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KLCI falls nearly 14pts at opening, but seen overdone
CIMB Research upgrades construction sector to Overweight
Consolidation on Bursa Malaysia set to continue

KLCI falls nearly 14pts at opening, but seen overdone

Posted: 09 May 2013 06:14 PM PDT

KUALA LUMPUR: Malaysia's blue chips fell at the start of Friday's trade as the market extended its consolidation phase, with investors seen taking profit on banks and Genting Bhd, but the selling could be overdone as the broader market displayed resilience and trading volume low.

At 9am, the FBM KLCI was down 13.76 points to 1,752.31. Turnover was 18.86 million shares valued at RM15.39mil. There were 70 gainers, 36 losers and 86 counters unchanged.

Maybank Investment Bank Research said the KLCI's resistance level of 1,766 and 1,826 will cap market gains, whilst obvious support areas are located at 1,718 and 1,764.

It said the KLCI's recent swings were: 1,699.68 (high), 1,597.00 (low), 1,664.39 (high) and 1,613.94 (low).

"We prefer to take a Trading' stance on the index as a gap-up move between 1,718.44 (previous all-time high) and 1,743.14 (Monday's low) has emerged. As the key blue chips were softer, there were rotational activities into mid-cap and lower liner stocks. Pre-weekend profit-taking may emerge today," it said.

Petronas Dagangan fell 56 sen to RM23.80, Genting 38 sen to RM10.42 while Petronas Chemicals gave up 20 sen to RM6.38 and Tenaga fell nine sen to RM8.18.

Among the banks, HL Bank lost 28 sen to RM14.32, Maybank eight sen to RM9.90 and CIMB six sen to RM8.25.

As for plantations, heavyweight Sime Darby lost 23 sen to RM9.28 and PPB Group six sen lower at RM12.84.

CIMB Research upgrades construction sector to Overweight

Posted: 09 May 2013 05:59 PM PDT

KUALA LUMPUR: CIMB Equities Research is upgrading Malaysia's construction sector from Neutral to Overweight and raised all stocks to Outperform with Gamuda and Mudajaya as the top picks.

It said on Friday, in the medium term, it expects greater conviction on the part of the government in the rollout of major projects.

"We scale back RNAV discounts by 10 to 20 percentage points across the board and raise our target construction price-to-earnings (P/E) from 13.5 times to our new target market P/E of 15.6 times," it said.

CIMB Research said post elections, public transportation upgrade returns as the key theme for the sector.

"We expect to see a revival of this theme in H2, 2013. The list of projects is no different but the scenario has changed in that there is now continuity of the government's public transport upgrade initiatives under the Economic Transformation Programme (ETP).

"There seems to be similar optimism on the ground. SPAD said that the recent elections have made it even more motivated to continue with the public transport transformation plan," said the research house.

It added that the MRT Corp had stated the public should expect more news on MRT 2 & 3 in the coming weeks or months.

CIMB Research said that political risks have been considerably reduced, putting the spotlight on the RM40bil to RM50bil MRT 2 & 3, RM30bil KL-Singapore high speed rail (HSR), various rail and double tracking upgrades, and the RM8bil Gemas-Johor Baru double tracking.

Consolidation on Bursa Malaysia set to continue

Posted: 09 May 2013 05:45 PM PDT

Published: Friday May 10, 2013 MYT 8:45:00 AM

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) expects the consolidation pattern on the Malaysian bourse to carry on for a while more.

"After a jump of 71.3-point or 4.2% thus far this week, the benchmark FBM KLCI is expected to digest the recent gains by swinging between 1,750 and 1,785 in the meantime," it said on Friday. HDBSVR said that news flows to be out around noon include the monthly plantation report for April. The latest statistics on production, export and inventory may cause movements in the crude palm oil (CPO) price, which has been stuck between RM2,200 and RM2,600 per tonne since late September last year. The research house said on the corporate front, there could be share price actions in CIMB, as the banking group has decided to resume with its dual listing plan in Thailand.

Also attracting interest could be Encorp, which secured a RM42.7mil contract to construct buildings.

Kredit: www.thestar.com.my

Khamis, 9 Mei 2013