Today TRADING IDEA is a SHORT-TERM BUY call on IGB.

04 Jan 2012

IGB Corporation Berhad (IGB) is an investment holding and property development company. Through its subsidiaries, the company has operations in hotel management, project management, and provides construction services.

IGB made a major daily Wave 5 low of RM1.75 on 4 October 2011, with oversold and bullish divergent signals. Furthermore, all its positive indicators are very strongly supportive of much further Wave 3 upside. We feel that IGB will surge further in the period mentioned above.

SHORT-TERM BUY (TECHNICAL) on dips for IGB with its firm support areas of RM2.27 and RM2.66. The potential Wave 3 & 5 upside target areas is located at RM3.00, RM3.24 and RM3.78. Stop-loss is at RM2.25.






Some trading stocks that we like are: AEONCR, AFG,
GENTING, HANDAL, HIBISCS, IGB, JCY, KIANJOO,
LATEXX, MPHB, PERISAI, RSAWIT, SEACERA,
SUNWAY, SUPERMX, TENAGA, TIMECOM,
UOADEV and YHS.

FBM KLCI: Key Points

• IGB – On a very firm Wave 3 surge up
• FBMKLCI – May re-test resistance levels
• Obvious supports of 1,490 & 1,513
• 1,516 & 1,530 may cap the rebounds

(Information from MBB)

Local News: 04 Jan 2012

04 Jan 2012
Maybank: Given until June 1, 2012 to sell down stake in BII. Malayan Banking Bhd had received a letter, dated Dec 27, from Indonesia's Badan Pengawas Pasar Modal dan Lembaga Keuangan (Bapepam) for more time to fulfill the mandatory sell-down requirement for BII, after several extensions. Maybank owns 97.5% of BII which it had acquired in 2008. (Source: The Edge)

TanChong: gets exclusive SYM distributorship in Laos. Tan Chong Motor Holdings has won a three-year exclusive distributorship for SYM motorcycles in Laos where it expects to sell 12,200 units in the first three years of operations. The distribution is expected to commence in the first half of 2012. (Source: Bursa Malaysia)

Bonia: Buys into Braun Buffel. Just over a year after expanding its brand portfolio to include rights for Braun Buffel in the Asia-Pacific, Bonia Corp Bhd is taking a bigger step abroad by taking a 49% stake in the Germany-based leather goods maker in a deal worth RM13.1m. (Source: Bursa Malaysia)

Airlines: Deal under probe. The Malaysia Competition Commission (MYCC) wants AirAsia Bhd and Malaysia Airlines (MAS) to provide more information and documents regarding their share swap agreement to find out if it could potentially put air travelers at a disadvantage. The MYCC, which began operations yesterday, would continue its probe if there was a breach of anti-competitive behavior and abuse of dominant position in the deal which was signed in August. (Source: The Star)

Construction: Gemas-JB rail job winner to emerge in March. The winner for the contract to build the 197km Gemas-Johor Baru electrified double-track railway line will only be known in March. They are China Railway Engineering Co (CREC), China Railway Construction Co (CRCC) and China Communication Construction Co (CCCC), the three are subsidiaries of China's Ministry of Railway. (Source: Business Times)

F&B: Kedah to review Kulim liquor ban. The Kedah government will review the decision by the Kulim district office to stop issuing liquor licences at the end of June. However, several parties have mentioned that this is very much at a proposal stage and no decision has been taken, and the state government has to come up with clear directives on the matter. (Source: The Sun)


(Information from MBB)

Local News: 03 Jan 2012

03 Jan 2012
Telekom Malaysia: RM3b capital expenditure to improve services. TM plans to spend up to RM3b in capital expenditure this year as it continues to roll out high speed broadband (HSBB) access to more areas and expand its internet access beyond homes and offices via WiFi hotspots. By April, Kuala Lumpur City Hall has mandated that all eateries in the city which has a floor space of 120 sq m or more to provide WiFi at their premises. (Source: The Star)

MAHB: Offers direct connection to Russia as Transaero debuts at KLIA. Transaero, the sole airline from Russia to operate into Kuala Lumpur, operates one weekly flight every Saturday from Moscow and Kuala Lumpur and vice versa, using a Boeing 767 aircraft with 255 seat configuration. In 2011, apart from Transaero, KLIA also welcomed Air Koryo and Lion Air, while Egypt Air made a comeback to KLIA. (Source: The Sun Daily)

Auto: Positive sentiment drives premium vehicle sales in 2011. Sales of premium segment vehicles were robust in 2011 indicating positive consumer sentiment and good purchasing power in a year that saw output of Japanese marques affected by earthquake in Japan and floods in Thailand. Prominent brands such as Mercedes Benz, BMW, Lexus, Audi, Volvo ad Porsche saw marked increases in the 11 months ended November. (Source: The Star)

MCIL: Payout ratio of 60% for next two years. Media Chinese International Ltd (MCIL) sees that its dividend surprises are likely to go forward to right-size the group's balance sheet. It is incorporating a payout ratio of 60% for the next two years, which translates into a decent yield of more than 5% per year. (Source: Business Times)

(Information from MBB)

Local News: 30 December 2011

30 December 2011
KFC: Another KFC tussle? There may again be another tussle for control of the KFC fast food business in Malaysia. This time, the Malay Chamber of Commerce Malaysia (MCCM) is challenging a joint bid by Johor Corp (JCorp) and CVC Capital Partners Asia Pacific to acquire the assets and liabilities of QSR Brands Bhd and KFC Holdings (M) Bhd. MCCM would offer to buy QSR shares at RM6.90 each, thus beating the RM6.80 per share price offered by JCorp and CVC. (Source: The Star)

Transportation: MRT Corp inks deals with Jalan Inai residents. MRT Corp has sealed the Points of Agreement (POA) with owners of 21 plots of land in the Jalan Inai area affected by the MY Rapid Transit (MRT) project. The agreements are expected to resolve all outstanding issues faced by land owners with the MRT project, which connects Kajang and Sungai Buloh. (Source: Business Times)

Retail: Slower retailing as consumers turn cautious. Local retailers may experience slower growth next year, particularly because global economic developments are likely to affect Malaysia's export-oriented manufacturing sector (Source: The Star)

Media: Astro unit in JV with US firms. Astro's wholly-owned unit Celestial Pictures Ltd and two US-based companies - Saban Capital Group and Lionsgate - have set up Celestial Tiger Entertainment (CTE), an independent Asian media company focused on branded pay-TV channels, content creation and distribution across Asia. CTE offers pay channels to Asian consumers by combining Celestial Pictures' flagship channels, namely Celestial Movies, Celestial Classic Movies, Celestial Movies on Demand and three pay-TV channels of Tiger Gate Entertainment, a Lionsgate/Saban Capital partnership in Asia. (Source: The Sun)

Energy: New generation IPPs to draw familiar names. The fourth generation independent power producers (IPPs) are expected to attract bids from familiar names along with some new players. The commission is inviting applicants with previous experience in implementing power projects to submit their expressions of interest by Jan 12. (Source: The Edge Financial Daily)

(Information from MBB)

Local News: 28 December 2011

28 December 2011

WCT: In Vietnam property venture. WCT Bhd's wholly owned subsidiary WCT (S) Pte Ltd has been awarded an investment certificate by the People’s Committee of Ho Chi Minh City (HCMC) to undertake a residential and commercial mixed development in the Vietnamese city. The project, covering 46,577 sq m, would be at the new urban development area of Saigon South. WCT owns 70% of WCT-DPN Co Ltd that will develop and manage the project, while Southern Land Corp owns the remaining 30%. (Source: Bursa Malaysia)

Bumi Armada: Acquisition of asset. Bumi Armada Bhd's wholly-owned subsidiary, Bumi Armada Offshore Holdings Sdn Bhd (BAOHL) has exercised its option to purchase Rainbow River vessel for a cash consideration of RM68m. The acquisition will be completed upon the delivery of the vessel expected in the first quarter of 2012. (Source: Bursa Malaysia)

JCorp: Mulls hotel sales. Johor Corp (JCorp) is considering selling some of its hotel assets and reinvesting the money to drive earnings from its hospitality business. JCorp Hotels owns and manages five properties in Johor namely The Puteri Pacific Johor Bahru, Persada Johor International Convention Centre, Sibu Island Resort, Selesa Johor Bahru and Selesa Pasir Gudang, and one in Negri Sembilan, which is Selesa Port Dickson. (Source: Business Times)

Plantation: Felda on track to list by April. The plan to list Felda Global Ventures Holdings Sdn Bhd (FGVH) by April next year is on track, said its President and CEO Datuk Sabri Ahmad, amid mounting opposition from various groups claiming to represent the settlers' interests. FGVH is firm in its mission to get the listing done within the time frame. (Source: The Edge Financial Daily)

Energy: Bids for new power plant begin. The bidding process for the 4,500MW power generation to replace the capacity of the first-generation power purchase agreements (PPAs) and to cater to new demand beyond 2016 has started. The Energy Commission (EC) has issued a notice for prospective bidders for the development of a combined cycle gas turbine (CCGT) power plant in Peninsular Malaysia. The CCGT power plant was to sell its capacity and energy to Tenaga Nasional Bhd (TNB) under a new PPA. (Source: The Star)

(Information from MBB)