Monday 23 February 2009.

DAILY MARKET REPORT.

Friday Markets Closing Prices.


KLCI 889.71 down 9.88.
DJIA 7,365.67 down 100.28 or 1.34%.
Crude Oil US$ 40.03.
May FCPO RM1,835.
Ringgit 3.6750.


LOCAL NEWS.

KLIA@Labu deal is off says DPM Najib.

MITI proposes RM5,00o incentive in mini budget to spur auto industry. The RM5,000 incentive can be in the form of reduction in excise duties and sales tax or other mechanism Muhyiddin of MITI said.

January car sales down 17.5%.

Palm oil export from Feb 1 to 20, 2009 at 794,286, up some 56,ooo tonnes or 7.6% from Jan. 1 to 20, 2009 according to a survey.

Puncak Niaga Bhd, SPLASH and ABASS reject Selangor state government offer for their water assets.

BNM forex reserve as at 13 Feb. 2009 up slightly to RM317.7 billion or US$91.6 billion from US91.3 billion.

Inflation rate for Dec. 2008 down 3.9% from 4.0% in Nov. 2008.

Analysis - On paper the inflation rate may seem to be easing but in actual fact the cost of living for the ordinary 'rakyat' is still high. More can be done for them and hopefully the upcoming "mini budget" will tackle the issue head on such as giving more scholarships in the education area, more free healthcare benefits, toll free for all the highways, lower fuel pump prices, lower charges for the basic ammenities such as water, electricity, telephone, lower loans rate etc etc.

The government should not at all of this as a subsididies or waste of money but as the fastest ways to generate economic growth by putting money directly in 'rakyat' pocket besides formulating long term strategies to achieve the sustainable growth that provide employment for the citizens of the country and doesn't rely on foreign workers.


WORLD NEWS.

U.S. President Obama economic adviser and former Fed Chairman Paul Volcker says U.S. economy may suffer for a "long time".

Asian nation to form US$120 billion reserve pool to defend their currencies.


CORPORATE RESULTS.

IOI CORP BHD, RM3.72, unaudited 2Q FY June 30, 2009.

Net profit down 71% to RM185.5 million, net EPS down at 2.85 sen and proposed dividend of 3 sen.
1H 2009 net profit down to RM459 million and net EPS 7.75 sen due to realised forex losses of RM120.9 million and unrealised forex losses of RM249.6 million.

Stock Recommendation - SELL IOI Corp. Bhd based on a very steep valuation as the 1H 2009 average selling price for the CPO still above RM3,000 as a results of forward selling, whereas now the CPO prices is at RM1,800 level.


By:-
Kamel Bin Mohd Yusoh.
Kenanga Investment Bank Bhd.
013-6306544 or 03-21634549/50.
Feb. 23, 2009.