Petronas Chems upgraded, stock rises

Petronas Chemicals Group Bhd, the petrochemicals arm of Malaysia’s state oil company, rose the most in more than a week in Kuala Lumpur trading after the stock was upgraded to “outperform” with an increased so-called fair value of RM6.72 at RHB Capital Bhd.

Its shares gained 1.3 percent to RM6.08 at 9:15 a.m. local time, set for their biggest increase since Dec. 1. -- Bloomberg



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Proton climbs on stake sale report

Proton Holdings Bhd, Malaysia’s national carmaker, gained the most in a week in Kuala Lumpur trading after Business Times reported that Khazanah Nasional Bhd will sell its stake in the carmaker to DRB-Hicom Bhd.

The stock climbed 5 percent to RM4.19 at 9:03 a.m. local time, set for its steepest increase since Dec. 5.

DRB-Hicom rose 2.8 percent to RM2.18. -- Bloomberg



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SYF Res gains on Q1 profit turnaround

SYF Resources Bhd, a home-furnishings company, advanced to its highest level in a week in Kuala Lumpur trading after posting first-quarter net income of RM39.2 million, compared with a RM581,000 loss a year earlier.

The stock gained 1.4 percent to 70.5 sen at 9:09 a.m. local time, set for its highest close since Dec. 5. -- Bloomberg



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O&G-related counters advance, RHB Research upgrades sector to Overweight

KUALA LUMPUR (Dec 12): Stocks in the oil and gas industry advanced on Monday after RHB Research upgraded the sector to Overweight, given its positive long-term view of the industry.

At 9.35am, Petronas Gas rose 26 sen to RM14.10, MMHE eight sen to RM5.53, Petronas Chemicals seven sen to RM6.07, Kencana three sen to RM2.79, Wah Seong Corp one sen to RM1.93 and KNM half a sen to 99 sen.

RHB Research in a note Dec 12 said that the excess liquidity flows had resulted in crude oil prices holding up (vs. plunge in the 2008 global financial crisis).

This was despite the persistent global economic uncertainties, it said.

“We revise our average crude oil price assumptions to US$95/bbl for FY12 and US$99.8/bbl for FY13 (from US$80/bbl and US$89/bbl previously) and upgrade our benchmark sector PER to 15x (from 13x).

“We upgrade our call on the sector to Overweight, as we take into account the positive long-term view.

RHB Research said its top picks were Petronas Gas and Dialog, given their long-term fundamentals.

The research house said it was also positive on the the merger of SapuraCrest and Kencana as it would emerge as a formidable non-Petronas oil & gas company.



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OSK Retail Research: Emico may trade higher, support at 27 sen

KUALA LUMPUR (Dec 12): OSK Retail Research said Emico Holdings’ share price may trade higher after closing firmer last Friday.

It said on Monday the stock has been trending higher since spiking up in early November. After failing to break above the 45 sen resistance level, a correction phase has set in.

“But the stock appears to have found support at 27 sen, which held for the past eight days. That is also the 62% retracement level of the November surge. The second leg of rally may have resumed last Friday after the price closed at its highest in 10 days, above the psychological 30 sen.

OSK Research said the “Long White” candle formed on high volume suggests the conviction of buyers.

The research house said buying could be made above 27 sen, with a close below as a stop.

“As strong move could see it testing 55 sen, a measured move based on the November spike up, but two resistance levels stand in the way,” it said.

OSK Research said the first is 35 sen, the high of Nov 25, which is also the 38% retracement of the November surge, and followed by the November high of 40 sen.

A close below 27 sen will invalidate the trade, with a close below the Nov 22 low of 24 sen as the confirmation.

“If so, look for the stock to continue its long-term downtrend move,” it said.



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KL shares open higher

Share prices on Bursa Malaysia were traded higher in the early session Monday on technical rebound, dealers said.

Thirty minutes after the opening bell, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 11 points or 0.7 per cent to 1,471.13.

Dealers said the uptrend was in tandem with the Wall Street which recovered on Friday when its key stock indices jumped between 1.6 per cent and 1.9 per cent at the closing bell.

This followed a pact reached by the European countries for deeper economic integration and a proposal to increase the rescue fund size, HwangDBS Vickers said in a research note.

The Finance Index rose 109.45 points to 13,050.34; the Plantation Index surged 67.76 points to 7,928.45 and the Industrial Index perked 15.7 points to 2,665.66.

The FBM Emas Index was up 68.99 points to 10,068.54, the FBM Mid 70 Index jumped 62.22 points to 10,977.93 and the FBM ACE Index advanced 32.93 points to 4,207.38.

Gainers led losers by 251 to 54 while 146 counters were unchanged. Turnover stood at 223.92 lots worth RM97.75 million.

Actives, Utopia-Wa earned one sen to six sen, Proton CG added two sen to 33 sen and Emico gained one sen to 32 sen.

For heavyweights, Maybank rose two sen to RM8.17, CIMB added nine sen to RM6.98 but Sime Darby lost one sen to RM8.89. -- Bernama



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KLCI snaps losing streak as Asian markets rise

KUALA LUMPUR (Dec 12): The FBM KLCI snapped its losing streak and rose in early trade on Monday, in line with the gains at key regional markets after European policymakers took a step closer to fiscal union over the weekend.

At 9.05am, the FBM KLCI rose 5.69 points to 1,465.82.

Gainers led losers by 144 to 22, while 88 counters traded unchanged. Volume was 57.56 million shares valued at RM31.05 million.

Among the early gainers were Proton, Lafarge Malayan Cement, Toyo Ink, Nestle, AirAsia, CIMB, Genting, MAHB, Petronas Chemicals and Bumi Armada.



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OSK Retail Research: SYF Resources may trade lower

KUALA LUMPUR (Dec 12): OSK Retail Research said SYF Resources’ share price may trade lower after failing to break above resistance level.

In its technical outlook on Monday, it said the stock has been trending higher since early October and it was quite natural for a correction to set in, especially after the price failed to violate the psychological RM1.

“The second leg of rally started again in December and a continuation appears to be on the cards after the price found support at 60 sen last Wednesday. However, the stock again failed to close above the resistance level of 72 sen, the high of Nov 10. It formed a “Shooting Star”, which denotes a bearish outlook.

“However, weakness is only confirmed by a close below the “Shooting Star” low of 68 sen. As such, positions can be liquidated on a close below that level,” it said.

OSK Research said a speculative sell may even exit on rebound towards Friday’s high of 75 sen and a close below 60 sen will completely erase the upward bias. However, the rebound from last Wednesday’s low may continue if the price manages to close above 68 sen for the next couple of days.

The research house said a close back above 72 sen should confirm the return of buying and thereafter, look for the retest of RM1.



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