RHBInvest Research Highlights 09th November 2010

Top Story

Timber:

• Looking good.
• Overweight stance on the sector.

Ta Ann: Fair value revised to RM5.92, from RM5.12. Outperform (up from MP)
Jaya Tiasa: Fair value revised to RM5.31, from RM4.73. Outperform
WTK: Fair value revised to RM1.64, from RM1.60. Outperform

Corporate Highlights

Digi:

• Prepared to hold its ground.
• Maintain Outperform call on DiGi with fair value of RM26.35

AirAsia:

• Price war looming.
• Fair value is cut from RM3.01 to RM2.10. Downgrade to Underperform from outperform.

MAS:

• To expand Firefly into a full-fledged low-cost carrier.
• Maintain Underperform. Fair value is RM1.91

Dayang:

• Jumped significantly in 2QFY10.
• Fair value raised to RM3.86/share (from RM3.01 previously), Maintain Outperform.

Technical Highlights

Daily Trading Strategy:

• A potential removal of 1,524.69 today.
• A penetration to above 1,524.69 will induce another wave of fresh buying momentum, in our opinion.
• Potentially, the FBM KLCI could head higher towards our medium-term upside projection target at 1,668 over the longer tem.
• In fact, even if it fails to take out 1,524.69, the current robust sentiment is likely to persist amid strong rotational plays and robust trading volume of late.

Daily Technical Watch: DNP Holdings

• Likely to push for further gains toward RM2.12 and RM2.37
• Immediate Support at RM1.80
• Immediate Resistance at RM2.12