Wednesday 25 February 2009.

DAILY MARKET REPORT.

Tueasday Markets Closing Prices.

KLCI 894.07 up 6.24.
DJIA 7,350.94 up 236.96 or 3.32%.
Crude Oil US$39.96.
May FCPO RM1,871.
Ringgit 3.6600.

LOCAL NEWS.

PM Abdullah Badawi launched Malaysia Anti Coprruption Commision yesterday.

DPM Najib says second stimulus plan will be bigger and more comprehensive to have an impact on the domestic market.

Bank Negara Malaysia cuts Overnight Policy Rate by 50 bps to 2.o% fro 2.5% and statutory reserves requirements to 1% from 2%.

Analysis - BNM need to make a further cut on OPR and SRR to close to zero at 0.25% even though this move will hurt banks net interest income and margin. The deepening global recession and depression has raised the risk of recession on Malaysian economy in 2009 onward. This is to mitigate more bad loans problem as expected in the future.

Toll charges for both directions on IJM Bhd, RM3.56, owned Sungei Besi Besraya had been abolished, the second time after the recently abolished toll for the KL bound traffic fro PJ on IJM's North Pantai Expressway.

Analysis - Federal government should abolish all the existing toll roads in the country. One way to stimulate growth and together with further reduction of fuel pump prices, this can be a very potent combination to promote domestic tourism.


WORLD NEWS.

Fed Chairman testimony suggested the U.S. recession will prolonged further.

Japan's export plummet a record 46%, signalling a recession likely to deepen.

CORPORATE RESULTS.

TM Bhd, RM3.34, Audited 4Q FY 31.12.2008.

4Q revenue up from RM2.1b to RM2.49b year on year.
Net profit down from RM642m to RM184m.
Net EPS down from 17.2 sen to 4.80 sen.
Proposed dividend 14.25.
Net assets per shareRM2.97.

FY2008 revenue up from RM8.295b to RM8.674b year on year.
Net profit down from RM2.63b to RM901.1m.
Net EPS down from 74.4 sen to 23.0 sen.
DPS at RM26.25.

TM Bhd also proposed a capital repayment to shareholders of RM3,505.8 million or almost RM1.00 per share.

Stock Recommendation for TM Bhd - BUY but TM are better off to use RM5.0b cash from TMI and RM2.09b cash in hand to pay off all their existing debt of RM7.0b of which RM3.8b is a US dollar loans and for the RM10.0 capex requirement of the high speed broadband project.

Petronas Dagangan Bhd, RM7.45, U3Q FY31.3.2009.

3Q revenue down from RM5.7b to RM5.56b year on year.
Net profit down from RM193.9m to RM43.6m.
Net EPS down from 19.4 sen to 4.30 sen.
Net assets per share 4.02.
No dividend.

9M 2009 revenue up from RM16.25b to RM19.99b yer on year.
Net Profit down from RM500.2m to RM410.1m.
Net EPS down from 49.9 sen from 40.9 sen.
No dividend.

Stock Recommendation - SELL and TAKE PROFIT.


MISC BHD, RM8.55, U3Q FY 31.3.2009.

3Q09 revenue up from RM3.319b to RM3.679b year on year.
Net profit down from RM480.6b to RM280m.
Net EPS down from 11.86 sen to 6.71 sen.
Net assets per share RM5.42.
No dividend.

9M 2009 revenue up from RM9.4b to RM11.78b year on year.
Net profit down from RM1.72b to RM1.313b.
Net EPS down from 44.51 sen to RM32.87 sen.
DPS 15.00 sen.

Stock Recommendation - SELL and TAKE PROFIT. MISC profit guidance expecting lower earnings going forward.


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