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)