Monday June 15, 2009.
WEEKLY MARKET OUTLOOK.
Friday Markets Closing Prices.
KLCI 1090.15 up 1.19.
August FCPO RM2,465.
Ringgit 3.50.
DJIA 8,799.26 up 28.34 or 0.32%.
Crude Oil US$72.04 down 0.64 or 0.88%.
Gold US$940.70 down 21.30 or 2.21%.
Natural Gas US$3.86 or 1.93%.
STOCK MARKET OUTLOOK.
TRADING BUY recommendation especially on weakness for the Oil and Gas sector stocks such as Kencana Petroleum Bhd, Sapura Crest Bhd, Deleum Bhd, KNM Bhd, Dailog Bhd, Perisai Petroleum Bhd, Wah Seong Bhd, Petra, Dayang and Daya as PETRONAS CEO Tan Sri Hassan Marican said the company will spend RM35 billion in capital expenditures this year besides the other oil majors. LONG TERM BUY for Petronas, the other oil majors related counters and also quality Bursa and KLCI index linked stocks.
In the U.S, the Dow Average erases 2009 loss as investors see recession ending.
Meanwhile, in Italy the G8 nations get ready for economy recovery, as they considered how to unwind their massive stimulus policies while warning it was too early to celebrate the end of the global crisis.
Moreover, the World Bank forecast earlier this week global economy will shrink by 3.0% this year, worse than earlier estimate of 1.75% contraction.
However, the way Melbourne shrugging off swine flu shows ‘pandemic’ may not mean global panic.
KLCI component stocks Astro All Asia Network PLC posted a net profit of RM34.53 million in the Q1 2009 ended April 30 due to strong growth in Malaysian television business but MAS Bhd posted a net loss of RM694.8 million included derivative loss of RM557.0 million. MAS also reported an unrealized fuel hedging mark to market loss of RM3.38 billion.
KLCI TECHNICAL OUTLOOK.
Immediate Resistance at 1100 level.
Major Resistance at 1200 level.
Long Term Target at 1331, all time high of 1525 and 1661 the latest by 2011 or before the next general election.
MAS BHD Q1 2009 RESULTS ANALYSIS AND STOCK RECOMMENDATION.
MAS posted Q1 loss due to lower revenue and hedging losses. However, the unrealized fuel hedging loss mark to market, using fuel forward curve as at May 29, 2009 has reduced by RM1.15 billion. MAS total fuel hedged as at June 8, 2009 was 21.9 million barrels for the periods up to Dec. 31, 2011.
MAS has applied and been granted a conditional waiver until Dec. 31, 2009 from categorized as Affected Listed Issuer under PN17 after it triggered the criteria under Paragraph 2.1 of PN17 in relation to shareholders equity.
MAS still has cash in hand of RM2.1455 billion and total debt of RM1.614 billion outstanding as of March 31, 2009.
Meanwhile, IATA forecast the airline industry will lose more than US$9.0 billion from loss of US$4.7 billion despite fell in the oil price. Demand is projected to fall sharply with passenger traffic expected to contract by 8% and cargo demand expected to decline by 17%. This is further compounded by the threat of outbreak of the Influenza A (H1N1) virus. The continued delivery of new aircraft has caused heavy fare discounting.
For 2009, the Group’s targets are RM499 million loss or RM50 million net income as on target, RM51m to RM500m net profit as exceeding and RM501m to RM1b net profit as outstanding.
STOCK RECOMMENDATION ON MAS BHD – SELL and buy back at lower price as the government will continue to support the company as a matter of strategic national interest and won’t allow the company to fail. The expected global economy recovery in the coming months will provide the floor to the company share price.
For further enquiries please call :-
Kamel Bin Mohd Yusoh.
Institutional Dealer.
Kenanga Investment Bank Bhd.
013-6306544 or 03-21634549/50.
June 15, 2009.
WEEKLY MARKET OUTLOOK.
Friday Markets Closing Prices.
KLCI 1090.15 up 1.19.
August FCPO RM2,465.
Ringgit 3.50.
DJIA 8,799.26 up 28.34 or 0.32%.
Crude Oil US$72.04 down 0.64 or 0.88%.
Gold US$940.70 down 21.30 or 2.21%.
Natural Gas US$3.86 or 1.93%.
STOCK MARKET OUTLOOK.
TRADING BUY recommendation especially on weakness for the Oil and Gas sector stocks such as Kencana Petroleum Bhd, Sapura Crest Bhd, Deleum Bhd, KNM Bhd, Dailog Bhd, Perisai Petroleum Bhd, Wah Seong Bhd, Petra, Dayang and Daya as PETRONAS CEO Tan Sri Hassan Marican said the company will spend RM35 billion in capital expenditures this year besides the other oil majors. LONG TERM BUY for Petronas, the other oil majors related counters and also quality Bursa and KLCI index linked stocks.
In the U.S, the Dow Average erases 2009 loss as investors see recession ending.
Meanwhile, in Italy the G8 nations get ready for economy recovery, as they considered how to unwind their massive stimulus policies while warning it was too early to celebrate the end of the global crisis.
Moreover, the World Bank forecast earlier this week global economy will shrink by 3.0% this year, worse than earlier estimate of 1.75% contraction.
However, the way Melbourne shrugging off swine flu shows ‘pandemic’ may not mean global panic.
KLCI component stocks Astro All Asia Network PLC posted a net profit of RM34.53 million in the Q1 2009 ended April 30 due to strong growth in Malaysian television business but MAS Bhd posted a net loss of RM694.8 million included derivative loss of RM557.0 million. MAS also reported an unrealized fuel hedging mark to market loss of RM3.38 billion.
KLCI TECHNICAL OUTLOOK.
Immediate Resistance at 1100 level.
Major Resistance at 1200 level.
Long Term Target at 1331, all time high of 1525 and 1661 the latest by 2011 or before the next general election.
MAS BHD Q1 2009 RESULTS ANALYSIS AND STOCK RECOMMENDATION.
MAS posted Q1 loss due to lower revenue and hedging losses. However, the unrealized fuel hedging loss mark to market, using fuel forward curve as at May 29, 2009 has reduced by RM1.15 billion. MAS total fuel hedged as at June 8, 2009 was 21.9 million barrels for the periods up to Dec. 31, 2011.
MAS has applied and been granted a conditional waiver until Dec. 31, 2009 from categorized as Affected Listed Issuer under PN17 after it triggered the criteria under Paragraph 2.1 of PN17 in relation to shareholders equity.
MAS still has cash in hand of RM2.1455 billion and total debt of RM1.614 billion outstanding as of March 31, 2009.
Meanwhile, IATA forecast the airline industry will lose more than US$9.0 billion from loss of US$4.7 billion despite fell in the oil price. Demand is projected to fall sharply with passenger traffic expected to contract by 8% and cargo demand expected to decline by 17%. This is further compounded by the threat of outbreak of the Influenza A (H1N1) virus. The continued delivery of new aircraft has caused heavy fare discounting.
For 2009, the Group’s targets are RM499 million loss or RM50 million net income as on target, RM51m to RM500m net profit as exceeding and RM501m to RM1b net profit as outstanding.
STOCK RECOMMENDATION ON MAS BHD – SELL and buy back at lower price as the government will continue to support the company as a matter of strategic national interest and won’t allow the company to fail. The expected global economy recovery in the coming months will provide the floor to the company share price.
For further enquiries please call :-
Kamel Bin Mohd Yusoh.
Institutional Dealer.
Kenanga Investment Bank Bhd.
013-6306544 or 03-21634549/50.
June 15, 2009.
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