Economics & Banking Update
Financial services liberalization
– A ‘Small Bang’ approach…
Competition in financial sector to intensify gradually…
Following the liberalization of equity ownership in 27 non
financial services last week, the Government announced
liberalization measures for the financial sector yesterday. A
‘gradualist’ approach does not come as a surprise, as the
Financial Sector Master Plan had laid out a road map for
greater foreign participation by 2010-11.
Other Local News
Bank Negara: Tan Seri Dr Zeti Akhtar Aziz, pointed out
that OPR had been “front-loaded”
Axiata: Announcement of Headline KPIs for FY08
Ramunia: Currently engaging in preliminary discussion
with Sime Darby Engineering Sdn Bhd as a strategic
partner
Air Asia: Eyeing new associates in the Philippines and
Vietnam
Outside Malaysia
G-7: Says strength of recovery depends on clean-up of
banks' toxic assets
Mexico: Swine flu outbreak may deepen economic
decline
Germany: GfK consumer confidence holds steady for a
third month in May
Ireland: Banks may report EUR 22.5b of loan losses
Japan: Cuts economic forecast to record 3.3% YoY
decline for 2009
Japan: Pledges record JPY 13.9tr (USD 143b) budget for
stimulus
China: Current-account surplus may shrink, Zhou says
Hong Kong: Exports fall for a fifth month in March on global recession
Daily Technical View Points
Overnight US markets fell on worries that the swine flu outbreak
will have a negative impact on travel, energy and hotel
companies. The Dow Jones Industrial Average declined 0.64% or
51.29 points to 8,025.00. 
The KLCI plunged 12.56-points to close at 980.12 yesterday.
Investors may nibble on dips to the support areas of 957 and 974.
Profit-taking on rallies to the resistance areas of 980 and 996 will
cap market gains for now. A Key Bearish Engulfing Candlestick
Pattern high was sighted at 996.80 yesterday. As a result, the
KLCI could retrace to 965.95, 958.82 and 946.99 before heading
higher in the longer-term. As a result of the swine flu worries,
rubber glove manufacturers would rise. Among the technical buy
stocks that we like are: ADVENTA, AFG, AIRPORT, HARTA,
KLCCP, KOSSAN, SUPERMX, TOPGLOV and TWSPLNT.
Technicals
Daily Trading Idea
–
ADVENTA (RM1.07): FIRM BUY (Technical) 
ADVENTA made a low of RM0.60 in Nov ’08. The stock is
in a firm uptrend, confirmed by the positive crossover from
the indicators. We feel that ADVENTA will rise and test the
resistance of RM1.12 and RM1.32 and target levels of
RM1.24 and RM1.54.
FIRM BUY (TECHNICAL) on dips for ADVENTA with good
support areas at RM0.86 and RM1.07, with fine potential to
reach its stipulated resistance and target areas. Stop-loss is
at RM0.84.
Please refer to our full reports for further details.
Daily Trading Idea
–
SUPERMX (RM1.60): FIRM BUY (Technical) 
SUPERMX made a low of RM0.78 in Feb ’09. Indicators
confirm its very strong uptrend. As such, SUPERMX will rise
further and test the resistance of RM1.78 and RM1.96 and
target levels.
FIRM BUY (TECHNICAL) for SUPERMX, with strong support
areas seen at RM1.34 and RM1.60, with great potential to
reach its stipulated resistance and target areas of RM1.78 and
RM1.96. Stop-loss is at RM1.32.
From research by Maybank IB
