RHBInvest Research Highlight 23 Nov 2010

Top Story

MAHB:
Price war looms, Airport blooms.
Fair value is raised to RM8.02 based on “sum-of-parts”. Maintain Outperform.

Macro View

Economy:

• Economic Highlights (published 22 Nov).
• Real GDP growth slowed down to 5.3% yoy in the 3Q.
• We expect the country’s exports to slow down in 2011, after a strong rebound in 2010.
• While exports are likely to slow down, we expect domestic demand to be resilient and will likely hold up at 5.5% in 2011.

Technical Highlights

Daily Trading Strategy: Continue to stay range-bound between the SMAs…

• The market’s trading sentiment is likely to stay sluggish in the immediate term
• Regional markets’ sentiment remains uncertain, with the volatility in currencies markets prolong.
• Investors to adopt further “wait-and-see” strategy before deciding the next course of action.
  

Daily Technical Watch: RCE Capital

• Further buying momentum towards the RM0.715 level soon.
• Immediate support RM0.61
• Immediate resistance RM0.715