Apr 22, 2009

KLSE Market Research 22 April 2009

By: Maybank IB

Resorts World (RM2.33): Buy
Home is where the heart is
We maintain our Buy call on Resorts and upgrade TP to RM3.10. It stays one of our favourite gaming group as we believe that earnings will remain resilient even after the two integrated resorts in Singapore start operations. Also, there is lower risk of RPTs and cash calls on its cash pile, and rising M&A potential. It trades on low 8x 2010 PER ex-cash.

Other Local News
: Not selling retail arm to EON
Tenaga: Repurchase and intended cancellation of debentures
AmBank: targets RM5.7b in branches' deposit growth
Sime: Seeks buyer for hotel
C&C Bintang: 14% jump in Q1 net profit
Technology: WiMAX service tie-up
GPacket: UK associate to be de-listed
Auto: Vehicle sales for January-March period decline 9%
EON Cap: Board to decide soon on rights issue.
Water: Syabas freezes RM2.6b pipe project on govt orders
Firefly: Takes off for Singapore in June

Outside Malaysia
: Says global losses from credit crisis may reach USD 4.1tr by 2011
IMF: Colombia taps for USD 10.4b credit line as GDP shrinks
U.S: Geithner says most banks have enough capital
U.S: Regulators said to put greater emphasis on loan quality in bank tests
Germany: Investor sentiment increased to two-year high in April, ZEW shows
U.K. Inflation rate in March drops to lowest level in a year
India: Cuts interest rates on slower growth estimate
Thailand: To cut government spending by 13% YoY next year

The market still closed lower, despite some a mild rebound from earlier losses.

Daily Technical Outlook
The KLCI declined slightly to close at 966.60 yesterday. Investors
could buy on dips to the support areas of 944 and 966 as the KLCI is
poised to eventually attack the intermediate targets of 972.00 and
993.73 on route to 1,008.25 (2.62 extension ratio of this current
minor Wave 3/4C rise) as its next stop. This “rebound run” is still part
and parcel of a Wave 4 Flat (3-3-5) correction off its 801.27 (Major
Wave 3) low. 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 gains in the Dow last night may bolster confidence of
local investors today, and will see the KLCI moving back to higher
levels. Among the technical buy stocks that we like are: AIRPORT,

klci chart

52 Week High  :  1,305.09
52 Week Low  :  801.27       
CCI : Positive
Support S1/S2  :  944 & 966  DMI  :  Positive
Resistance R1/R2  :  972 & 993  MACD  :  Positive 
Oscillator : Positive
Upside target T1/T2  :  972 & 993  RSI  :  Overbought (76)
Stop-loss  : 942  Stochastic  : Positive
Upward Period  :  2 days to 2 months  Trend  :  Up 

Daily Trading Idea

(Stock Code: 2968)  (Bloomberg Code: GPH MK Equity)


Daily Trading Idea

(Stock Code: 2194)  (Bloomberg Code: MMC MK Equity)


MMC Corporation Berhad (MMCCORP) operates a container port, provides power generation, distributes
natural gas, and provides engineering and construction services.

Board / Sector   :  Main / Trading/Services
CCI : Positive
Par Value   :  RM0.10
DMI : Positive
Market Cap.   :  RM5.7b
MACD : Positive
52 Week High   :  RM3.78
Stochastic : Negative
52 Week Low  :  RM0.95
Oscillator : Positive
Book Value / Share   :  RM2.01
RSI  :  V Overbought (82)
Beta vs. KLCI  :  1.22 
Dividend/share : RM0.05
Support S1/S2  :  RM1.65 & 1.84
Historical EPS  :  17.3sen
Resistance R1/R2  :  RM1.91 & 2.10
Historical P/E  :  10.7x
Trend : Up 
Historical Ind. P/E  :  16.2x
Upside target T1/T2  :  RM2.34 & 2.42
Historical Net Profit  :  RM527.4m
Stop-loss : RM1.63
Avg. Daily 3mth Vol.  :  2.76m shares
Upward Period  :  2 days to 2 weeks

MMCCORP made a Wave 2 low of RM1.07 in Jan ’09, with grossly oversold signals. Indicators that confirm
the strong Wave 3 uptrend are the positive CCI, DMI, MACD and Oscillator signals. As such, MMCCORP will
rise further and test the stipulated resistance and target levels. 
ACCUMULATE (TECHNICAL) for MMCCORP, with strong support areas seen at RM1.65 and RM1.84, with
great potential to reach its stipulated resistance and target areas of RM2.34 and RM2.42. Stop-loss is at

Research by Maybank IB