RHB Invest Highlights

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Oil & Gas:
More room for growth?

• Dialog: Fair value raised to RM1.94. Outperform (up from MP)
• Sapuracrest: Fair value raised to RM3.34. Outperform
• Kencana: Fair value raised to RM2.60. Outperform
• KNM: Fair value maintained at RM0.58. Outperform
• Dayang: Fair value maintained at RM3.86. Outperform
• Petronas Gas: Fair value maintained at RM13.51. Outperform
• Wah Seong: Fair value maintained at RM2.21. Market Perform
• Petra Perdana: Fair value maintained at RM0.44. Underperform
• We upgrade our call on the market to Overweight (from neutral previously).
• Our top pick at this juncture is Kencana, while our longer-term pick is Dialog.

Corporate Highlights

Allianz:

• On track to meet our full-year forecast.
• Maintain Outperform with fair value of RM5.34.
  

KFC:

• Another offer to buy QSR; KFCH could be privatized.
• We maintain our fair value for KFC at RM3.85.
• We also maintain our Underperform call, pending further developments.

MISC:

• Acquisition of VTTI completed, minor news flow from the LNG segment expected
• Indicative fair value is RM8.14. Maintain Underperform.

Technical Highlights


Daily Trading Strategy:

• Removing the 10-day SMA will boost sentiment.
• If the FBM KLCI is still unable to penetrate the 10-day SMA today and the daily turnover fails to improve from the current 1.0bn shares mark, selling activities may increase ahead of the weekend.
• In contrast, a removal of the 10-day SMA with a higher daily trading volume will likely boost the short-term trading sentiment, in our view.
• Nonetheless, the speculative interests are expected to drive share prices on the mid to lower-cap stocks, while mild profit-taking activities on the core defensive heavyweights may continue.
  

Daily Technical Watch: KNM Group

• Follow-through buying support if it surpasses RM0.50 soon.
• Immediate Support at RM0.44
• Immediate Resistance at RM0.50Top Story