Weekly Summary

Weekly Summary: "

FBM KLCI Monthly Chart

Another up month. Monthly RSI and Stochastic indicates that the market can still go up as it is still not yet overbought.

FBM KLCI Weekly Chart

However, looking at the weekly chart, I see a possible break of uptrend line! For me, this means that it is not a time to buy. No solid sell signal yet. Correction still in progress. For the uptrend to continue, KLCI must consolidate between 1220 - 1250.

For the rest of the sectors, I see weakness but am not alarmed yet.

Malaysia	Monthly	Weekly	Daily	Note
FBM KLCI	Up	Up	Neutral (-)	R=1.3k, S=1.2k. Correction
Finance	Up	Up	Neutral (-)	R=11k, S=9.5k. Correction
Construction	Up	Up	Neutral (-)	R=250, S=220
Plantation	Up	Up	Neutral (-)	R=6.15k, S=5.8k
Property	Up	Up	Neutral (-)	R=820, S=760

"

CSC Steel - by OSK

CSC Steel - by OSK: "

3Q profit likely to exceed estimates. We had expected CSC Steel to make a strong comeback in the upcoming 3Q results and were bullish in our forecasts (refer to Figure 1), but we suspect its actual performance may surpass our numbers. The escalating steel prices, particularly flat products, from April 2009 up to recently (refer to Figure 2) fanned our optimism on its immediate quarterly financial performance. As usual, the lag impact of lower average selling prices of the main raw material, Hot Rolled Coil (HRC), compared to the rising selling price of its finished goods, including Cold Rolled Coil (CRC), Galvanized Iron (GI) and Pre-Painted GI (PPGI), may give rise to a mismatch of higher revenue and lower production costs, thus widening the profit.

4Q numbers to hinge on China steel price recovery. While we are excited over the firmer price trend of the flat steel products (domestic), the sharp pullback in China’s local steel prices since August 2009 had to certain extent shaken market sentiment. Although the official HRC price for November 2009 delivery by Megasteel SB remains flattish m-o-m at RM2,650 per tonne, our market sources suggest that larger discounts are being offered by suppliers. Meanwhile, while December prices remain unknown, we believe this will depend on the pace of recovery in steel prices in China. We have witnessed a rebound in China since last Friday but are uncertain over its sustainability. Hence we are conservatively projecting a q-o-q profit contraction entering into 4Q.

Impact from liberalization still sketchy. CSC Steel also may see a bigger market now that local buyers of secondary flat steel products, which had previously enjoyed a 40% duty exemption on their CRC requirements, may prefer to buy from local producers as imported CRC was taxed at 25% from Aug 1, ‘09. The higher volume also means improved efficiency and thus, cost saving for the company. Nonetheless, as we suspect that Megasteel would be a major beneficiary considering that CSC Steel may need to source most of its HRC requirements locally although it is still negotiating with the Government. In the interim, we are not particularly concerned about the risk of an influx of imported steel after the implementation of the Asean Free Trade Agreement (AFTA) in 2010 as we believe the Government may introduce other forms of non-tariff barriers to protect local producers.

"

FBM KLCI Will Bounds Up Today

FBM KLCI Will Bounds Up Today: "






















Base on the chart FBM KLCI will likely to bounds up today to end Oct with some good record. For me this is a rest point to pull out your share if your investment is short term, likely Nov will see FBM KLCI drop below 1,230 before windows dressing on Dec 2009.

"

FBM-KLCI - A Bit Bearish. Waiting for DJIA Indicators ?

FBM-KLCI - A Bit Bearish. Waiting for DJIA Indicators ?: "

FBM-KLCI - Breaks it Major Supporting Lines. With the major supporting lines being breaks, it is quite bearish right now for the whole sentiment. Yesterday prices still look bit stable although we have some small selling activities in the morning session. A technical rebound might be just round the corner.

But if we examine the share market movement especially the FBM-KLCI, most of the time they were traded accordingly to the Dow Jones Industrial Average movement.

Right now the DJIA play an important role to determine whether our share market still have more spaces to hang on at the current level. A break of below 1,200 points will confirm that the current trend has turn to bearish sign. However at current level and with most of the indicators turning south, it is quite important to stay out or to reduce our exposure in order to safe guard our investment.

"

Kurnia Asia posts RM32.2m net profit in 3Q

Kurnia Asia posts RM32.2m net profit in 3Q: "If tomorrow price is right, I might swing trade Kurnia Asia, pls fasten your seat belt.

Written by Joseph Chin
Thursday, 29 October 2009 19:32

KUALA LUMPUR: KURNIA ASIA BHD [] posted net profit of RM32.25 million in the third quarter ended Sept 30 compared with a net loss of RM12.11 million a year ago due to a turnaround in the investment portfolio and improved underwriting performance.

The insurer said on Thursday, Oct 29 that revenue declined 16.2% to RM254.96 million from RM304.49 million. Earnings per share were 2.16 sen compared with loss per share of 0.81 sen. However, the third quarter earnings were below the RM42.65 million in the previous quarter ended June 30, 2009.

Executive chairman Tan Sri Kua Kian Kooi said the operating environment was increasingly competitive but the group managed to record positive underwriting performance for five consecutive quarters.

He said the internal on-going transformation and revitalisation programme had resulted in an improvement in underwriting results on-year.

The group recorded net investment and other income of RM34.02 million for the period under review, compared to net investment loss of RM7.988 million last year.

The improvement was mainly due to the recovery of equity market that allowed some write-back of mark-to-market losses provided previously.

On the underwriting end, the group's gross premium declined year-on-year by 18.1% to RM231.31 million from RM282.55 million due to its more stringent risk selection practice.

Despite the drop in gross premium, the group's underwriting surplus improved 38.0% to RM3.68 million for the period ended Sept 30, 2009 from the RM2.67 million a year ago.

'Besides the underwriting surplus and positive net investment result, the group recorded a reduction in its management expenses of RM10.87 million from Sept 30, 2008 and RM22.8 million from last quarter,' he said.

"

HPI- awaiting bonus issue

HPI- awaiting bonus issue: "HPI has just announced its results for QE31/8/2009 (its 1Q2010). Compared to the previous corresponding quarter, its net profit increased 42% despite a 10%-drop in turnover. The increased net profit was attributable to the contribution of subsidiary at Perak and the paper mill company. Compared to the immediate preceding quarter, its net profit dropped by 20% despite a 15%-increase in turnover. The decline in net profit was due to the higher raw material prices in corrugator companies during the reporting quarter.



HPI (closed at RM1.64 at the end of the morning session) is now trading at a trailing PE of 3.3 times (based on last 4 quarters' EPS totaling 49 sen). At this multiple, HPI is still very attractive.

Technically speaking, HPI is poised to test its recent August high of RM1.84. The share price seems to be trapped in an expanding triangle in the past 3 weeks. An upside breakout of the triangle (at RM1.80) as well as the recent high could set the stage for the next upleg for this stock. This could coincide with the entitlement for the 1-for-4 Bonus Issue which was approved by shareholders in an EGM held on Oct 28.


Chart: HPI's daily chart as at Oct 29, 2009_4.15pm (Source: Quickcharts)

Based on satisfactory financial performance and upcoming bonus issue, HPI could be a trading BUY.

"

Maxis- all maxed out

Maxis- all maxed out: "Maxis Bhd ('Maxis') prospectus has posted on Bursa's website (go here). This IPO will involved the listing of 7.5 billion Maxis shares on the exchange on November 19. On Page 21 of the Prospectus, we can see the Summary of Selected Financial & Operating Data for the company (see Table 1 below). You will see that Maxis reported a Net Profit of RM1.141 billion for 6-month ended 30/6/2009. Based on this, we can expect Maxis' Net Profit for FY2009 to be about RM2.282 billion. As such, Maxis share will have an EPS of about 30.4 sen. Based on the listing price of RM5.20 per share, the IPO is priced at a PE of 17.1 times.


Table 1: Maxis' Summary of Selected Financial & Operating Data

Maxis is very similar to Digi.com Bhd ('Digi') as both are involved in mobile telecommunication services in Malaysia only. Digi has just announced its results for 9-month ended 30/9/2009 yesterday (see Table 2 below). Digi ((closed at RM21.76 at the end of the morning session) is now trading at a PE of 16.8 times (based on the annualized EPS of 129.3 sen).


Table 2: Digi's latest 8 quarterly results

Based on the above, it is fair to say that Maxis' IPO is fully priced. While many investors maybe excited about Maxis' re-quotation on the exchange, it is hard to make a case for buying the stock. Funds managers, which have little choice but to own the stock, will buy it. Should retail investors buy this stock for dividend? Assuming Maxis pays out 90% of its earning, it would be pay a dividend of 27 sen (30.4 sen x 90%). At the IPO price of RM5.20, the dividend yield is about 5.2%. I guess that the only strong point I can make for owning the stock. I would prefer Axiata to Digi or Maxis anytime.

"

Axiata Hold On 1st Support Line

Axiata Hold On 1st Support Line: "






















On 16 Oct 2009 Axiata Group Bhd says PT Excelcomindo Pratama Tbk (XL) rights issue, which will raise US$300 million, is on track as scheduled and is expected to be completed in December.
Nonetheless, its steady free cashflow generation of estimated RM1.5 billion to RM1.6 billion in FY09F-FY10F should partly meet Axiata’s debt obligation and capex requirements.

Axiata share price hits high at RM3.20 have drop to now the 1st support line at RM 2.90 but this is a vary important support level due to the 2nd level will be RM2.40. If Axiata broken 1st level RM2.90 I think panic selling may happen to drop Axiata share to RM2.40. This level is AmResearch target price.

However if Axiata can hold on at RM2.90 untill next buy up of FBM KLCI at end of the year or buy vol go up with price hold on at RM2.90 will see Axiata share price may likely to bounds back to RM3.20. But in over all Axiata upside potential is limited so the best idea to invest into Axiata to maximum profit is buy into warrant, Axiata-CC and Axiata-CD.

This two warrant have drop to lowest since issued out by CIMB and OSK and the expire date is still far. I think the warrant may move up by end of the year when market getting better or windows dressing.

"

DiGi posts 3Q net profit of RM244m

DiGi posts 3Q net profit of RM244m: "

Written by Joseph Chin
Wednesday, 28 October 2009 13:00

KUALA LUMPUR: DIGI.COM BHD [] posted net profit of RM244.08 million for the third quarter ended Sept 30, 2009, a decline from the RM269.94 million a year ago.

The telco said on Wednesday, Oct 28 that revenue was RM1.238 billion versus RM1.222 billion a year ago. Earnings per share were 31.4 sen versus 34.7 sen.
It declared a single-tier exempt dividend 75 sen a share.

It also increased its dividend commitment to a minimum 80% pay-out of its net income from 2010 in view of optimistic long-term financial prospects.

DiGi chief executive Johan Dennelind said: 'DiGi is still charting growth with a strong operational cash flow and balance sheet. Returning excess cash is part of our effort to provide sustainable long term yields to our shareholders. Over the years, we have built a solid track record and remain committed to continue creating superior value for our shareholders.'

On a quarter-on-quarter basis, revenue grew 3% to RM1.2 billion attributed to well-received segment offerings, in addition to the steady increase in the subscriber base over the current quarter.

Profit before tax (PBT) was RM333.2 million compared to RM323.9 million in the immediate preceding quarter while profit after tax (PAT) rose by 4% to RM244.1 million from RM234.5 million recorded in the second quarter this year.

Dennelind said that DiGi is determined to deliver better results, 'We are seeing positive indicators signaling an upward momentum from the relatively flat start this year. We have pushed the envelope on delivering quality services to our customers to ensure we capitalise on the progressive economic recovery.'

He also said DiGi was currently spending a significant portion of its total capital expenditure estimated at RM700 million for the year, on rolling out its 3G mobile broadband network.

'Our future growth is in Internet and we will continue to invest to bring relevant and affordable internet to the people on Malaysia's newest Turbo 3G™ (14.4Mbps 3G/HSPA) network.

'With the introduction of DiGi Internet last week, we now have a complete 3G offering that will enable us to capture additional revenue streams arising from new subscribers as well as higher data usage,' he said.

"

Market Outlook as at Oct 27, 2009

Market Outlook as at Oct 27, 2009: "The market is undergoing a corrective phase, which may see the FBMKLCI testing the 20-day SMA line support at 1243 (similar to the last 2 correction denoted as 'B' & 'C'). If this level failed, then the KLCI may test the 50-day SMA line support at 1211 (see the correction in June & July, denoted as 'A').


Chart: FBMKLCI's daily chart as at Oct 26, 2009 (Source: Quickcharts)

After seeing a few uptrend line violations among blue chips & near blue chips, I have a feeling that the market may be nearing a temporary top. However, the relatively bullish undertone in the market is such that the price of these stocks has yet to drop significantly, but has instead been moving in a sideway fashion. Some of the stocks that had violated their uptrend line are Astro, Axiata, Boustead, Unisem and WCT.

"

Broker's Call - Tue, 27 Oct 2009

Broker's Call - Tue, 27 Oct 2009: ".
– Axiata Group (AXIATA MK; RM2.92, SELL) – Uptrend channel formed since March was violated.
– Eti Tech Corporation (ETIT MK; RM0.72, SELL) – Possibly a Triple Top formation.
– Gamuda (GAM MK; RM3.29, BUY) – Keep stop tight at the 50-day SMA.
_______________________________________________________________________

Axiata Group (AXIATA MK; RM2.92) – SELL
FY10P/E: 15.6x, P/BV: 1.5x

• The uptrend channel formed since March was violated. This may trigger more downward pressure on the stock over the near term, likely towards the next support at RM2.75 and RM2.60.
• Indicators are showing bearish signs. MACD has turned negative while its RSI dipped closer to the oversold territory.
• We remain bearish until the day when the candles inch above the supportturned- resistance trend line. Any rebound towards RM3.04 resistance is therefore an opportunity to take profit. To negate this bearish tone, it must first cut above its key SMAs.

Axiata Group Berhad is a telecommunication company. The company's main activities are the establishment, maintenance, and provision of telecommunications and related services.
_____________________________________________________________________

Eti Tech Corporation (ETIT MK; RM0.72) – SELL
FY10P/E: 18.0x, P/BV: 5.7x

• Eti Tech seems like forming a Triple Top formation and this pattern is usually viewed as a reversal signal. However, we need another black candle to confirm this bearish tone.
• Both MACD and RSI show bearish divergences, suggesting that buying momentum has faded. The still dropping RSI indicator also points to more downside ahead.
• If the candle fails to move above RM0.73, we think the next downside target is at RM0.70 and RM0.65. Even if there is a rebound, gains would likely be capped by the SMAs at RM0.78-RM0.79.

ETI Tech Corporation Bhd researches, designs, and markets batteries.
_____________________________________________________________________

Gamuda (GAM MK; RM3.29) – BUY
FY10P/E: 19.8x, P/BV: 2.1x

• Despite our earlier sell-on-weakness call on 1st Oct, Gamuda continues to hold firm within its uptrend channel formed.
• So long as the candles stay above its 50-day SMA at RM3.20, there is still a chance for it to swing higher. However, traders must keep stop tight as a break down would change our positive stance on the stock. Breaking below its key SMAs would be bearish and traders should go short instead.
• We believe Gamuda may gyrate sideways over the next few days for consolidation. MACD is turning flat while its RSI has also retraced from its earlier peak.

Gamuda Berhad is an investment holding and civil engineering construction company. Through its subsidiaries, the company provides earthwork construction, manufactures and supplies road surfacing materials, and operates quarry and road laying projects. Gamuda also has operation in hiring and rental of plant and machinery, develops properties, and manufactures and sells paper.

"

Broker's Call - Mon, 26 Oct 2009

Broker's Call - Mon, 26 Oct 2009: ".
– KLCI Index Futures – Below its short term support trend line
– Crude oil futures – Crucial to hold above the US$76.70 support trend line.
– CPO futures – Building a strong footing above the 50-day SMA.
– Sunway Holdings (SGW MK; RM1.44, BUY) – Likely to challenge the downtrend resistance.
– Supermax Corporation (SUCB MK; RM3.82, SELL) – A bearish engulfing pattern was formed.
– DNP Holdings (DNP MK; RM1.51, SELL) – Increasing risk of breaking below the uptrend channel.
______________________________________________________________________

Sunway Holdings (SGW MK; RM1.44) – BUY
FY10P/E: 8.1x, P/BV: 1.2x

• The stock broke out of its key SMAs on strong volume last Friday. This could be seen as a prelude to upside breakout. However, the candlestick must swing above RM1.47 resistance trend line to confirm this bullish tone.
• MACD is gaining strength and is about to turn positive while its RSI is also rising towards the upper band of the neutral zone. This improving technical landscape is supportive of our positive stance.
• Traders with higher risk appetite may start to nibble now and ride the bandwagon but a stop at RM1.36 is a must. A successful breakout would push it towards RM1.51 and RM1.58 next.

Sunway Holdings Berhad is an investment holding company. Through its subsidiaries, it has operation in constructing civil and building works and contracting in mechanical, electrical, and piling works. The Company also develops and invests properties, provides financial services, manufactures vitrified clay pipes and concrete products, and trades building materials.
_____________________________________________________________________

Supermax Corporation (SUCB MK; RM3.82) – SELL
FY10P/E: 7.6x, P/BV: 2.0x

• Supermax hit a new 52-week high of RM4.04 in the early going, but gave back its gains on late selldown to form a bearish engulfing pattern, probably signalling that the stock is near peak.
• Technical indicators also show some easing signs. MACD histogram bars are losing a bit of momentum here while its RSI has also hooked downward. If it fails to penetrate above RM4.04 over the next few days, chances are it may ease towards the RM3.70 support level.
• A break down from the RM3.70 support trend line would be bearish as it would confirm that this uptrend is over for now. Next downside target is seen at RM3.50 and RM3.20.

Supermax Corporation Berhad is an investment holding company whose subsidiaries manufacture, sell, and export various type of latex gloves around the world.
_____________________________________________________________________

DNP Holdings (DNP MK; RM1.51) – SELL
FY10P/E: N/A, P/BV: 0.7x

• DNP is facing increasing risk of breaking below the uptrend channel. Last week, selling pressure kept the bulls at bay and caused the candlesticks to tumble below the key SMAs.
• MACD histogram bars are falling at an accelerating pace while its RSI has also hooked downward. This would undermine any recovery effort. If the RM1.44 support trend line breaks, next downside target is seen at RM1.29 and RM1.17.
• Traders might want to take some profits off the table now as buying momentum dwindles. Sell somewhere near its resistance at RM1.63-RM1.68.

DNP Holdings Berhad is an investment holding company. The company, through its subsidiaries, manufactures and trades textile garments, develops and invests in properties, and trades and fabricates interior building materials. DNP Holdings also provides project management and maintains properties.

"

Budget 2010 Effect On FBM KLCI Is Over

Budget 2010 Effect On FBM KLCI Is Over: "






















Budget 2010 reviewed last Friday did not see a vary good budget. Due to the budget, FBM KLCI was supported strongly and now the element of surprise is over, will FBM KLCI drop below 1,200? For me unlikely will happen not because of Malaysia economic fundamental strong but due to FBM KLCI index can be support by only Banking sector and Plantation sector.

However I think month of Nov will drop compare to Oct. Think may turn wrong if you see US DJ index chart already showing some sign of weakening. I think it is better to be ready to next big correction.

"

ICAP- Offer U Almost 10% below Net Assets Value

ICAP- Offer U Almost 10% below Net Assets Value: "
In this young BULL market, if you thinking of buying a good undervalue stock in Bursa Malaysia,

Instead of paying existing market price to buy stock in Bursa, why not consider this one:-

ICAP, offer you an exposure to Equity in Bursa Malaysia by paying 10% less on Market Price.

NAV as at 21/10/2009 : 1.96

Icap market price: 1.80

Exp: if u interested in Parkson, market price is 5.15,
BUT you can buy it indirectly via Icap at a price cheaper than 5.15.( 10% discount) because Icap's biggest holding is Parkson.

AdSense

"

Daiman- testing its long-term downtrend line

Daiman- testing its long-term downtrend line: "Background

Daiman Development Bhd ('Daiman') is a property developer with 3 on-going projects in Kota Tinggi, Kulai & Johor Bahru Tengah, Johor. Its investment properties are Wisma Daiman & Daiman Apartment.

Recent Financial Results

Daiman's financial performance is very unexciting for the past 8 quarters. For QE30/6/2009, its net profit increased significantly by six-fold q-o-q or 59% y-o-y to RM15 million while turnover was 56% higher than the immediately preceding quarter but 14% lower than the previous corresponding quarter. The improved bottom-line was attributable to higher sales & realized forex gain.



Valuation

Daiman (closed at RM1.62 today) is now trading at trailing PE of 15 times (based on last 4 quarters' EPS of 11 sen). While this is high for unexciting property counter, the stock is trading at a Price to Book of 0.4 times only. Daiman is a cash-rich company with cash or near-cash reserves of RM278 million as at 30/6/2009. This gives the stock a cash backing of RM1.18 per share. If this is deducted from the share price, Daiman is now trading at a PE of 4 times only. However, I must caution that many investors have sunk money into this stock on the same rationale but they have yet to enjoy their just reward.

Technical Outlook

The main reason why we should be looking at this stock is because there are some signs that this stock is poised for a possible upside breakout of its very, very long-term downtrend line. The resistance for that downtrend line is at RM1.65 (see Chart 1 below).


Chart 1: Daiman's daily chart from 1992 to Oct 22, 2009(source: Tradesignum)

The stock has already broken above its downward channel at RM1.50 in July this year (see Chart 2). Since then, the stock has entered into a consolidation phase where sellers came out & disposed off their holding quite aggressive. This selling seems to have been exhausted. Today, we might have witnessed the continuation of the prior short-term uptrend. For this stock to go higher, it must break above the long-term downtrend line at RM1.65. This level was tested today.


Chart 2: Daiman's weekly chart as at Oct 23, 2009_10.00am (Source: Quickcharts)


Chart 3: Daiman's 60-min chart as at Oct 23, 2009_11.15am (Source: Quickcharts)

Conclusion

Daiman maybe on the verge of an upside breakout of its long-term downtrend line. It is a fairly attractive property stock, with relatively thin trading volume. It is worth tracking closely for a potential sizeable return.

"

Axiata & TM- being sold to make room for Maxis

Axiata & TM- being sold to make room for Maxis: "The re-listing of Maxis on our exchange has caused fund managers to re-balance their portfolio by reducing their holding in existing telephony stocks & positioning to buy into Maxis- either before its listing or shortly thereafter. The losers in this exercise appear to be Axiata & TM.

From Chart 1, we can see that Axiata broke below its medium-term uptrend line support at RM3.10 yesterday. Its immediate horizontal support of RM3.00 is being tested now. If the stock does not recover above its medium-term uptrend line soon, it is likely to trade sideway or drift lower.


Chart 1: Axiata's daily chart as at Oct 22, 2009(source: Tradesignum)

TM may have broken below its medium-term uptrend line support at RM3.10 in mid-September. TM has been trading sideway, between RM3.05 & RM3.15 for the past few weeks. I have presented below 2 charts of TM, either unadjusted or adjusted for the capital repayment of RM0.98 in May.


Chart 2: TM's daily chart as at Oct 22, 2009 (source: Tradesignum)


Chart 3: TM's daily chart as at Oct 22, 2009- adjusted for Capital repayment of RM0.98 in May 2009 (source: Tradesignum)

I do not have any comment on the Maxis re-listing at this moment. However, I think that the current selling of Axiata may present a good buying opportunity for the stock. A good entry level is at the 100-day SMA of RM2.85-90, notwithstanding my earlier take on the technical outlook for this stock.

"

Broker's Call - Fri, 23 Oct 2009

Broker's Call - Fri, 23 Oct 2009: ".
– Malaysian Resources Corp (MRC MK; RM1.33, SELL) – Sell into strength.
– Kinsteel (KSB MK; RM1.02, BUY) – Bounced off strongly from support channel.
– IJM Corporation (IJM MK; RM4.81, SELL) – Signs of weariness.
______________________________________________________________________

Malaysian Resources Corp (MRC MK; RM1.33) – SELL
FY10P/E: 25.6x, P/BV: 1.9x

• Despite numerous attempts, the stock failed to inch past the resistance trend line, suggesting that it is still trapped in a downtrend channel. Yesterday, the candlesticks also fell below its key SMAs.
• Although it is possible that the candle may retest the RM1.42 resistance trend line, we think such effort is futile due to its easing technical landscape.
• Traders should do well selling into strength, preferably near the RM1.42 resistance. Support is seen at RM1.25 and RM1.16.

Malaysian Resources Corporation Berhad is an investment holding company. Through its subsidiaries, the company provides construction and engineering services, multimedia, property development and management, information technology services, and independent power producer. Malaysian Resources also manufactures and sells ceramic tiles and pre-stressed spun concrete piles.
_____________________________________________________________________

Kinsteel (KSB MK; RM1.02) – BUY
FY10P/E: 8.6x, P/BV: 1.2x

• Kinsteel bounced off strongly from its support trend line yesterday. We may see further re-rating on the stock as its candlestick also edged above the key SMAs.
• MACD has turned positive while RSI is also rising towards the upper band of the neutral zone. If yesterday’s high of RM1.05 is taken out in the early going, RM1.10 is the next target, followed by RM1.18 next.
• Any pullback is an opportunity to accumulate. However, always keep stop tight at RM0.935 (support trend line) as next downside targets are distanced away at RM0.875 and RM0.815.

Kinsteel Berhad is an investment holding company. The company, through its subsidiaries, manufactures and trades steel bars and related products. Kinsteel also operates in property investment.
_____________________________________________________________________

IJM Corporation (IJM MK; RM4.81) – SELL
FY10P/E: 19.8x, P/BV: 1.3x

• Previous failed attempts to move above the resistance channel shows that strong resistance lies ahead. Further gains are likely to be capped at RM5.04.
• Technical indicators are showing some signs of weariness. MACD is poised for a negative crossover while its RSI has also hooked downward.
• Although we are cautiously bullish about its medium-term outlook, we see opportunities to take some profits now and buy back later. Value should emerge closer to the RM4.45 support.

IJM Corporation Berhad is an investment holding company that provides construction services. The company, through its subsidiaries, operates in property development, provides quarrying services, manufactures and sells premix products, cultivates oil palm, and provides education services.

"

FBM KLCI And DJI calling for a correction

FBM KLCI And DJI calling for a correction: "






















Base on the chart both FBM KLCI and DJI is about to drop to nest support line. I think likely the drop of correction will be happen in next week or begin of Nov.

Base on 2007 which no 'Black October' happen the next month Nov will drop before bounds up to year end, I think likely will happen in this year 2009.

"