May 5, 2009


Result Update
Digi.Com: (Downgrade to Sell)
–  ARPUs down, margins squeezed

Weaker-than-expected start. We were looking for resilient
revenue and margin trends in spite of the softer general
economy.  Unfortunately,  DiGi  disappointed.  We  are  thus
lowering our net profit forecasts by 1.4-4.5% in 2009-11.
Investors should lock in profits now rather than wait for likely
further deterioration to manifest.

Other Local News 
Glove manufacturing: Double levy deferred 
Proton: MoU between Proton and EON still on table 
Ramunia:  Calls  for  speeding  up  of  east  Johor
Naza Kia: Expects its share of the local passenger car
market to grow to 10 per cent 
Retail: The government has capped the number of foreign
hypermarket licences at 107 
Politics: Government initiates review of the ISA 
Construction:  Bakun  project  improves  Sarawak
construction sector

Weekly Technical Viewpoint
The KLCI fell initially on swine flu fears but recovered well to
end at 990.74 (a 1.94-point loss WoW) last Thursday ahead of
the Labour Day holiday. The key support areas for the KLCI
are located at the 952 to 990-zone. This area should be a very
secure zone for bargain-hunting, while the resistance areas of
1,000 and 1,023 may see some profit taking activities. The
KLCI had previously consolidated in a tight range of 801 to
936 from Oct ’08 to Apr ’09, but broke above its previous key
resistance of 936.63 on 10 Apr ’09.

Since the current rise of the KLCI is “Flat”, investors should
not get caught at the end of this rebound move. The rebound
could  be of a sustained nature,  but  do not outstay the
“Pseudo-Bull’s” welcome.

The local market looks to rebound strongly for the next few
months, but be prepared to take positions off the table (near
the suggested target levels for the KLCI above); as we believe
that the run-up may not be sustained eventually.

Outside Malaysia 
U.S: Stress-tests results said to be delayed to May 7 as
banks debate findings 
U.S: March factory orders dip 0.9% MoM, ex-transport  
U.S: Michigan consumer sentiment index rises to 65.1
in April  
U.S:  Fed approves five-year TALF loans for bonds
backed by commercial mortgages 
U.K: Manufacturing index rises in April  
Japan: Jobless rate soars to four-year high in March,
prices drop as spending slumps 
China: Manufacturing expands a second month in April 
India:  Exports plunge by record in March as global
recession hurts 
S. Korea: Exports decline 19% in April

Weekly Trading Idea 
UNISEM (RM0.83): ACCUMULATE (Technical)
UNISEM made a weekly low at RM0.45 in Mar ’09. Positive
crossover  from  the  indicators,  support  our  belief  that
UNISEM is in the beginning stages of a weekly upward
trend which will test the resistance of RM0.86 and RM0.95
and upside targets in due course.
firm support areas of RM0.68 and RM0.83, with upside
target  areas  of  RM0.91  and  RM1.05.  Stop-loss  is  at

Daily Trading Idea
– MPI (RM4.82): ACCUMULATE (Technical)

MPI made a low at RM4.22 in Mar ’09. Due to its positive
crossover  from  the  indicators,  we  believe  MPI  is  in  the
beginning stages of a very firm upward trend which will test
the resistance of RM4.96 and RM5.50 and upside targets in
due course.
ACCUMULATE  (TECHNICAL)  on dips for MPI  at the firm
support areas of RM4.56 and RM4.82, with upside target
areas of RM5.25 and RM5.40. Stop-loss is at RM4.52.

From Maybank Investment Bank Retail Research