RHBInvest Research Highlights 18th October 2010

Top Story

Budget:

• Setting the pace towards transformation.
• Consequently, our end-2011 FBM KLCI target remains unchanged at 1,640

Corporate Highlights

PLUS:

• To be taken private.
• We revised our fair value from RM4.76 to RM4.60.
• We downgrade PLUS from outperform to underperform.

Technical Highlights

Daily Trading Strategy:

• Key support level is near the 10-day SMA
• FBM KLCI continued to retreat on intensifying profit-taking activities upon the announcement of the 2011 Budget by the PM.
• The benchmark could revisit the key supportive level near the 10-day SMA of 1,483 soon.
• However, we remain optimistic and expect the bargain-buying support to return near the 10-day SMA.

Daily Technical Watch: Axiata Group

• Forming a support near the SMAs prior to any technical recovery.
• Immediate Support at RM4.40
• Immediate Resistance at RM4.66

Weekly Trading Idea: CMS

• Forming base at >RM2.68 before technical rebound.
• Strategy: Buy on weakness near RM2.68 for a technical rebound soon.
• Immediate Resistance at RM2.82
• Immediate Support at RM2.68
• Exit: Cut loss if it falls below the 40-day SMA near RM2.59.