overnight fall in the Dow last may initially cause the
KLCI to decline today, but we feel that a late afternoon buying
spree will lift the KLCI up towards the close of the trading day.
Among the technical buy stocks that we like are: AIRPORT,
and YLI.

Daily Trading Idea
AEONCR (RM3.06): ACCUMULATE (Technical)

AEONCR made a low of RM2.40 in Mar ’09. The stock is in
a very strong uptrend, confirmed by the positive crossover
from the indicators, we feel that AEONCR will rise and test
the resistance of RM3.20 and RM3.42 and target levels of
RM3.14 and RM3.36. 
fine  support  areas  at  RM2.70  and  RM3.06,  with  superb
potential to reach its stipulated resistance and target areas.
Stop-loss is at RM2.66.

Daily Trading Idea
ORIENT (RM4.80): ACCUMULATE (Technical)


ORIENT made a low of RM4.28 in Mar ’09. Indicators confirm
the strong uptrend. As such, ORIENT will rise further and test
the resistance and target levels. 
ACCUMULATE  (TECHNICAL)  for  ORIENT,  with  strong
support  areas  seen  at  RM4.56  and  RM4.80,  with  great
potential to reach its resistance of RM4.96 and RM5.25 and
target areas of RM4.96 and RM5.25. Stop-loss is at RM4.52.

Daily Trading Idea
SUNCITY (RM2.00): FIRM BUY (Technical)


SUNCITY made a low of RM1.40 in Dec ’08. The stock is in a
very strong uptrend, confirmed by the positive crossover from
the indicators. As such, SUNCITY will rise further and test the
resistance of RM2.08 and RM2.28 and stipulated target levels.

FIRM BUY (TECHNICAL) for SUNCITY, with strong support
areas seen at RM1.74 and RM2.00, with great potential to
reach its stipulated resistance and target areas of RM2.22 and
RM2.46. Stop-loss is at RM1.72. 

Daily Trading Idea 
– INCKEN (RM0.29): SHORT-TERM BUY (Technical)


INCKEN  made  a  low  of  RM0.155  in  Mar  ’09.  Indicators
confirm  the  strong  uptrend.  As  such,  INCKEN  will  rise
further and test the resistance and target levels. 

  for  INCKEN,  with
strong support areas seen at RM0.23  and RM0.29, with
great  potential  to  reach  its  resistance  at  RM0.31  and
RM0.41 and target areas of RM0.35 and RM0.41. Stop-loss
is at RM0.21.

Daily Trading Idea 
– YLI (RM0.80): ACCUMULATE (Technical)


YLI made a low of RM0.50 in Feb ’09. Indicators confirm the
strong  uptrend.  As  such,  YLI  will  rise  further  and  test  the
resistance of RM0.86 and RM1.12 and stipulated target levels.

ACCUMULATE  (TECHNICAL)  for  YLI,  with  strong  support
areas seen at RM0.63 and RM0.80, with great potential to
reach its stipulated resistance and target areas of RM1.06 and
RM1.21. Stop-loss is at RM0.61.

Research by Maybank IB