Thursday 26 February 2009.

DAILY MARKET REPORT.

Wednesday Markets Closing Prices.


KLCI 896.5 up 2.44.
DJIA 7,270.89 down 80.05 or 1.09%.
Crude Oil US$42.50.
May FCPO RM1,911.
Ringgit 3.6670.


LOCAL NEWS.

Globalise Islamic finance to weather economic crisis - BNM Governor Zeti Aziz.

Analysis - Time to replace the entire global financial system since the old capitalist system had failed miserably by merging the two systems. For further details please read my Stock Market Outlook for 2009.

Government decision on 7 tolled roads soon.

Analysis - Toll free roads for the entire country is a better option than increasing the toll charges to ease the 'rakyat' burden.

20,000 workers retrenched since October 2008 and more than 80,000 on temporary lay off.

Public Bank Bhd, RM9.10, SELL and TAKE PROFIT, sees reduced interest margin by 10 - 12 percent after the 150 bps cut in OPR since November 2008.

Maybank Bhd, RM5.35, SELL and TAKE PROFIT, reduces BLR to 5.55% and plan to raise capital through issuance of RM5b to RM6b of rights issue.


WORLD NEWS.

U.S. banks will get 6 monts to raise capital after the stress tests.

China economy early rebound is unlikely as recent bank data suggests that many of the loans won't immediately fuel economic growth and China trade also continued to contract.


CORPORATE RESULTS.

UMW Hldgs Bhd, RM5.45, 4Q FY31.12.2008.

Lower vehicle and equipment sales dampen earnings for the 4Q 2008.

4Q 08 net profit down to RM202.9m from RM230.7m year on year. NetEPS lower from 13.6 sen to 10.73 sen. Dividend at 12.00 sen. Net Assets at RM3.23.

FY2008 net profit up from RM679.3m to RM948.5m. EPS at 51.95 sen from 44.62 sen and dividend at 37 sen.

Stock Recommendation - SELL and TAKE PROFIT on slowdown in consumers spending.


MAHB BHD, RM2.32, U4Q FY 31.12.2008.

4Q 2008 net profit down 46% on higher costs.

4Q08 net profit down from RM106.3m to RM57.5m year on year.
Net EPS down from 9.67 sen to 5.24 sen.
Proposed dividend of 4 sen.
Net assets per share RM2.89.

FY2008 net profit up from RM289.2m to RM305.8m year on year.
Net EPS up from 26.3 sen to 27.8 sen.
DPS 17 sen.

Stock Recommendation - SELL and TAKE PROFIT on slowdown in world travel as the economy contract.


By:-
Kamel bin Mohd Yusoh.
KIBB.
013-6306544.
26 Feb. 2009.