RHBInvest Research Highlights 26th October 2010

Top Story

Government Measures:

• A long and bumpy road.
• Market is driven by news flow, and this will continue to provide support for certain key stocks.

Corporate Highlights

Glomac:

• Buying back 18 units of Suria Stonor.
• Maintain Outperform rating, with a fair value of RM2.09.

Perwaja:

• Constructing a concentration and pelletising plant in Kemaman.
• Indicative fair value is RM1.37. Maintain Outperform.

Technical Highlights

Daily Trading Strategy:

• Trading sentiment turning more upbeat.
• FBM KLCI managed to sustain at above the supportive 10-day SMA in the recent sessions.
• Given the robust trading volume and the active rotational interests recently.
• Trading sentiment is poised to turn even more positive in the near term.
• Lower liners and the selective sectors like construction, plantation, brokerages and property-related counters are expected to lead trading action.

Daily Technical Watch: Sino Hua-An

• Next target is to cover a tiny technical gap at RM0.435
• Immediate Support at RM0.31
• Immediate Resistance at RM0.435