RHBInvest Research

Top Story

Building Materials

Steel Sub-sector: Ann Joo vs. Southern Steel.
Still premature to turn bullish on the steel sub-sector.

Macro View

Trade

• Exports slowed down markedly in Sep.
• We expect the country’s exports to slow down in 2011, after a strong rebound in 2010.
  

BNM Measures

• Bank Negara Malaysia announced tightening measure on property financing.
• Move is to ensure a stable and sustainable property market.
  

Sector Call

Property

• The overhanging issue is now over.
• Maintain Overweight on the sector.
• We continue to like SP Setia (OP, FV = RM5.94) and IJM Land (OP, FV = RM3.50).

Banks

• BNM implements LTV cap of 70%
• Overweight stance on the sector maintained.

Corporate Highlights

Sunrise

• Suspension + unusual interim dividend.
• Maintain Outperform call and fair value of RM3.30

Daibochi

• The rising raw material price predicament.
• Fair value is RM3.10. We downgrade our call to Market Perform.

Unisem

• Guiding for a weaker 4QFY12/10.
• Fair value is RM2.31. Maintain Outperform.

Mah Sing

• 2 land banking deals cost RM166.5m
• Fair value is RM2.40. Maintain Outperform.

QL Resources

• Private placement, share split, and free warrants issue.
• Fair value is RM6.46. Maintain Outperform.

Technical Highlights


Daily Trading Strategy

• Trading is expected to be volatile today.
• Compounded with a drastic move by the Bank Negara late yesterday to curb speculative purchase on property sector.
• Ahead of the shortened week due to the Deepavali holiday on Friday, the trading sentiment in local bourse is expected to stay cautious.
• Technically, if the index manages to remove Monday’s high of 1,511.24, the index will gear towards the historical peak at 1,524.69.

Daily Technical Watch: Mulpha

• Turn bullish only if it sustains at above RM0.52 in the near term.
• Immediate Support at RM0.52
• Immediate Resistance at RM0.62