RHBInvest Research Highlight 18 Nov 2010

Top Story

CI Holdings:
Thirst quenching prospects.
We value CIH at RM4.90. Initiate coverage with Outperform.

Corporate Highlights

CSC Steel:
Near-term outlook cloudy, but dividend may surprise to the upside.
Fair value cut to RM2.12. Maintain Outperform.

HL Bank:
Loan growth gained further traction.
Fair value raised to RM11.00, from RM10.70. Maintain Outperform.

Paramount:
Above expectation.
Maintain Outperform, with an unchanged fair value of RM6.20.

Faber:
Expect a weaker 4Q, concession pending renewal.
Fair value has been lowered to RM3.77 (from RM3.82). Outperform call on the stock.

Media Prima:
3Q Earnings boosted by continued recovery in adex.
Fair value is revised to RM2.82 from RM2.75. Reiterate Outperform.

MPI:
Lower contribution from higher margin packages.
Market Perform call with a fair value of RM6.35.

Technical Highlights

Daily Trading Strategy:

• Expect a knee-jerk reaction today.
• Trading sentiment is suspected to stay negatively biased in the near term.
• Given the recent sharp falls in the regional markets, and the negative news flows on more tightening measures in China to tame inflation, as well as the renewed debt crisis in Europe.
• Investors are expected to stay defensive in sessions ahead, in our view.
• The index should seek support at the 40-day SMA near 1,489.
• Losing 1,450 will be seen as a trigger to a major correction phase on the FBM KLCI.

Daily Technical Watch: Karambunai Corp

• Sentiment remains negatively biased
• Immediate Support at RM0.18
• Immediate Resistance at RM0.225