Stock Name: FABER
Company Name: FABER GROUP BHD
Stock Name: PREMIER
Company Name: PREMIER NALFIN BERHAD
Stock Name: QL
Company Name: QL RESOURCES BHD
Company Name: FABER GROUP BHD
| Research House: CIMB | Price Call: BUY | Target Price: 1.78 |
Stock Name: PREMIER
Company Name: PREMIER NALFIN BERHAD
| Research House: CIMB | Price Call: SELL | Target Price: 0.405 |
Stock Name: QL
Company Name: QL RESOURCES BHD
| Research House: CIMB | Price Call: BUY | Target Price: 3.28 |
What's Relevant
- US markets: US stocks had been higher for most of the session, buoyed by a strong weekly jobless claims report (4-year low) and as investors seemed to overlook weaker-than-expected manufacturing news (slowed down to 52.4), but still finished off their best levels.
- Asian markets: Asian shares closed mostly down on Thursday as a retreat in expectations for further monetary easing in Europe and the U.S. sent stock markets lower, while China's PMI remained weak at 51.0. Singapore shares closed weaker on Thursday following comments by Fed chairman Ben Bernanke that flat incomes and still-high unemployment would likely limit growth this year to 2.25%. Commodities are still under pressure. We maintain a bearish view on the index
- Malaysia: The FBMKLCI bucked the regional downtrend to end the day 0.2% higher. At the close, the benchmark rose 3.8pts to 1,573.45. Rotational buying in selected blue chips like Sime Darby, Petronas Chemicals and BAT helped cushion losses in the broader market. Lower liners were sold down on worries that the global retreat would hurt local sentiment. Volume was modest with 1.6bn shares worth RM2.0bn changed hands. Market breadth was negative with losers outnumbering advancers by 506 to 309 while another 302 counters remained unchanged.
Trades for the Day
Technically'
- Faber Group (FAB MK; RM1.78, Buy) ' Likely one more push higher.
- Premier Nalfin (PRNB MK; RM0.405, Sell) ' Violated its triangle support.
- QL Resources (QLG MK; RM3.28, Buy) ' Ripe for a stronger rebound.
Fundamentally'
- Strategy ' Light at the end of the tunnel? Disappointments during the Feb results season were milder than expected, with underachievers outnumbering overachievers by only a factor of 1.6x vs. at least 3x in the past two quarters. This is good news and raises the hope that big earnings cuts are coming to an end. We maintain our Neutral call but raise our end-2012 KLCI target from 1,520pts to 1,610pts after lifting our target basis from 12.6x P/E to 13x P/E as we lower the discount to the 3-year moving average P/E from 10% to 5% in light of the less negative earnings outlook.
