Monday June 22, 2009.

WEEKLY MARKET REPORT.

Friday Markets Closing Prices.

KLCI 1059.50 up 5.09.
September FCPO RM2,285.
Ringgit 3.53.
DJIA 8,539.73 down 15.87 or 0.19%.
Crude Oil US$69.55 down US$1.82 or 2.55%.
Gold US$936.20 up US$1.60 or 0.17%.
Natural Gas US$4.03 down US$0.06 or 1.40%.

STOCK MARKET OUTLOOK.

BUY and ACCUMULATE high quality stocks during the next much anticipated market consolidation phase as market is vulnerable to further profit taking with the players holding on a huge paper profits since the rally started in March.

Moreover, the market valuation look stretch in the short term after KLCI hit intraday high of 1096 and closed at 1091 on Monday June 15, 2009. Based on June 15, 2009 closing prices, the forecast FY2009 Price Earnings Ratio for the FTSE Bursa Malaysia KLCI 30 Stocks Index were 21X and the Dividend Yield Ratio were 3.1%.

For the medium to long term, any market pullback or selloff will provide a trading opportunity and an opportunity to add blue chip stocks into investors portfolio.

The upcoming 2Q 2009 reporting season and 3rd Quarter 2009 Stock Market Outlook together with a new economic numbers coming out will provide further clues to market direction.

Meanwhile, the International Monetary Fund (IMF) is likely to revise its 2010 growth forecast for the world economy up with signs the rate of decline in global output has moderated. However, IMF warned it was far too early to declare victory, with financial conditions far from normal and the world economy still in recession.

IMF said while the latest data point to a slowing of the global contraction, there is still great uncertainty regarding the timing and pace of economy recovery.

However, IMF said signs are emerging that the rate of output decline has moderated, financial conditions have improved, confidence is recovering gradually and indicators of future production and demand have firmed.

KLCI TECHNICAL OUTLOOK.

Next Support Level 1050.
Strong Support Level 1000.
Immediate Resistance Level 1100.
Year End 2009 Target 1200 Level.

STOCK BUY RECOMMENDATION.

BUMIPUTRA COMMERCE HOLDINGS BHD ( RM9.25). (Non Shariah Compliant).

BCHB plans to implement RM3 billion cumulative subordinated fixed notes programme. The programme will be available for 15 years from the date of first issuance, while tenure of the subordinated notes is 50 years. Proceeds from the issuance of the subordinated notes will utilized by BCHB for its working capital and other general corporate purposes.

BCHB valuation still look cheap based on better than expected 1Q 2009 results. The group is well positioned to capitalize on the regional economics recovery.

For further enquiries please call:-

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