Thursday, 29 January 2009.

DAILY MARKET REPORT.

Wednesday Markets Closing Prices.

KLCI 879.63 up 6.94.
DJIA 8,375.45 up 200.72 or 2.46%.
Crude Oil US$42.16.
April FCPO RM1,782.
Ringgit 3.5850.

NEWS.

Japan sees Malaysia most attractive FDI destination.

BNM to issue Merdeka Savings Bond in March.

RHB Bank subsidiary of RHB Capital Bhd, Trading Buy, (RM3.68, Est. 2009 EPS 40 sen, Net Assets RM3.50, Div. Yield 4.07%, PER 9.2X) and Hong Leong Bank, Trading Buy, (RM5.25, Est. 2009 EPS 50 sen, Net Assets RM3.67, Div. Yield 4.76%, PER 10.5X) followed Maybank and CIMB to cut rates by 55 basis points from 6.5% to 5.95% following BNM moved to lower OPR by 75 basis points to 2.5%.

MMC Bhd RM1.23, BUY,(Est. 2009 EPS 18 sen, Net Assets RM1.97, Dividend Yield 4.06% , PER 6.8X) subsidiary, the Port of Tanjung Pelepas in Johor, remained as Malaysia's number one port handling 5.6 million TEUs in throughput last year.

Malaysian lost 10,000 jobs since 1 January 2009.


WORLD NEWS.

US$825 billion fiscal stimulus are ready for vote.

US government is ready to buy banks toxic assets.

Fed to buy long term treasury bond.

Comment - This has resulted in a positive markets sentiment in the US and worldwide but the short term results to the economy remain to be seen as most of the fiscal stimulus effects expected to be felt only by the end of 2010 and the bank recapitalization exercise expected to involved huge amount of government borrowing.

My suggestion, as outrageous as it may sound, equity capitalization of one dollar for every one dollar of loan, is still the best solution instead of recapitalizing the banks through borrowing by the issuing of bond or preferred stock.

United Nation report said the world will lose 51 million more jobs by the end of 2009.