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
development
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
Technicals
Weekly Technical Viewpoint 
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) 
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.
ACCUMULATE (TECHNICAL) on dips for UNISEM at the
firm support areas of RM0.68 and RM0.83, with upside
target areas of RM0.91 and RM1.05. Stop-loss is at
RM0.66.
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
