Monday 23 March 2009.

DAILY MARKET REPORT.

Friday Markets Closing Prices.


KLCI 856.82 up 4.64.
DJIA 7,278.38 down 122.42 or 1.65%.
Crude Oil US$52.07.
June FCPO RM1,985.
Ringgit 3.64.


LOCAL NEWS.

MMC Corp. Bhd, RM1.47, shareholders approved the related parties assets injection, Senai Airport Terminal Services Bhd into MMC for RM1.7 billion.

Stock Recommendation - Take Profit and SELL based on SATS as a loss making entity will need at least 3 to 5 years to compensate earnings contribution from any assets disposal such as 19% of PTP etc to pay for the purchases.

Public Bank Bhd, RM7.25, is planning to raise RM5 billion in new capital.

Stock Recommendation - SELL as PBBhd is highly undercapitalized as they and the rest of the banks still based their capital structure on outdated banking system. The net tangible assets is only RM2.30 which is the fair value for the bank in this highly uncertain operating environment.

February 2009 car sales down 3% from January 2009 and down 4.8% from a year ago.

Malaysia latest forex reserves as of March 13, 2009 at RM314 billion or US$90.6 billion, down US$500 million from 27 February 2009.


WORLD NEWS.

According to ex-Premier Lee Kuan Yew, Singapore will take 2 to 3 years to recover from recession based on optimistic scenario assuming U.S. recovers next year. His pessimistic but more realistic forecast are 5 to 6 years to recover.

Australia economic growth is "virtually impossible" on Asian and worldwide recession.

ECB to lower interest rates again to counter recession.

China stimulus package to add 1.9% to GDP to around 8% according to Chinese official but the latest OECD forecast China GDP to be around 6.5% for this year.

FDIC Chairwoman said bank failures for the next 5 years will probably cost them US$65 billion.

U.S. Treasury Secretary Geithner to hold briefing on toxic assets program today.

U.S. President Obama said risks still haunt U.S. financial system.


STOCK MARKET OUTLOOK.

SELL on market rally at CI key resistence level of 860 to 880 in the run up to UMNO election this week. BUY ON WEAKNESS preferably at below 800 level.


For further inquiries please call:-
KAMEL BIN MOHD YUSOH.
INSTITUTIONAL DEALER.
KENANGA INVESTMENT BANK BHD.
013-6306544 or 03-21634549/50.
March 23, 2009.