Local News: 08 December 2011

08 December 2011
Pavilion REIT: Seeks expansion. CEO Philip Ho of Pavilion REIT Management Sdn Bhd, the largest retail REIT in Malaysia, said the trust is seeking opportunities to expand its assets in Penang, Johor and the Klang Valley. It was also said that the company's trustees had signed three rights of first refusal (ROFR) to acquire Farenheit88, the Pavilion Mall's extension, and a mall in USJ Subang Jaya. (Source: Business Times)

Toyoink: Gets nod for R&D on USD2.5b Viet power plant. Ink manufacturer Toyoink Group Bhd has been given the green light by the Vietnamese government to conduct R&D on a proposed USD2.5b (RM7.8b) thermal power plant in the country. Named the Song Hau 2 thermo power plant, it is slated to have a capacity of 2x1000 MW and will be located at the Song Hau power centre in Hau Giang province. (Source: The Edge Financial Daily)

DRB Hicom: DRB Hicom, Volkswagen likely to have a share control in Proton. DRB Hicom Bhd's bid for control over Proton Holdings is likely to include the presence of Volkswagen AG at a later stage according to a reliable source. DRB Hicom's plan is to first secure a controlling block in Proton and subsequently divest some of its equity to Volkswagen resulting in both parties sharing control. (Source: The Star)

Bumi Armada: To get USD300m loans. Offshore oilfield services provider Bumi Armada Bhd will sign agreements for financing facilities exceeding USD300m (RM936.69m) today. The agreement is with several financial institutions, which are not named in the note. (Source: The Star)

Sanichi: Ties up with FIRC. Precision mould fabricator Sanichi Technology Bhd is forming an alliance with FIRC Trade (M) Sdn Bhd to venture into the business of mining and supplying minerals. The joint venture was currently on "paper terms" and investment is yet to be decided. It was also said that the amount of investment in the joint venture would be decided upon its first business received from the partnership. (Source: The Star)

Media: The Malay Mail to hit the streets in the morning. The Malay Mail will hit the streets as a mainstream morning national newspaper starting January. It promises a good read, including investigative reporting on issues of concern to readers, led by its editor (news) Terence Fernandez. (Source: Malaysian Reserve)


(Information from MBB)

Today Trading Idea for today is a SHORT TERM BUY call on ORIENT

08 December 2011

Oriental Holdings Berhad (ORIENT) is an investment holding company whose subsidiaries distribute and assemble motor vehicles, manufacture motor cycles and bicycle components. It also develops properties, processes rubber and oil palm, sells concrete products, electrical components, and motor parts.

ORIENT made a major daily Wave 5 low of RM4.30 on 21 October 2011, with oversold and bullish divergent signals. Furthermore, all its positive indicators are very supportive of much further upside. We feel that ORIENT will surge in the period mentioned above.

SHORT-TERM BUY (TECHNICAL) on retracement (to RM4.73 and RM4.83) for ORIENT with its firm support areas of RM4.50 and RM4.85. The potential Wave 3 & 5 upside target areas is located at RM5.15, RM5.25 and RM5.50. Stop-loss is at RM4.48.



FBM KLCI: Key Points

• ORIENT – Beginning of a large surge
• FBMKLCI – “Gap-filling” completed
• Obvious supports of 1,465 & 1,482
• 1,484 & 1,503 will cap the rebounds

Some trading stocks that we like are: AEONCR, AFG,
ARMADA, AXIATA, BSTEAD, CARLSBG, CBIP, CIMB,
GAMUDA, GENP, KFIMA, KPJ, LIONIND, LONBISC,
ORIENT, RSAWIT, TM and UEMLAND.

(Information from MBB)