Tuesday 24 February 2009.

DAILY MARKET REPORT.

Monday Markets Closing Prices.

KLCI 887.83 down 1.88.
DJIA 7,114.78 down 250.89 or 3.41%.
Crude Oil US$38.23.
May FCPO RM1,880.
Ringgit 3.6530.

LOCAL NEWS.

The price of sugar stay at RM1.45 per kilo says Shahrir Samad.

Can One Bhd , RM0.865, to pay RM241m or RM1.65 for 32.9% of Kian Joo Bhd, RM1.30.

NTPM Hldgs Bhd, RM0.49, proposed 4 for 5 bonus issue.


WORLD NEWS.

Stocks in the U.S. retreat , sending indexes to their lowest close since 1997 on bankings concern and dividend cuts.

Analysis - Based on dividends and earnings growth models, the U.S. stock markets are still overpriced. Fundamental fair value between 4000 to 5000 level. Technical support seen at 6000 level on the DJIA.


CORPORATE RESULTS.

BCHB Hldgs Bhd, RM6.45, Unaudited 4Q 2008.

Net profit down 34% on M&A charges to RM318.6 million.
Revenue down to RM1.88 billion.
Net EPS at 9.19 sen.
Dividend of 25 sen.
Net assets per share RM4.84.

FY 2008 revenue RM7.74b.
Net profit down to RM1.95b.
Net EPS 57.82 sen.
Dividend 25 sen.

ROE 12.3%.
Total loans RM117.3b.
Net NPL RM2.73b or 2.29%.
Loan loss coverage 88.1%.
Cost to income ratio 53.2%.
CCR 10.9%.
RWCR 13.91%.
Cash RM24,2b.
Debt RM9.38b.

Stock Recommendation for BCHB Bhd - SELL on worsening global recession and a possible depression and rising bad loans outlook. FAIR VALUE at RM4.84 based on 1X net book value.


STOCK MARKET OUTLOOK.

SELL, as the "mini budget" and the upcoming UMNO election and high expectation on the new PM are the only events holding the stock market at the moment.

Fundamental Outlook - CI fair value at between 500 to 600 level. 97/98 lowest level at 262.

Technical Outlook - CI will test the 801 level.


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



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