RHBInvest Research Highlights 19th October 2010

Top Story

ILB:

• Named partner in Hong Leong Asia's new warehouse project in China
• Fair value is RM1.47. Maintain Outperform.

Corporate Highlights

Public Bank:

• 9MFY10 net profit raises 19.7% yoy.
• Fair value is RM14.70. Outperform call maintained.

Technical Highlights

Daily Trading Strategy:

• The index must reclaim the 10-day SMA soon.
• If no immediate rebound to above the 10-day SMA today, the index could retrace towards the recent technical gap at 1,472.32 - 1,476.05.
• However, the medium- to long-term technical outlook will remain positive if the index manages to sustain at above the 1,450 level and the 40-day SMA near 1,453.

Daily Technical Watch:

Ann Joo Resources

• Forming a support near the SMAs prior to any technical recovery.
• Immediate Support at RM2.98
• Immediate Resistance at RM3.38