Wednesday 25 March 2009.

DAILY MARKET REPORT.

Tuesday Markets Closing Prices.


KLCI 877.92 down 0.38.
DJIA 7,659.97 down 115,89 or 1.49%.
Crude Oil US$53.45.
May FCPO 2,012.
Ringgit 3.6230.


LOCAL NEWS.

RAM Ratings Services Bhd predicted banks gross non performing loans ratio to reach 9% this year from 4.1% as December 2008.

TM International Bhd, RM2.61, has received shareholders approval to raise RM5.25 billion to pare down debts via a rights issue of 5 for 4 at RM1.12.

Stock Recommendation - TAKE PROFIT and SELL as high debts level and forex volatility will drag down the TMI earnings going forward but CELCOM remain the bright spot for the company.

Maybank Bhd, RM4.40, to up stake in Vietnam An Binh Bank by another 5% to the ceiling rate of 20%. Maybank ex date for the rights issue of 4 for 5 at RM2,74 on the 31.3.2009.

Stock Recommendation - TAKE PROFIT and SELL. Maybank fair value at 1X NTA of RM3.70 cum R.I.


WORLD NEWS.

China proposed to ditch the US dollar as world reserve currency to stabilise the world monetary climate with a different standard run by the IMF. China suggested the IMF's Special Drawing Rights (SDR) could serve as the super sovereign reserve currency.

Japanese auto sales to drop to 32 year low.


Corporate Results.

Kencana Petroleum Bhd, RM1.20, unaudited 2Q FY 31.7.2009, net profit up 25.7% to RM27.25m, revenue down 22% to RM274.09m. EPS up to 3.02 sen from 2.43 sen a year earlier.
6 months 2009 net profit up 52% to RM60.3m, revenue down 30% to RM592.58m. EPS at 6.69 sen up from 4.45 sen. Kencana proposed a dividend payment of 0.01 sen.

Stock Recommendation - BUY on low valuation, substantial contracts in hand, potential to land new contracts and improved margin.


For further inquiries please call:-
Kamel Bin Mohd Yusoh.
Institutional Dealer.
Kenanga Investment Bank Bhd.
013-6306544 or 03-21634549/50.
March 25, 2009.