MISC, Gamuda fall on FBMKLCI exit

MISC Bhd and Gamuda Bhd fell in Kuala Lumpur trading after being dropped from the benchmark FTSE Bursa Malaysia KLCI Index.

MISC, the world’s largest owner-operator of liquefied natural gas vessels, fell 1.7 percent to RM5.85 at 9:04 a.m. local time, set of its lowest close since Nov. 25.

Gamuda, a builder, lost 1.2 percent to RM3.24, set for its lowest close since Dec. 1. -- Bloomberg



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LFE Corp continues to be traded actively

KUALA LUMPUR (Dec 9): LFE CORPORATION BHD [] shares continued to be traded actively on Friday, a day after the company had replied to a Bursa Malaysia Securities query that there was no material corporate development relating to its business that may have accounted for the unusual market activity (UMA) involving its shares on Dec 7.

At 9.30am, LFE Corp was up 3.5 sen with 6.99 million shares done.

The company had on Thursday said the UMA on Dec 7 could have been caused by its announcement on Dec 6 of the acquisitions of 5.7 million and 6.1 million shares respectively by Liew Teow Woon and Liew Chee Woon respectively on Dec 1, 2011.

The company said Lew Mew Choi had informed it that he disposed the said shares to Teow Woon and Chee Woon.

“Lew Mew Choi has further informed that he will provide the Company with a duly executed Form 29C (Notice of Person Ceasing to be a Substantial Shareholder) soonest possible and thereafter, the company will make the relevant announcement accordingly.

“Save for the above, the board of LFE Corp is unaware of any rumour or report concerning the business and affairs of the group that may account for the unusual market activity,” it said.



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KLCI extends losses as global markets fall on European debt woes

KUALA LUMPUR (Dec 9): The FBM KLCI extended its losses in early trade on Friday, in line with the overnight slump at Wall Street and European markets on growing doubts that European leaders could forge a credible plan to solve the euro zone's debt crisis.

At 9.05am, the FBM KLCI lost 14.50 points to 1,458.42, weighed by losses at blue chip stocks.

Losers led gainers by 141 to 35, while 102 counters traded unchanged. Volume was 64.19 million shares valued at RM37.51 million.

Among the early decliners were BAT, Petronas Dagangan, KLK, HLFG, PPB, Genting, Petronas Gas, Hong Leong Bank, AirAsia and UMW.



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RHB Research maintains market perform on S P Setia, FV RM3.90

KUALA LUMPUR (Dec 9): RHB Research Institute said S P Setia’s FY11 results were within expectations.

It said on Friday the group’s property sales exceeded target by almost 10% to RM3.29 billion for FY11.

“We believe SP Setia’s sales target of RM4 billion for FY12 has already taken into account a 15%-25% decline in sales of existing projects (excluding Eco City).

RHB Research said however, given RM3 billion worth of new launches next year, S P Setia would still be able to achieve the target safely.

“Our fair value is kept at RM3.90 (that is Permodalan Nasional Bhd’s takeover offer price). Maintain Market Perform,” it said.



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CIMB Research has technical sell on RHB Cap at RM6.92

KUALA LUMPUR (Dec 9): CIMB Equities Research has a technical sell on RHB Capital at RM6.92 at which it is trading at a FY13 price-to-earnings of 7.5 times and price-to-book value of 1.4 times.

It said on Friday that respite numerous attempts, RHB Capital failed to swing above its resistance trend line.

“This shows that the bears are firmly in command. If we are right, prices would likely ease towards RM6.53 and RM6.25 over the next few days, if not weeks,” it said.

CIMB Research said as prices stay below its key moving averages, it doubted any rebound would be strong.

“MACD has staged a negative crossover while RSI is also dwindling towards the oversold territory. Near term outlook favours the bear.

“Use any rebound towards its 50-day and 30-day SMAs (now at RM7.25 and RM7.39 respectively) to unload on strength. Put a buy stop at RM7.12-RM7.40, just in case,” it said.



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HDBSVR sees selling pressure picking up on KLCI

KUALA LUMPUR (Dec 9): Hwang DBS Vickers Research expected regional markets to come under pressure on Friday after the overnight fall on Wall Street.

It said key U.S. stock indices lost between 1.6% and 2.1% at the closing bell amid news that no major progress is expected to be made by European leaders at an ongoing meeting to resolve the region’s sovereign debt woes.

“This could take a knock on sentiment across Asia as investors would probably want to sell before the European summit ends later today.

“Back home, the benchmark FBM KLCI may back off from the support-turned-resistance level of 1,475, possibly sliding towards the next support line of 1,445,” it said.

HDBSVR said counters that may be of interest on Friday include AirAsia, Bumi Armada and UEM Land, which are set to replace Gamuda, MISC and PLUS as the FBM KLCI component stocks.

“And hoping to buck the weak market trend is Kencana Petroleum, after it secured a contract worth RM1 billion to fabricate and assemble structures and components for a liquefied natural gas processing facility in Australia,” it said.



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CIMB Research has technical sell on London Biscuits at 86.5 sen

KUALA LUMPUR (Dec 9): CIMB Equities Research has a technical sell on London Biscuits at 86.5 sen at which it is trading at a price-to-book value of 0.4 times.

It said on Friday the previous day’s sharp fall formed a bearish marubozu pattern and we are worried about its near term outlook.

“If the candles continue to stay below its 200-day SMA, there is a high possibility that prices may plunge towards 82 sen and 77.5 sen.

“As the fall was accompanied by high volume, we doubt prices can bounce back strongly any time soon. Hence, selling into strength looks like a good option here, especially near the 87.5 sen and 90.5 sen resistance levels,” it said.

CIMB Research said the technical landscape is deteriorating, pointing out that the MACD histogram bars are falling at a fast pace while RSI has also hooked downward.



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CIMB Research has technical sell on WTK at RM1.17

KUALA LUMPUR (Dec 9): CIMB Equities Research has a technical sell on WTK Holdings at RM1.17 at which it is trading at a price-to-book value of 0.5 times.

It said on Friday WTK Holdings is still trapped in a downtrend channel. Despite numerous attempts, prices fail to push above the downward slopping resistance trend line. The 30-day and 50-day SMAs at RM1.32-1.28 respectively will also put a lid on the bulls.

“Indicators are showing signs of exhaustion. MACD signal line has slipped into the red while RSI is below the 50pts mark.

“We will continue to stick with the bear’s camp unless prices swing past the resistance trend line. Next supports are RM1.08 and RM1.03,” it said.



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