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
relevance.
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
Yingkou
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
FDI
Autos: Interest rates for car loans raised
Property: Turf club forfeits RM4.5m from PGCC
developer
SC: Approves six equity-capital raising proposals
Outside Malaysia
U.S: Stocks tumble as financials, commodity shares
retreat
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
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,
AMWAY, AEONCR, ASTRO, AXIATA, DRBHCOM,
GENTING, KLCC, LINGUI, MAMEE, ORIENT, PROTON,
SUNCITY, TENAGA, UCHITEC 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.
ACCUMULATE (TECHNICAL) on dips for AEONCR with
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.
SHORT-TERM BUY (TECHNICAL) 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
