RHBInvest Research Highlights 12th November 2010

Top Story

AirAsia:
3QFY12/10 results to meet our expectations.
Indicative fair value is RM2.10. Maintain Underperform.


Corporate Highlights


Paramount:
Proposing 40 sen special dividend.
Fair value to RM6.20 (from RM5.80). Maintain Outperform.



MBM Resources:
Flying high in 3Q
Maintain our Outperform call on MBM with a revised fair value of RM4.96 (down from RM5.30).

Star:
Dampened by weaker contribution from city neon and high tax rate.
Fair value is lowered to RM4.01 (from RM4.43); we upgrade our call on the stock to Outperform.

Daibochi:
Within expectations as margins remain under pressure.
Fair value is unchanged at RM3.10. Maintain Market Perform.


Technical Highlights

• Daily Trading Strategy:
• Retesting the supportive 10-day SMA.
• FBM KLCI staged a surprise steep pullback yesterday and chalked up a huge bearish candle that confirmed the previous negatively biased warning sign – the “star” candle.
• But as long as it can sustain at above 1,500, we will remain optimistic on the FBM KLCI’s bullish uptrend.
• Nevertheless, we foresee a volatile market condition likely in the near term, before the market shows sign of a clearer trend direction.

Daily Technical Watch: OSK Holdings

• Further upside if it sustains at above RM1.90.
• Immediate Support at RM1.90
• Immediate Resistance at RM2.10