RHBInvest Research Highlight 19 Nov 2010

Top Story

IJM Plantation:
Highly sensitive to CPO prices.
Fair value is RM2.90. Market Perform.

Sector Call

Rubber Gloves:
First bird flu case detected in Hong Kong since 2003.
Neutral stance on the sector as the near-term outlook remains challenging.

Corporate Highlights

MPI:
Two more quarters of inventory correction.
Fair value is cut to RM5.17. Downgrade our call to Underperform (from market perform).



Daibochi:
Rising raw material prices - Part II
Fair value reduced to RM2.95. Market Perform.



KNM:
RM670m wins.
Maintain our Underperform call and fair value of RM0.37

Technical Highlights

Daily Trading Strategy:
Investors applying wait-and-see strategy.
However, given the slight downward tick on the 10-day SMA near 1,511 and the poor state of the short-term momentum readings, trading activities are likely to stay under pressure.
We foresee a rangebound trading today as the FBM KLCI fluctuates between the two SMAs (1,490 – 1,511), while most investors staying sideline ahead of the weekend.


Daily Technical Watch: WCT
Continue to trade under pressure in the immediate term
Immediate Support at RM2.80
Immediate Resistance at RM3.20