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FBMKLCI: Long term rejection of globalism or just a blip?

A new cold war in the form of trade and currency war has emerged. They are here to stay and has become a new norm for the global markets.

Markets will adjust to the new norm. Markets need trade certainty but unlikely to see trade deal taking shape before 2020 presidential election.
For local bourse, it is the domestic factors that are keeping investors in the sidelines.

Technically the index gave up the support at 1626 with the MACD line remains in negative territory and below signal line.

Support is at 1600 followed by  1572.

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Disclaimer: None of the content published on Bursa Chat constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

If KLCI go below 1611.91, selling pressure will continue!

Looking at the chart, index must close above 1646.96 (C) or else there is likely 1614.4 (B) will be tested.

DJ MARKET TALK: Malaysia KLCI +0.3%; 1620-1630 Resistance - Affin

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0243 GMT [Dow Jones] Malaysia's KLCI is up 0.3% at 1612.67 tracking gains in most Asian stock markets with all sectors in positive territory except for plantation stocks. "This week's bullish reversal and a dramatic shift in technical indicators in the last two days may inspire more aggressive buying and upside for KLCI toward the mid-November high of 1630," says Affin IB. The house pegs 1620-1630 as the resistance zone while support remains at 1580-1600. Market breadth is positive at 237 gainers vs 134 losers with 221.1 million shares changing hands. Among the most active benchmark stocks, Maxis (6012.KU) is up 0.2% at MYR6.45, UEM Land (5148.KU) up 1.0% at MYR2.10 and AMMB Holdings (1015.KU) is up 0.3% at MYR6.45.

DJ MARKET TALK: Malaysia Shares Likely In 1600-1617 Band - HwangDBS

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0046 GMT [Dow Jones] Malaysia shares will likely struggle to find more upside after the benchmark KLCI staged a technical rebound Wednesday; "On the chart, we reckon the KLCI will likely run into resistance at the 160-day moving average line which presently hovers at 1617," says HwangDBS. Immediate support is seen at the psychological 1600 mark, the house adds. The KLCI ended up 0.5% at 1606.52 Wednesday. Among stocks in focus, Maxis (6012.KU) may fall after its latest quarterly profits came in below expectation, while Axiata Group (6888.KU) is scheduled to release its quarterly results during the midday break

DJ MARKET TALK: Malaysia's KLCI 10% Potential Upside In 2013-AmBank

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0502 GMT [Dow Jones] Malaysia's benchmark 30-share KLCI has potential upside of about 10% through 2013 from its current level, to be driven by robust economic growth led by the Economic Transformation Program, says AmBank. Malaysia's KLCI has lagged Asean peers this year, and has risen only about 5% compared to more-than-20% gains in the Philippines and Thailand. "On the flip side, this relative under performance also underscores prospects of outperformance post-General Elections 2013 because its premium valuation has narrowed," says the report. The house tips under a base-case, for the KLCI to be fairly-valued at 1,770 by 2013-end based on trend-average 15X FY13 earnings. The KLCI is currently up 0.4% at 1604.84 midday break.

DJ MARKET TALK: Malaysia's KLCI Down 0.4%; May Fall Towards 1563 - HL

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0242 GMT [Dow Jones] Malaysia's KLCI is down 0.4% at 1593.38 as investors continue to lighten their portfolios ahead of the year-end as well as a general elections that must be held in the country by early next year; so far this month, the benchmark index has declined almost 5%, spending most of the month trading in negative territory. "In the near term, trading sentiment on Bursa Malaysia will remain bearish, mainly attributable to the uninspiring ongoing 3Q results season and local election risks," says Hong Leong IB. The house tips the KLCI to drift towards 1583 and 1563 before a more sustainable rebound kicks in. Market breadth is negative at 310 losers and 134 gainers with 325.0 million shares changing hands. Among top losers on the benchmark index, Petronas Chemicals (5183.KU) is down 2.6% at MYR5.93, Genting Malaysia (4715.KU) is down 2.3% at MYR3.43 and UEM Land (5148.KU) is down 0.9% at MYR2.13.

DJ MARKET TALK: KLCI Likely Stuck In Range; 1334-1344 Tipped
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0024 GMT [Dow Jones] KLCI likely to open flat, taking lead from U.S. stocks' flat finish overnight, says dealer with local brokerage; thinks index likely trapped in 1334-1344 range in absence of fresh catalysts. "Blue chips should continue to be well-supported due to the positive growth outlook on the domestic and global front, while lower liners remain in consolidation with slight downward bias," says TA Research; tips KLCI's immediate support at 1329, followed by 1320 (50% Fibonacci Retracement of the 12-day rally from 1292 low of March 22 to April 7's peak of 1347), while resistance remains at 1344 (the previous two week's high), then 1347, (April 7's pivot high). KLCI ended +0.2% at 1340.07 yesterday. Allianz Malaysia (1163.KU) may fall after insurer announced plans to raise MYR611 million through rights issue of convertible preference shares.


DJ MARKET TALK: USD/MYR Higher; 3.1700-3.1900 Range Tipped
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0032 GMT [Dow Jones] USD/MYR higher at 3.1810 vs 3.1725 late Monday, tracking USD/Asians, says dealer with local bank. "The ringgit is weakening more than the other Asian currencies because it was one of the best performers in the year-to-date, rising more than 6%," says dealer; adds, market participants also keeping on eye on developments in Greece for near-term direction. Tips pair to move in 3.1700-3.1900 range with upside bias.



DJ MARKET TALK: Allianz May Fall To MYR5.30 On Rights Issue Plan
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0014 GMT [Dow Jones] Allianz Malaysia (1163.KU) may fall to MYR5.30 (April low) after insurer announced plans to raise MYR611 million through rights issue of convertible preference shares; issurance ratio, pricing yet to be determined, rights issue aimed at raising funds to repay existing debt, to meet Bank Negara's capital requirements. Company says immediate earnings dilution would be minimal since convertible shares can be converted into ordinary shares only 12 months after issuance completed; pricing and ratio for share issuance to be determined later. "There will still be some impact on sentiment, though the fact that any dilution will only happen later should help prevent any steep drop in the share price," dealer says. Allianz ends +4.3% at MYR5.56 yesterday.



DJ MARKET TALK: Tejari May Rise To 35.5 Sen On Profit Hopes
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0003 GMT [Dow Jones] Tejari (0140.KU) may rise to 35.5 sen (January 2009 high) after signing to buy 51% stake in two computer products dealers for total of MYR9.3 million; company says acquisition of PC3 Technology Sdn Bhd, which sells Acer and Canon products, comes with profit guarantee of MYR2.4 million over 32-month period while acquisition of Essential Action Sdn Bhd, which sells Lenovo products, comes with MYR1.5 million guarantee over same period; dealers say acquisitions significant for Tejari, which posted loss of MYR2.4 million in FY09. "The company could return to profitability by as early as this fiscal year because of the contribution from the new companies," dealer says. Tejari ended +61% at 25 sen yesterday.

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DJ MARKET TALK: KLCI +0.1 On Tech Stocks; Broad Market Mixed
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0439 GMT [Dow Jones] KLCI +0.1% at 1336.16, off earlier intraday high of 1341.52; technology stocks among biggest advancers, but other sectors mixed amid profit-taking on recent top performers. "The market started strongly following a positive cue from Intel's results, but the KLCI's failure to break out of it's week-long trading range spurred fresh selling pressure," dealer says; market's gains also capped by negative near-term technical signals, analysts say. Maybank Investment Research says if 1331 support is breached, "signs of a persistent steeper correction will emerge." Volume at 359 million shares, below recent midday average of 450 million-500 million. Among gainers, Unisem (5005.KU) +4.7% at MYR3.14, Green Packet (0082.KU) +4.5% at MYR1.15, JCY (5161.KU) +2.3% at MYR1.76; among decliners, Measat (3875.KU) down 4.8% at MYR3.36, Tan Chong (4405.KU) down 3.7% at MYR4.75

DJ MARKET TALK:AmResearch Keeps RHB Capital At Buy;MYR7.20 Target
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0358 GMT [Dow Jones] AmResearch keeps RHB Capital (1066.KU) at Buy, with unchanged target price of MYR7.20; says banking group maintaining loans growth momentum, confident of achieving 15% growth in FY10; notes upside potential from bancassurance tie-up, following exclusive agreement with TM Asia to sell life insurance products for 10 years; RHB Capital intends to maintain dividend policy of 30% of net earnings. "There is a good chance RHB Capital may turn into a strong dividend paying stock over the longer-term," house says; adds despite recent rise, stock still "deeply undervalued" at 1.5X book value vs sector average of 2.0X. Stock +0.8% at MYR6.00.

DJ MARKET TALK: Affin Ups Petra Perdana To Add, Target To MYR1.81
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0343 GMT [Dow Jones] STOCK CALL: Affin Research ups Petra Perdana (7108.KU) to Add from Reduce, target to MYR1.81 from MYR1.38 given expectations of earnings turnaround next year, primarily driven by higher vessel utilization and improvement in charter rates. "As all new vessels will be delivered before end 2010, bulk of the vessels' mobilisation costs and finance costs will be incurred this year," says analyst Loong Kok Wen; adds next year, house expects Petra to be able to secure charter contracts for most of its new vessels, thereby better match its heavy interest commitments (both on and off balance sheet financing; hence raises house FY11 earnings forecast for Petra by 24% to MYR39.8 million, FY12 by 19% to MYR49.1 million but trimmed FY10 forecast by 6% to MYR9.6 million as earnings will remain weak. Stock last down 0.6% at MYR1.65


DJ MARKET TALK: MRCB Flat; May Clinch Development Jobs - HwangDBS
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0257 GMT [Dow Jones] Malaysian Resources (1651.KU) unchanged at MYR1.59, unaffected by key shareholder Employees Provident Fund's decision to allow takeover offer of MYR1.50/share to lapse, after EPF received acceptance amounting to only 3.3% stake. Dealers say EPF, which owns 38.6% of MRCB, unlikely to raise offer price; note earnings outlook for MRCB remains bright as property sector recovers. HwangDBS Vickers Research maintains Buy call on MRCB, with MYR2.25 target price; tips MRCB to be prime beneficiary of federal government's plan to develop 3,400 acres of land in central Selangor state as EPF has been tasked to spearhead project. "Besides this land, we do not discount MRCB participating in other lucrative government land (projects)," says HwangDBS.

DJ Asia Investors Optimistic In 1st Quarter But Risk Appetite Low - Survey
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HONG KONG (Dow Jones)--Investors in Asia stayed fairly optimistic in the first quarter, but risk appetite remained low to moderate, according to the latest quarterly ING Investor Dashboard Survey.

ING's investor optimism index has remained around the same level over the past two quarters, coming in at 145 in the three months ended March 31 and 147 in the fourth quarter, double a low of 73 during the global economic crisis.

Investor sentiment in China and India continued to be the strongest in the region despite credit and monetary policy tightening in China and rising food inflation in India. Investors in Hong Kong and Singapore also stayed fairly optimistic. Currently, 73% of Hong Kong investors and 70% of Singapore investors expect a rise in local residential real estate prices in the second quarter.

Optimism in Southeast Asia was mixed, with investors in Malaysia and the Philippines being more optimistic while those in Indonesia and Thailand became more cautious because of political instability.

Despite the overall optimism, investors' appetite for risk remains "low to moderate," the survey found. Investors have been cautious of economic developments in the U.S. and China, and have been awaiting signs that the U.S. recovery will boost the job market before increasing investments.

Investors are also expecting inflation and higher interest, with 57% of survey participants--excluding those in Japan--expecting inflation to rise in the second quarter and 53% of Asia ex-Japan investors expecting domestic interest rates to rise during the quarter.

The ING Investor Dashboard survey tracks investor sentiment of "mass affluent" investors each quarter across 12 Asian markets. "Mass affluent" is defined as investors with disposable assets or investments of US$100,000 or more. The threshold for investors in the Philippines and Indonesia was lower at US$60,000. The survey is conducted by ING Groep (ING) with the Nielson Company.




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DJ MARKET TALK: KLCI May Rise; Banks May Lead; 1329-1340 Tipped
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0025 GMT [Dow Jones] KLCI may rise slightly, tracking gains in U.S. stocks overnight; benchmark index ended 0.9% lower at 1332.93 yesterday. "Following yesterday's drop, investors may do some bargain-hunting coming in today, given the positive long-term outlook for the market and the local economy. But with the weekend coming, the market will probably remain within a tight range," dealer says; immediate support pegged at 1329, with resistance at 1340. Interest may be centered on banking stocks, particularly investment banking leader CIMB (1023.KU), amid an increase in corporate finance activities after state oil company Petronas announced plans to list two units, which had combined revenue of MYR17 billion in FY09.


DJ MARKET TALK: Bina Puri May Rise; Thai Unit Gets THB63M Job
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0012 GMT [Dow Jones] Bina Puri Holdings (5982.KU) may rise to MYR1.18 (yesterday's intraday high) vs yesterday's close at MYR1.16 (down 0.9%), says dealer; this after company says its Thai unit gets THB62.8 million contract from Melewar Integrated Engineering for design, building of warehouse including foundation, RC & steel structure, architecture, M&E, associated external works for Sime Ice Co.'s cold room facility at Rayong, Thailand. Bina Puri says award will boost earnings; "with the award, the group's current order book stands at MYR1.80 billion," it adds. Dealer says although contract not large (only about MYR6.3 million), but hopes of stronger flow of building contracts had been boosting shares of late; "this award may start the ball rolling again."

DJ MARKET TALK: Jaks May Rise; To Build 2 Vietnam Power Plants
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0019 GMT [Dow Jones] Jaks Resources (4723.KU) may rise to MYR0.925 (yesterday's intraday high), then later psychological MYR1.00 vs yesterday's close at MYR0.905 (+0.6%), says trader; this after water-management construction firm says signed $2 billion deal with Vietnam authorities to build two 600-megawatt coal-fired power plants. Says projects to be developed under "build-operate-transfer" follows signing of 25-year power purchase agreement with Vietnam Electricity. Work on plants will begin in 4Q, with the first ready for commercial operation in 4Q 2014; second by 2Q 2015. Trader says agreement "significant" for Jaks for a number of reasons; "this is a major overseas project and it also provides the group with recurring rather than project-based income." (


DJ MARKET TALK: TPC Plus Likely Flat; LonBisc Offer Unattractive
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0030 GMT [Dow Jones] TPC Plus (7176.KU) likely flat vs yesterday's close at MYR0.295 (unchanged), says dealer, following buy out offer from major shareholder London Biscuit (7126.KU) for remaining shares in TPC. London Biscuit says in stock exchange filing it is making offer at MYR0.30/share for remaining 54.4 million shares (or 68%) of TPC it doesn't own, values entire offer at MYR16.3 million to be satisfied in cash. Adds, intends to keep the listing status of TPC after exercise. Dealer says premium of MYR0.005 over market "not attractive"; "TPC's share price has been hovering around 30 sen for about 2 months... this offer puts a price floor of sorts, but it will not excite investors."


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DJ MARKET TALK: KLCI Down 0.9% Midday; 1329 Support Eyed
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0446 GMT [Dow Jones] KLCI down 0.9% at 1332.70 as broad-based profit-taking snaps market's 12-day winning streak; dealers say market taking cue from weaker U.S., regional markets. "After moving up without any stop for over 2 weeks, the market just ran out of steam. There were no positive catalysts externally and locally either," dealer says. Tips index to test 1329 support (April 2 low) in near-term. Volume at 493 million, in line with recent daily average; decliners beat gainers 3 to 1. Blue chips mostly lower, with CIMB (1023.KU) down 2.6% at MYR14.26, Tenaga (5347.KU) down 0.6% at MYR8.45, Maxis (6012.KU) down 0.8% at MYR5.28; Sunway City (6289.KU) bucked the trend, +2.2% at MYR3.78 on plans to set up biggest REIT in Malaysia.


DJ MARKET TALK: AmResearch Ups Hong Leong Bank Target To MYR9.70
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0359 GMT [Dow Jones] STOCK CALL: AmResearch raises Hong Leong Bank (5819.KU) target to MYR9.70 from MYR8.90 pegged to fair P/BV of 2X, based on revised ROE of 16.1% FY10F for the enlarged group, assuming the takeover of EON Capital (5266.KU) goes through. Notes, apart from existing all-cash offer of MYR7.30/EON Capital share, HLBB may also alternatively offer 85% cash (or MYR6.20 cash) and MYR1.10 in the form of new 0.12 HLBB shares valued at current market price of MYR8.90/share as requested by EON Capital's board. "The takeover would still be value enhancing and positive for HLBB as it reduces the burden of a larger rights issue later, which at the same time, serves as a goodwill gesture to selected major shareholders of EON Cap," says AmResearch. Keeps at Buy. Stock last down 0.6% at MYR8.83.

DJ MARKET TALK: HwangDBS Ups Sunway City To Buy; MYR4.70 Target
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0322 GMT [Dow Jones] STOCK CALL: HwangDBS Vickers Research raises Sunway City (6289.KU) to Buy from Hold, with higher target price of MYR4.70 vs MYR3.10 previously; this after Sunway City unveiled plans to inject 8 properties into REIT. House estimates REIT assets at MYR3.5 billion, with average 7% yield; says sale of assets to REIT may generate proceeds of MYR560 million, which could be redeployed for landbank acquisitions, new property investments. "We do not discount the possibility of special dividends to reward shareholders." Sunway City last +2.7% at MYR3.80.


DJ MARKET TALK: Charts Tip Halex As Short-Term Buy - Maybank
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0239 GMT [Dow Jones] STOCK CALL: Maybank Research rates agriculture chemical product maker Halex (5151.KU) as Short-Term Buy based on charts. "Halex is in a fledgling uptrend, confirmed by the positive crossovers on its technical indicators and potential Golden Cross on the 19- and 50-day moving averages," says chartist Lee Cheng Hooi; thinks Halex has great potential to reach resistance and target levels of MYR0.76, MYR0.83 and MYR0.91, after hitting recent all-time low of MYR0.625 with firm bullish divergence signals. Tips support at MYR0.63 with stop-loss at MYR0.61. Stock last down 2.2% at MYR0.655.


DJ Malaysia End-March Palm Oil Stocks Likely Down 5%-6% -Trade
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KUALA LUMPUR (Dow Jones)--Malaysia's palm oil inventories in March may have declined 5%-6% to around 1.68 million-1.70 million metric tons despite strong growth in production, as export demand for palm oil also improved, trade participants and plantation company executives said Thursday.

Crude palm oil futures have fallen 3.2% since March 1 under the weight of rising production. Plantation company executives said March crude palm oil output rose 7%-16% from the previous month.

However, end-March inventory numbers will likely decline because production may not be high enough to meet consumption, a senior trading executive based in Kuala Lumpur said.

The Malaysian Palm Oil Board is due to report output, exports and palm stocks data on Monday. CPO production was estimated at 1.16 million tons in February, while palm oil inventories at end-February were at 1.78 million tons, the MPOB said.

Export estimates by two cargo surveyors showed rising exports for March. Intertek Agri Services said shipments rose 12.1% to 1.35 million tons, while SGS (Malaysia) Bhd. said exports were up 7.7%, also at 1.35 million tons.

Analysts said March output rose significant on month because February was a shorter month and harvesting activities had spilt over to March, but growth reported by company executives came in a wide range from 7%-16%.

"Output at our palm estates has shown a single-digit increase (in March)," Lee Oi Hian, chief executive at Malaysia-based listed plantation company Kuala Lumpur Kepong Bhd. (2445.KU) said.

CPO production is likely to improve further in April, but the rise won't be "too much, as yields would be affected by the El Nino-induced dry spell in the second half of 2009," a Malaysia-based planter said. A prolonged dry spell lasting two successive months normally affects future yields.

Some trading executives put palm oil imports from Indonesia between 70,000 and 80,000 tons. Shipments from the world's largest palm oil-producing nation have likely risen due to a rush to ship out the oil to avoid a higher export tax effective in April.

An official at Indonesia's Ministry of Trade said last month that it would raise the palm oil export tax to 4.5% this month from 3%.

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DJ MARKET TALK: KLCI May Fall After 12-Day Rise; 1339-1354 Tipped
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0021 GMT [Dow Jones] KLCI may fall, with weaker performance by U.S. stocks overnight, likely on profit-taking. "After having closed in positive territory for 12 consecutive sessions, it's hard to see the market going up any further without first taking a breather, especially given the lack of new bullish developments at the moment," dealer says; tips blue chips like Tenaga (5347.KU), which rose strongly in recent days, to succumb to profit-taking. KLCI ended +0.1% at 1345.09 yesterday. TA Research pegs immediate support at 1339, with resistance at 1354; notes that "market conditions are becoming increasingly overbought."

DJ MARKET TALK: Dayang May Rise To MYR2.18 On MYR400M Job
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0002 GMT [Dow Jones] Dayang Enterprise (5141.KU) may rise to test MYR2.18 (recent high) after clinching MYR400 million, 5-year contract from Sarawak Shell Bhd; contract, which includes option for additional 1 year, is for provision of topside maintenance services; oil & gas support services provider says job expected to contribute positively to earnings for 2010-2015 period. "Dayang has been doing work for Sarawak Shell, so, this latest job award comes as no surprise. Nevertheless, it's a sizeable contract and should have a positive impact on Dayang's shares," dealer says. Analysts say latest contract boosts Dayang's orderbook by some 80% as company previously had about MYR500 million worth of jobs on hand. Dayang ends +0.5% at MYR2.10 yesterday. (

DJ MARKET TALK: Sunway City May Rise; Plans To Set Up REIT
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0045 GMT [Dow Jones] Sunway City (4308.KU) may rise to test Tuesday's high of MYR3.74 after unveiling plans to set-up REIT for eight of its properties; company says it will sell three hotels, two shopping malls, two office towers and one hypermarket, to the REIT at a price to be determined later; Sunway City will receive cash or units in the REIT, or both. "Certainly, this is a good move by Sunway to unlock the value of its properties. But until the pricing details of the deal are released, the shares may have limited upside," dealer says. Sunway City ended 0.3% lower at MYR3.70 yesterday.
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DJ MARKET TALK: KLCI May Fall, Snapping 11-Day Winning Streak
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0043 GMT [Dow Jones] KLCI may fall amid absence of fresh leads, bringing an end to a winning streak that lasted 11 days, longest in 16 years. KLCI ended +0.2% at 1344.37 yesterday. "We need some bullish developments to sustain the market's run-up, but newsflow has been rather thin this week. Investors may decide to take some profit at this point," dealer says; pegs immediate support at 1338, with resistance at 1350. Oil and gas-related stocks may continue to be in focus amid strong crude oil prices. "Bullish breakouts on oil and gas stocks such as Dialog (7277.KU) and Scomi Group (7158.KU) should accelerate further gains," TA Research says.

DJ MARKET TALK: USD/MYR Lower; Strong Support At 3.1950 - Dealer
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0035 GMT [Dow Jones] USD/MYR lower at 3.2040 vs 3.2100 late yesterday, extending recent downtrend to hit lowest level since May 2008 amid positive outlook for local economy, expectations of rising interest rates, improved risk appetite. But dealers say pair appears poised for rebound; "the pair has been moving downwards almost without stopping and is starting to look overdone. We expect strong support at the 3.1950 level, which should be a bottom for now," one says. Pegs resistance at 3.2200.

DJ MARKET TALK: DRB-Hicom May Rise To MYR1.25 On Potenza Pact
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0024 GMT [Dow Jones] DRB-Hicom (1619.KU) may rise to MYR1.25 (yesterday's high) after signing MOU with UK-based sports car maker Potenza for possible collaboration; DRB-Hicom says both parties will carry out feasilibility study on granting DRB-Hicom exclusive rights to manufacture, distribute Potenza cars for Asia-Pacific markets; collaboration may also include DRB-Hicom being made a development partner on new car models. "This will be a boost to DRB's reputation, but the immediate impact on DRB's bottomline will be rather limited as sports cars are a rather niche market. The market is still waiting for news on Volkswagen," dealer says, referring to recent market speculation Volkswagen, which plans to set up assembly operations in Malaysia to serve regional market, may select DRB-Hicom as a partner. Stock ends 3.2% lower at MYR1.20 yesterday


DJ MARKET TALK: Iris May Rise; Unit Awarded MYR115M LRT Contract
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0009 GMT [Dow Jones] Iris Corp. (0010.KU) may rise to test MYR0.18 (January 18 high), then MYR0.225 (1-year high) vs yesterday's close at MYR0.15 (down 3.2%) says dealer; this after company says unit Iris Information Technology Systems awarded MYR115.2 million contract by state-owned Syarikat Prasarana Negara to design, make, install automatic fare collection system for Prasarana's light rail transit (LRT) Kelana Jaya, Ampang lines in central Klang Valley. Adds, letter of award appoints Indra-Iris AFC Consortium as contractor for project, works to be completed within 15 months. Dealer says contract to raise Iris' top line, while generous margins will likely "significantly boost" its bottom line for 2010, 2011; "this one single contract is equivalent to a third of the company's entire 2009 revenue," dealer says. Iris posted 4Q net profit of MYR3.1 million on revenue of MYR132.5 million.


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DJ MARKET TALK: Maybank Raises Kinsteel To Buy; Ups Target 19.4%
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0228 GMT [Dow Jones] STOCK CALL: Maybank upgrades Kinsteel (5060.KU) to Buy from Hold, raises target price to MYR1.23 from MYR1.03 after raising FY10 EPS forecast by 13% and on higher target P/E of 8X 2011 earnings vs previous 6X. Says has turned positive following margin expansion in 1H FY10, with April-May billets sold forward at $550/ton vs inventory procured at $110/ton; analyst Lee Yen Ling says with sufficient iron ore inventory to last 3 months, company yet to commit to 2Q FY10 iron ore contracts, seeking more favorable pricing from domestic reserves. "We think the shares offer a better risk-reward ratio now, given higher steel prices, positive global steel fundamentals, and low foreign shareholding (less than 10%)," Lee says. Kinsteel +1.9% at MYR1.05



DJ MARKET TALK: Tenaga +3.8% On Better Power Demand Outlook
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0407 GMT [Dow Jones] Tenaga Nasional (5347.KU) +3.8% at MYR8.41, may test psychological MYR8.50 later, on better power demand outlook, says dealer with local brokerage. "The improved economic conditions have led to higher demand for power and that will translate to higher earnings," says dealer. AmResearch's analyst Alex Goh, who has Buy call, MYR10.00 target, says Tenaga's valuations are "highly attractive" at 2010 forecast P/E of 11X vs 5-year average of 14X. Cites rising power demand (+5% in FY10 vs +4% earlier), strengthening MYR, which reduces fuel, interest costs, improving economies of scale on declining power reserve margin and revival of foreign interest (shareholding which has fallen to 8.6% from 28.4% in May 2007) as catalysts that will fuel share prices.


DJ MARKET TALK: KLCI +0.2% Midday; Oil & Gas Stocks Lead
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0448 GMT [Dow Jones] KLCI +0.2% at 1344.56 midday, led by oil & gas-related stocks, select index heavyweights; "The external environment has been positive and domestically, newsflow has been generally favorable as well. There is room for further upside, at least, in the near-term," dealer says. Benchmark index tipped to rise to 1354 resistance in near-term, with support at 1338. OSK Research technical analyst Shin Kao Jack says market "far from being overbought". "The trend is obviously up and we are maintaining our bullish bias view," he adds. Among gainers, Tenaga (5347.KU) +3.5% at MYR8.38 on bullish power demand outlook, Petra Perdana (7108.KU) +10% at MYR1.76 after CIMB Research raised target price to MYR2.00; oil industry support services stocks among most active, with Kencana (5122.KU) +2.5% at MYR1.76, Dialog (7277.KU) +2.7% at MYR1.15. Among decliners, CIMB (1023.KU) down 0.4% at MYR14.68.



DJ MARKET TALK: Affin Keeps UMW As Add, Ups Target To MYR7.00
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0531 GMT [Dow Jones] STOCK CALL: Affin Research keeps UMW Holdings (4588.KU) as Add, ups target to MYR7.00 from MYR6.40 earlier; this, after according a higher P/E multiple for UMW's oil and assets (from 10X to 15X P/E). Analyst Chong Lee Len says key re-rating catalysts for stock include product pipeline visibility for 51%-owned UMW Toyota Motor Sdn Bhd, potential listing of oil and gas unit and active capital management. The "initial overhanging fear, at least on our part, of sharp decline in domestic Toyota car sales given the massive global Toyota car recalls have been proven unfounded," says Chong; adds UMW is house's top pick in automotive sector as earnings may surprise on upside given aggressive oil and gas expansion, bright prospects and management prowess. Stock +0.2% at MYR6.34.
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DJ MARKET TALK: KLCI May Extend Winning Streak To 11 Sessions
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0030 GMT [Dow Jones] KLCI may extend its winning streak to 11 sessions; blue chips expected to lead gains after U.S. shares climbed to 18-month highs overnight. Stronger MYR amid improved risk appetite, bullish technical signals also expected to boost investor confidence, dealers say; last time benchmark index gained for 11 days straight was in August 1994. TA Research says KLCI's close above 1340 yesterday signals "a bullish breakout which should boost upside momentum toward 1354 before more significant profit-taking emerge." Support tipped at yesterday's low of 1339. KLCI ended +0.4% at 1341.75

DJ MARKET TALK: HwangDBS Raises Maybank To Buy; MYR9.00 Target
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0139 GMT [Dow Jones] STOCK CALL: HwangDBS Vickers Research upgrades Maybank (1155.KU) to Buy from Hold, raises target price to MYR9.00 from MYR7.30; Maybank well positioned to benefit from interest rate hikes as it has one of lowest cost deposits ratio among banks, says analyst Sue Lin Lim. With solid domestic franchise, especially for hire-purchase and mortgages, alongside improved prospects in Indonesia, where no further provisions expected for BII (BNII.JK), Maybank's loans growth expected at 12-15% over FY10-12, above industry average of 8-9%; revises up FY10-12 earnings forecast by 1-8%. "Maybank remains an attractive laggard big cap," Lim says; Notes shares trading at 1.9X 2010 book value vs 2.2X for rival CIMB (1023.KU).


DJ MARKET TALK: OSK Research Starts Salcon At Buy, MYR0.81 Target
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0124 GMT [Dow Jones] STOCK CALL: OSK Research starts Salcon (8567.KU) at Buy, with target price of 81 sen; water engineering and construction company's orderbook stood at MYR1.2 billion as at end-2009, of which MYR576 million still outstanding. "With its current tender book at MYR1.5 billion, Salcon is poised to secure jobs worth MYR300-MYR450 million this year, based on its historical success rate of 20%-30%," says analyst Vincent Lim; adds, construction and engineering division revenue to increase 35.5% in FY10. Tips orderbook to be enlarged further in FY11 as company increases presence overseas in Thailand, Vietnam, India, Sri Lanka. In wastewater business, Salcon, now has eight concessions, mainly in China; expected to secure more China concessions in next 2-3 years, Lim says. Salcon down 0.7% at 71.5 sen.



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