Wednesday 18 February 2009.

DAILY MARKET REPORT.

Tuesday Markets Closing Prices.

KLCI 898.53 down 8.66.
DJIA 7,552.60 down 297.61 or 3.79%.
Crude Oil US$34.93.
April FCPO RM1,910.
Ringgit 3.6380.


LOCAL NEWS.

Malaysia to review the 2009 GDP after the deteriorating latest economic numbers and the second stimulus package will be bigger and more comprehensive says DPM and Finance Minister Najib Razak.

Malaysia still attractive to U.S. FDI says U.S. envoy.

MITI proposes special fund for SME's.

Proton aims to make 3,500 MPV units monthly.

Feb. 1 to Feb. 15 2009 palm oil exports drop 13.4% to 494,172 tonnes.

Analysis - Malaysia produced around 17m to 18 million tonnes of CPO's in 2008. Based on annualized basis of the latest exports figure, Malaysia will have an excess production of around 5 to 6 million tonnes.


WORLD NEWS.

IMF warned world's financial system still far from healthy.

Singapore non oil domestic exports fell 34.8% in Jan. 2009 after 20.8% decline in Dec. 2008.

U.S. carmaker GM and Chrysler seek up to US$35 billion fresh aid and plan 50,000 job cuts.

U.S. stocks sink to November low on depression fear as the new stimulus package won't be a quick fix after U.S. President Obama signed the US$787 billion bill into law Tuesday.


COMPANY RESULTS.

SHELL REFINING (FOM) BHD, RM8.70, unaudited 4Q 2008 net loss at RM523.1m on RM2.49b revenue. Net loss per share at RM1.74 and proposed dividend of 30 sen. Net assets per share at RM6.40. FYE 2008 revenue at RM13.08b, net loss at RM330.01m. net loss per shares at RM1.10 and dividend of 50 sen.

Stock Recommendation - SELL. Fair value at RM7.10 based on FY 2009 EPS of 59 sen at PER of 12X and 30 sen dividend. Keys assumption :-

- Sales of petroleum products at 41 million barrels.
- Average selling price of USD60.00.
- Average crude oil price of US$55.00.
- Average refining margin of US$5.00 or RM18.00.
- Exchange rate at RM3.60 to 1 USD.
- Net Profit margin of 2%.


BHIC Bhd, RM2.69, unaudited 4Q 2009 revenue RM169.3m, net profit RM14.5m, net EPS 6.02 sen and proposed dividend 5.50 sen. FY 2008 revenue RM115.1m, net profit RM116.9m, net EPS 46.33 sen and DPS 5.50 sen. Net assets per share at RM1.29.

Stock Recommendation - HOLD.


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