RHBInvest Research Highlight 22 Nov 2010

Top Story: Axiata

Outlook for regional cellcos is largely stable.
Earnings forecasts maintained.
We reiterate our Outperform call with SOP fair value of RM5.52

Sector Call

Telecom:
Yes unlikely to spark an all-out price war
No change to our Neutral stance on the sector.


Corporate Highlights

WCT:
Potential upside to integrated complex at KLIA2
Short-listed for the Durkhan Highway 2 project
Fair value is RM2.55. Maintain Underperform.


KFC:
Offer to buy all of QSR’s business
Fair value on the stock at KFCH at RM5.85.
We are downgrading our call on the stock to Underperform


Sunway:

• Secures RM15m piling works in Port Dickson

• Fair value is raised from RM2.35 to RM2.74
• Maintain Outperform.

Technical Highlights

Daily Trading Strategy:

• Near-term choppy trend expected
• It must still surpass the critical 10-day SMA near 1,511, and to remove the 1,524.69 level before it could return to bullishness, in our view.
• Given that the regional markets’ sentiment remains fragile, local market sentiment is likely to track the regional performance in the near term.

Daily Technical Watch: Tebrau Teguh

• Bargain hunters to return nearer to RM0.75
• Immediate Support RM0.765
• Immediate Resistance RM0.835