Sunway (BUY)
The sun shines in Medini
§ Sunway announced a JV with Khazanah to acquire 2 parcels of leased land measuring 691 acres in Medini Iskandar (see Figure #1) worth RM745.3m (RM25.73/sq ft) with an estimated GDV of RM12bn over 10 years. The deal is expected to be concluded by May-12.
§ We are positive on this development as it will boost Sunway's total land bank by 30% to 2,798 acres, while its effective GDV will also rise by 48% to RM20.7bn.
§ We maintain our BUY call on Sunway with a TP of RM3.12.
KLCI: Holding well above 1450
§ Technical readings have turned better following yesterday 11.6 pts gain to stage a strong breakout above the downtrend line. However, given the persistent negative headlines from Europe and thin volume ahead of the year-end holidays, we expect the local bourse to remain volatile albeit with an upward bias due to the window dressing activities. Crucial support is the 50-d SMA or uptrend line near 1458 whilst resistance zones are 1487-1502.
DJIA: Crucial 11500 support levels
§ Following the breakdown of 200-d SMA (11936), mid Bollinger band (11831) and 50-d SMA (11821) supports coupled with the negative technical readings, the Dow may retest lower uptrend line and 100-d SMA supports near 11500. A violation of 11500 will push index lower towards a more solid support of lower Bollinger band at 11250. Immediate resistance levels are 11936-12284 levels.
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