Monday June 1, 2009.

WEEKLY MARKET REPORT.

Friday Markets Closing Prices.

KLCI 1044.11 up 2.87.

DJIA 8,500.33 up 96.53 or 1.15%.

Crude Oil US$66.31 up US$1.23 or 1.89%.

August FCPO RM2,552.

Ringgit 3.4950.

STOCK MARKET OUTLOOK.

Remain focus on stock picking or bottom up approach as the macro economic numbers such as GDP, export numbers and employment remain sluggish even though trade surplus and loans growth still positive together with healthy foreign exchange reserve. The real economy recovery accompany by job creation will begin in the 2nd Half of next year.

Recommended BUY for sectors such as Plantation and Oil & Gas that will benefit from crude oil and commodities price rally on slumping US dollar due to weak US dollar fundamental.

Recommended Plantation sector stocks such as Sime Darby Bhd RMRM7.20, Kulim (M) Bhd RM6.35 and TH Plantation Bhd RM1.66.

Recommended Oil an Gas sector stocks such as Petronas Dagangan Bhd RM7.95, Shell (FOM) Bhd RM10.90, KNM Bhd RM0.895, Wah Seong Corp Bhd RM1.81, Sapura Crest Bhd RM1.46, Perisai Petroleum Bhd RM0.61 and Scomi Group Bhd RM0.69.

Recommended companies with large US dollar loans exposure such as TNB Bhd RM8.15, Axiata Bhd RM2.29, MISC Bhd RM8.40 and TM Bhd RM2.62 that will benefit from weakening US dollar.

Also recommended beaten down blue chips for KLCI rotational play such as BCHB Bhd RM8.55, PPB Group RM10.50, IOI Corp RM4.52, KLK Bhd RM11.50 and YTL Corp Bhd RM6.65.

Please check my "Stock Market Outlook For 2009" for most of the details write up on the recommended stocks.

STOCK RECOMMENDATION.

BUY BOUSTEAD HOLDINGS BHD at RM4.32 and ON WEAKNESS below RM4.00 as a proxy to earnings recovery in plantation, banking, building materials, property, shipbuilding and petrol station businesses.

Boustead announced 2 for 5 rights issue at RM2.80 to raise RM729 million for working capital and debt repayment.

Reiterated FY 2009 net earnings forecast of RM400 million.

Please check "Stock Market Outlook For 2009" on details write up.

TECHNICAL OUTLOOK on the KLCI.

Strong Support level - 1000.

Resistence level - 1060, 1100.

Target level - 1200.

For further inquiries please call:-

Kamel bin Mohd Yusoh.

Kenanga Investment Bank Bhd.

013-6306544 or 03-21634549/50.