Monday, 16 February 2009.

DAILY MARKET REPORT.

Friday Markets Closing Prices.

KLCI 909.84 up 15.24.
DJIA 7,850.41 down82.35 or 1.04%.
Crude Oil USD37.51.
April FCPO RM1,995.
Ringgit 3.6020.


LOCAL NEWS.

Iskandar's RM43 billion investment a big boost for Johor despite Middle East investor having some difficulty in Dubai as the property market slump.

Malaysia scored 35 out of 100 points in the open budget index for 2008 and is ranked 53rd out of 83 countries on lacked of transparency.

Selangor state government offered RM5.18 billion for 3 water assets, with Gamuda Bhd, RM3.10, 30% owned SPLASH got RM2.06 billion offer and Puncak Niaga Holdings Bhd, RM3.10, 2 water firms, 100% owned PNSB and 70% owned SYABAS got an offer of RM1.61 billion and RM1.51 billion respectively. No words on KDEB subsidiary ABASS.

Stock Recomendation - SELL and TAKE PROFIT on price rally as the offer are not inclusive of debt.

Syed Yusof Tun Syed Nasir bought 50 million or 8.2% of K&N Holdings Bhd, RM0.46, for RM20 million or 40 sen a share from the shareholder Dato Ramli Ismail.

Stock Recommendation - TRADING BUY as Syed Yusof is expected to increase his stake as K&N Kenanga is trading substantially below it's net asset value.


WORLD NEWS.

Japan economy shrinks at an annual 12.7% pace in tte 4th quarter of 2008.

Paul Krugman of Princeton University says the US$787 billion stimulus not up to scale of the recession.

President Obama adviser says the fiscal stimulus will take time.

Philadelphia Fed forecast U.S. economy will shrink 5.2% in 1Q 2009.

Meanwhile, Reuters / University of Michigan Surveys of Consumers says most (almost two third) of U.S. consumer expect the economic downturn to last up to five years.


COMPANY RESULTS.

AMMB HOLDINGS BHD, RM2.43, Unaudited 3Q FYE 31.3.2009.

Revenue for 3Q09 down to RM1.54b from RM1.616b Y-on-Y.
Net Profit up from RM241m to RM253m Y-on-Y.
Net EPS up from 8.62 sen to 9.11 sen.
Net Assets per share at RM2.73.
For YTD 9m revenue were down from RM4.5b to RM4.387b.
Net Profit were up from RM587.1m to RM692.5m.
Net EPS were up from 20.03 sen to 25.01 sen.

Stock Recommendation - SELL and TAKE PROFIT on rally on the expectation the commercial banking earnings unit will get hit with the contagion effect of slowing world economy after the recent world financial meltdown. The investment banking unit earnings were already hit badly by the crisis.


STOCK MARKET OUTLOOK.

SELL and TAKE PROFIT on market rally.

Technical Support Level - 900, 880, 860, 850.
Technical Resistance Level - 920, 936.


By:-
Kamel bin Mohd Yusoh.
Kenanga Investment Bank Bhd.
013-6306544 0r 03-21634549/50.