RHBInvest Research

Top Story

Plantations:

• Peak production over, low season
• As weather woes play havoc with vegetable oil production and expectations of future harvests, CPO prices have continued to rise, spurred on further by a pickup in pace of financial demand.
• We maintain our view that CPO prices could continue to stay strong in the near term (potentially until 1H2011)
  

Corporate Highlights


SapuraCrest:

• 9MFY11 net profit was in line, accounting for 73.7% and 73.8% of our and consensus estimates.
• Maintain forecasts and Outperform call with unchanged RM3.34 fair value

Technical Highlights

Daily Trading Strategy:

• We continue to advocate “selling into strength” until and unless the benchmark index removes the key overhead hurdle at 1,524 and 1,532.

Daily Technical Watch: Axiata Group

• Removing RM4.80 will lead to further upside potential…
• Immediate Support:- RM4.40
• Immediate Resistance:- RM4.480

Weekly Trading Idea: IOI Corporation

• Bargain buys nearer to RM5.60.
• Immediate Resistance = RM6.01
• Immediate Support = RM5.60 Exit:
• Cut loss if the stock loses the key level of RM5.60.

Commodities & Currencies:

• Light Sweet Crude Oil futures: Falling below US$87 will mark a false breakout on the previous week’s rally.
• Crude Palm Oil futures (CPO): The commodity is likely to retest the RM3,700 resistance soon.
• Ringgit (RM)/US$: The pair may ease towards the 3.07 level if the trend persists.
• Japanese Yen (JPY)/US$: The yen could weaken further in the near term and heads toward the 87 level.
• Euro Dollar (EUR)/US$: The EUR might continue to weaken against the greenback.
• US Dollar Index (DXY): A likely resumption of the recent rally soon.