RHBInvest Research Highlights 02nd November 2010

Top Story

China Plays:

• Customer, supplier, partner.
• Our China picks are Parkson, Unisem, KLK, and ILB.

Sector Call

O&G:

• Sector Riding On Positive News Flow and “Hot Money”
• We maintain our Neutral stance on the sector.

Sector Update:

• Dialog: Fair value raised to RM1.47. Outperform
• Dayang Enterprise: Fair value raised RM3.01.Outperform
• Sapuracrest: Fair value raised to RM2.97.Outperform
• Petronas Gas: Fair value raised to RM13.51.Outperform
• Kencana: Fair value raised to RM2.03.Market Perform
• Wah Seong: Fair value maintained at RM2.21.Market Perform

Semiconductor:

• Chip sales up stronger moo but continues to narrow yoy
• Remain cautious on the sector and reiterate our Neutral call

Corporate Highlights

MAHB:

• Racing to be the Asean hub: MAHB vs. AOT .
• Fair value remains unchanged at RM7.72. Outperform

KFC:

• Acquisition of four companies from JCorp.
• Fair value is RM3.85.Trading Buy call on the stock.

Technical Highlights

• Daily Trading Strategy:
• Cautious sentiment to continue.
• Positively, we keep our bullish projection based on the Fibonacci Projection method at 1,668 for the medium term.
• Outcome of the US FOMC meeting, the US mid-term election and the local by-elections in Kelantan and Sabah this week remain the key potential issues

Daily Technical Watch: Dialog:

• Revisiting UTL near RM1.30 to reassess Monday’s breakout momentum.
• Immediate Support at RM1.30
• Immediate Resistance at RM1.50