RHBInvest Research Highlights

Top Story

Benchmarking:
Major changes ahead.
Stock picking is still important with news flow remaining one of the key catalysts.


Sector Call


Media:
Oct print and TV adex up by 9.0% YoY
No change to our Overweight call on the sector.

Corporate Highlights


MRCB:
To merge with IJM Land.
Maintain Trading Buy. Fair value is RM2.30.


IJM Land:
Thumbs up.
Maintain Outperform and revised fair value of RM3.65.


EON Capital:
Underlying operations coming along nicely.
Fair value is RM7.30. Underperform call.

Mah Sing:
Stocking up landbank.
Fair value is raised to RM2.43 (from RM2.40). Maintain Outperform.

Parkson:
Injection of Shantou Parkson into PRG.
Fair value is maintained at RM7.36. Maintain Outperform.

Technical Highlights


Daily Trading Strategy:

• Tuning into a “sell” mode.
• Selling pressure triggered by the strong selldown in the regional markets yesterday.
• Investors Opted to trim down their holdings on the core bluechips, hence triggering the renewed selling pressure on counters like the banks in late trading yesterday.
• The FBM KLCI must recover to above the 40-day SMA today to avoid further selldown on the local bourse, technically.
• However, in view of the fresh political tension in Korea peninsula, plus the nervousness on the possibility of further tightening measures from Beijing, sentiment is likely to turn into a “sell” mode temporarily.
• On the upside, the immediate key level is at the 40-day SMA of 1,493, while downside is seen at 1,450.

Daily Technical Watch: Maybank

• Will turn short-term bearish if it dips below the 10-day SMA
• Immediate Support at RM8.15
• Immediate Resistance at RM8.89