Monday June 29, 2009.

WEEKLY MARKET REPORT.

Friday Markets Closing Prices.

KLCI 1075.77 up 1.66.
September FCPO RM2,317.
Ringgit 3.5322.
DJIA 8,438.39 down 34.01 or 0.40%.
Crude Oil US$69.16 down US$1.07 or 1.52%.
Gold US$941.00 up US$1.50 or 0.16%.
Natural Gas US$4.10 up US$0.12 or 2.91%.

NEWS.

Gamuda Bhd announced that 40% subsidiary SPLASH on 25.6.2009 received a Second Letter of Offer from Selangor State Government to take over SPLASH water assets and operations for RM1.579 billion on the equity portion and RM1.396 billion to assumed SPLASH liabilities.

At the same time, Puncak Niaga Holdings Bhd wholly owned subsidiary PNSB had received an offer from the Selangor State Government for RM887 million for the equity portion and RM1.049 billion to assumed PNSB liabilities or at 1X Net Book Value.

Meanwhile, Puncak Niaga Holdings Bhd 70% subsidiary, SYABAS, was offered RM334 million for the equity portion and RM3.027 billion to assumed the liabilities by the state government of Selangor or at 1X Net Book Value.

STOCKS RECOMMENDATION.

BUY rating for both Gamuda Bhd and Puncak Niaga Holdings Bhd as they have until Monday June 29, 2009 to accept the offer. Otherwise, a better offer from the Federal Government can be expected to resolve the issue.

STOCK MARKET OUTLOOK.

BUY and ACCUMULATE quality shares for the medium to long term investment.

FTSE Bursa 30 Stocks Index currently trading around prospective Price Earnings Ratio of 22X for FY2009 and prospective Dividend Yield of 3.7% for FY2009.

KLCI Technical Outlook.

Resistance level at 1096.
Support level at 1050, 1028 and 1000.
Target for 2009 at 1200.