Monday 27 April 2009.

WEEKLY AND DAILY MARKET REPORT.


Friday Markets Closing Prices.

KLCI 992.68 up 14.04 or 1.43%.
DJIA 8,076.29 up 119.23 or 1.50%.
Crude Oil US$51.55 up US$1.93 or 3.89%.
July FCPO RM2,585.
Ringgit 3.5830.


STOCK MARKET OUTLOOK.

Recommending investor to continue buying KLCI stocks i.e. plantation sector on economic and price recovery play especially on any market retracement.

Stocks Recommendations.

1. Plantation Sector - The current price recovery on CPO were based on drop in palm oil stocks and a continue rally in soybeans prices in the US. Further price recovery can be expected in tandem with economic recovery as the price of crude oil will strengthen and the US dollar will weaken due to the printing of trillion of dollars by the US government.

Moreover, the world's top three rubber producing countries plan to cut exports by a combined 48,000 tonnes per month from the second quarter in a bid to shore up prices. The International Rubber Consortium also planned to enter rubber futures markets, taking positions in a bid to influence prices as well as to hedge prices of the rubber in member countries' stocks.

2. TM Bhd, RM3.74, BUY rating, after Axiata Bhd, RM2.10, BUY rating, paid the remaining balance of RM2 billion of the RM4 billion owed to TM as part of the demerger exercise. TM Bhd proposed dividend of RM0.98 per share is still pending even though TM are better off to use the money to reduce their existing RM7 billion debts and for the capital expenditure of the RM11 billion broad band project.

3. MAA Holdings Bhd, RM0.635, BUY rating, as insurance industry is one of the main beneficiary of stock market recovery. MAA is an undervalued company that will be on a net cash position with the proposed sale of their general insurance business to AM Group which had been revised downward to RM254.83 million from RM274.8 million pending Bank Negara approval.

MAA balance sheets as at 31.12.2009 :-

Total Assets RM7.583 billion.
Total Life Fund Assets RM 6.2 billion.
Total Borrowings RM231.381 million.
Cash in hand RM 52.386 million.
Net Assets Per Share RM0.70.



For further inquiries please call :-

Kamel Bin Mohd Yusoh.
Institutional Dealer.
Kenanga Investment Bank Bhd.
013-6306544 or 03-21634549/50.
April 27, 2009.