Maybank IB Research

PP16832/04/2011 (029339)

TECHNICALS
Technicals
15-Feb % Chg YTD Daily Net Chg (pts) Value Equity Markets Malaysia FTBM KLCI (0.9) FTBM Emas 0.5 FTBM Ace 4.4 Regional Singapore STI (3.4) Thailand SET (6.2) Indonesia JCI (7.7) Shanghai CI 3.2 Japan Nikkei 225 5.1 HK Hang Seng (0.6) S Korea KOSPI (2.0) Taiwan TAIEX (2.8) United States DJIA 5.6 Nasdaq 5.7 Commodities/Currency WTI Nymex (7.7) Gold Futures (3.4) USD/MYR (0.5) SGD/MYR (0.3) USD/JPY 2.7 Euro/US$ 1.2 CPOF 3.8 Soy Bean (1.9) Baltic Dry (30.3) Bursa Malaysia Volume (m units) Value (RM m) Share Price (RM) Gainers 546 Daily Top Volume

16 February 2011

The local market is still not stable

Market Review
The FBM KLCI rose 10.81 points to 1,505.33 on Monday as some local bargain hunting activities emerged. The FBM 100 also gained by 76.24 points and the FBM EMAS tagged on 76.50 points. Market breadth was positive, as the gainer-to-loser ratio was 546 to 268 while 285 counters were unchanged. Market volume traded was 1.98b shares - valued at RM1.87b.

0.7 0.7 0.7 (0.8) 0.1 0.0 0.2 (1.0) (0.2) 0.4 (0.3) (0.5) (0.6) 0.9 (0.1) (0.0) 0.2 0.5 (0.6) (2.2) 2.5 2/11/2011 1,987.0 1,866.0 0.94 Losers 268 2/14/2011 (RM) 0.24 0.24 0.87 0.17 0.22 2/11/2011 13.14 15.22 25.60 6.50 4.47 2/11/2011 16.36 0.68 3.25 2.54 3.62

10.8 76.5 33.1 (23.8) 1.4 0.1 21.1 (221.3) (4.1) 36.5 (41.6) (12.8) (0.5) 12.1 (0.0) (0.0) 0.2 0.0 (22.0) (1.3) 30.0 2/14/2011 1,978.4 1,865.8 0.94

1,505.33 10,429.31 4,539.22 3,080.66 968.49 3,416.77 2,899.24 10,746.67 22,899.78 2,010.52 8,721.93 12,226.64 2,804.35 84.32 1,373.70 3.05 2.38 83.53 1.35 3,933.00 57.60 1,236.00 % Chg (0.4) (0.0) 0.4 Unchg 285 Vol (m) 6,475.8 6,397.8 6,236.0 6,080.9 4,895.5 Net Chg 0.56 0.40 0.30 0.19 0.19 Net Chg -0.14 -0.12 -0.12 -0.11 -0.10

Regional Markets
Japanese stocks traded marginally higher but US and Australian shares fell after commodity prices declined and reports showed that retail sales in the US increased less than expected in January.

US Markets
US stocks ended marginally lower last night as the flat American retail sales figure and selling in energy and basic materials stocks led to the lower tone. The Dow lost 0.34% or 41.55 points to 12,226.64, the SP500 declined 0.32% or 4.31 points to 1,328.01 and the NASDAQ fell 0.46% or 12.83 points to 2,804.35. Crude oil rose by USD0.49 and closed at USD84.32.

Daily Technical Outlook

The FBM KLCI rose 10.81 points to 1,505.33 on Monday. Its resistance areas of 1,505 and 1,541 will cap market gains, whilst the weaker support areas are located at 1,474 and 1,500. The FBM KLCI has temporarily stalled at its new all-time high of 1,576.95 on 6 January 2011. Since then, the index had moved into a new 2011 low of 1,490.44 recently. We anticipate the index to remain volatile in the short term and bearish in the medium term. As a result, very short-term trading is the key to the markets. We suggest clients liquidate on rallies and remain more in cash (or in price defensive counters). Obvious foreign selling in the Asia-Pacific region is due to hedge fund carry-trade unwinding. Also, foreign funds that have made money here in the region have been repatriating funds to Europe and USA since late last year. Due to the lower US markets last night, we may see the FBM KLCI in a softer posture today. Some stocks to sell on rallies and avoid are: AIRASIA, AMMB, BKAWAN, BURSA, CIMB, COCOLND, DLADY, GAB, GAMUDA, GENM, GENP, GENTING, GUANCHG, IOICORP, KENCANA, LITRAK, MEGB, MMCCORP, PBBANK, PBBANK-01, PETGAS, POS, PPB, RHBCAP, SUPERMX, TWSPLNT, UTDPLT, WCT and YTL.

KARAMBUNAI CORP FRONTKEN CORP HO WAH GENTING JOTECH HLDGS BHD IRIS CORP BHD Gainers KULIM MALAYSIA FRASER & NEAVE DIGI.COM BHD JT INTERNATIONAL CYCLE & CARR BIN Losers DUTCH LADY MILK CENTRAL IND BHD TRADEWINDS PLANT COCOALAND HOLDIN LINGKARAN TRANS

Chg (%) 0.00 0.15 0.03 0.18 0.02 2/14/2011 13.70 15.62 25.90 6.69 4.66 2/14/2011 16.22 0.56 3.13 2.43 3.52

FBM KLCI Line Chart

FBM KLCI: Key Points RHBCAP Sell this stock on rallies FBM KLCI Further intra-day volatility Weaker supports are at 1,474 & 1,500 1,505 & 1,541 resistance levels will cap Lee Cheng Hooi chenghooi.lee@maybank-ib.com (603) 2297 8694

Technicals

FBM KLCI Daily Chart

TECHNICALS
52 Week High 52 Week Low Support S1/S2 Resistance R1/R2 Downside Target T1/T2 Stop-loss Correction Period : : : : : : : 1,576.95 1,243.86 1,474 & 1,500 1,505 & 1,541 1,424 & 1,456 NA 2 days to 1 month Strategy CCI DMI MACD Oscillator RSI Stochastic Trend : : : : : : : : SELL ON RALLIES Negative Negative Negative Negative Neutral (39) Negative Down

MARKET ROUNDUP The FBM KLCI rebounded 10.81 points to close at 1,505.33 on Monday. The stocks that led the index up were TENAGA, IOICORP, CIMB, and GENTING. Technical Viewpoint: The FBM KLCIs key swings are 936.63 (Wave 4A high) and 836.51 (Wave 4B low). Its extended Flat uptrend Wave 4C move stalled at 1,349.92 (4 May 2010, high). An A-B-C-correction then unfolded and we moved up on extended Flat Wave 5-move that stalled at 1,576.95 on 6 January 2011. All its technical indicators are negative and Mondays rebound price action does not augur well for the FBM KLCI in the medium term. We suggest clients liquidate on rallies and remain more in cash (or in price defensive counters). Obvious foreign selling in the Asia-Pacific region is due to hedge fund carry-trade unwinding. Also, foreign funds that have made money here in the region have been repatriating funds to Europe and USA since late last year. As a result of this, the FBM KLCI and regional indices would be lower, and regional currencies will remain weaker against the USD. Investors should remain very cautious in the next month until the downward volatility subsides. KLCI Futures reading: The February contract moved into a small 1.17-points premium to the FBM KLCI. Traders will trade the KLCIF today with a Sell on Rallies bias. The weaker support areas are at 1,481.0 and 1,505.0, and investors will liquidate at the 1,507.0 and 1,540.0 resistance areas.

16 February 2011 Page 2 of 5

Technicals

Daily Trading Idea RHBCAP RM8.01

(Stock Code: 1066) (Bloomberg Code: RHBC MK Equity)

TAKE PROFIT (TECHNICAL)

RHB Capital Berhad (RHBCAP) provides commercial and investment banking services. Through its subsidiaries, the company provides finance and leasing services, invests in properties, and trades securities. It also provides nominee, unit trust, asset management, and insurance services. FUNDAMENTALS
Board / Sector Par Value Market Cap. 52 Week High 52 Week Low Book Value / Share Beta vs. KLCI Dividend/share Historical EPS Historical P/E Historical Ind. P/E Historical Net Profit Avg. Daily 3-mth Vol. : : : : : : : : : : : : : Finance RM 1.00 RM17.2b RM8.76 RM5.23 RM4.48 0.98 RM0.23 63.9sen 12.6x 16.3x RM1.38b 3.48m shares

TECHNICALS
CCI DMI MACD Oscillator RSI Stochastic Support S1/S2 Resistance R1/R2 Trend Downside target T1/T2 Stop-loss Period : : : : : : : : : : : : Negative Negative Negative Negative Oversold (30) Negative RM7.70 & 7.97 RM8.01 & 8.76 Down RM7.70 & 7.97 NA 2 days to 1 month

Recommendation RHBCAP made a daily Wave 5 high of RM8.76 in mid-January 2011, with grossly overbought and bearish divergent signals. With the negative crossovers from the CCI, DMI, MACD, Stochastic and Oscillator indicators, we feel that RHBCAP will see further lower movements and eventually test our downside target areas. TAKE PROFIT (TECHNICAL) on dips for RHBCAP with its very weak support and target areas of RM7.70 and RM7.97. Sell at its very firm resistance areas of RM8.01 and RM 8.76.

16 February 2011 Page 3 of 5

Technicals

Daily Trading Idea Summary Table

Stocks recommended Target (RM) Date Recom. 11-Feb-11 10-Feb-11 09-Feb-11 09-Feb-11 08-Feb-11 21-Jan-11 18-Jan-11 18-Jan-11 14-Jan-11 13-Jan-11 Bloomberg Ticker GENT MK CBS MK DEHB MK BOUS MK MHB MK FAB MK BOUS MK MSW MK THR MK PNL MK Stock Code 3182 0041 5141 2771 9571 1368 2771 5098 5010 6866 Technical Call Take Profit Accumulate ST Buy Accumulate ST Buy Take Profit ST Buy Accumulate Firm Buy Firm Buy Recom. Price (RM) 10.20 0.45 2.30 6.03 2.07 2.10 5.87 1.41 2.86 2.86 Last Price (RM) 10.16 0.44 2.21 5.75 1.97 2.06 5.75 1.28 2.70 2.81 StopLoss (RM) NA 0.36 1.77 0.73 1.78 NA 5.35 1.17 2.58 2.57

Company GENTING CBSTECH DAYANG BSTEAD MITRA FABER BSTEAD MASTEEL TONGHER BERNAS

T1 9.77 0.50 2.48 6.65 2.26 1.67 6.25 1.46 3.52 3.50

T2 9.25 0.55 2.70 6.96 2.69 1.87 6.67 1.59 3.83 4.02

Comments Sell 10.16 10.90 Buy 0.38 0.44 Buy 1.80 2.21 Buy 5.09 5.75 Buy 1.80 1.97 Sell 2.06 2.60 Buy 5.37 - 5.75 Buy 1.19 - 1.28 Buy 2.60 - 2.70 Buy 2.59 - 2.81

Stocks Hit T1/T2 or Stop loss Target (RM) Date Triggered 13-Jan-11 12-Jan-11 25-Jan-11 08-Feb-11 19-Jan-11 08-Feb-11 27-Jan-11 26-Jan-11 26-Jan-11 18-Jan-11 18-Jan-11 12-Jan-11 10-Jan-11 05-Jan-11 10-Jan-11 06-Jan-11 05-Jan-11 Bloomberg Ticker DLUM THP MK PEP MK CHH MK T MK DLG MK GENT MK GAM MK GUIN MK SPSB MK HAPL MK SCRES MK HAP MK SPSB MK MKH MK CBP MK DLG MK Stock Code 5132 5112 4065 5738 4863 7277 3182 4065 3255 8664 5138 8575 3034 8664 6114 7076 7277 Technical Call ST Buy ST Buy Take Profit Accumulate ST Buy ST Buy Take Profit Take Profit ST Buy Accumulate ST Buy Accumulate ST Buy ST Buy ST Buy ST Buy ST Buy Recom. Price (RM) 1.85 2.18 17.08 1.06 3.77 2.09 10.92 3.77 10.52 6.93 3.53 3.45 7.36 6.30 1.79 4.20 1.92 Closed out Price (RM) 1.65 1.96 16.32 1.05 3.88 2.21 10.90 3.80 9.58 6.41 3.32 3.61 6.16 6.50 1.97 4.40 2.17 StopLoss (RM) 13-Jan-11 12-Jan-11 25-Jan-11 08-Feb-11 19-Jan-11 08-Feb-11 27-Jan-11 26-Jan-11 26-Jan-11 18-Jan-11 18-Jan-11 12-Jan-11 10-Jan-11 05-Jan-11 10-Jan-11 06-Jan-11 05-Jan-11

Company DELEUM THPLANT PPB CHHB TM DIALOG GENTING GAMUDA GAB SPSETIA HSPLANT SAPCRES HAPSENG SPSETIA METROK CBIP DIALOG

T1 2.00 2.34 16.28 1.22 3.98 2.20 9.96 3.71 11.05 8.15 3.81 3.85 7.80 6.70 1.97 4.40 2.08

T2 2.20 2.36 16.72 1.64 4.16 2.73 10.82 3.46 12.00 9.40 4.18 4.05 9.28 7.13 2.01 4.60 2.31

Comments EXPIRED EXPIRED Took Profit @ T1 Took Profit @ T1 Took Profit @ T1 Took Profit @ T1 Took Profit @ T1 Took Profit @ T1 Stop Loss Stop Loss Stop Loss Took Profit @ T1 Stop Loss Took Profit @ T1 Took Profit @ T1 Took Profit @ T1 Took Profit @ T1

16 February 2011 Page 4 of 5

Technicals Definition of Technical Ratings

Maybank Investment Bank Research uses the following technical rating system: FIRM BUY (TECHNICAL) Total return is expected to exceed 20% in the next 2 months. ACCUMULATE (TECHNICAL) Total return is expected to be above 10% in the next 1 month. STRONG SELL (TECHNICAL) Total return is expected to drop below 20% in the next 2 months. TAKE PROFIT (TECHNICAL) Total return is expected to drop below 10% in the next 1 month. SHORT-TERM BUY (TECHNICAL) Total return is expected to be between 5-10% in the next 1 month. However, the upside may or may not be sustainable.

Applicability of Technical Ratings

Technical ratings are purely based on price and volume-related indicators extracted from Bursa Malaysia Securities Berhad, explained in the Glossary below. Featured securities are selected as and when their technical indicators appear convincing for an investment action. Maybank Investment Bank Bhd expressly disclaims any obligation to update or revise its Technical Ratings to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events.

Glossary of key technical terms

COMMODITY CHANNEL INDEX (CCI) DIRECTIONAL MOVEMENT INDEX (DMI) MOVING AVERAGE CONVERGENCE DIVERGENCE (MACD) OSCILLATOR An oscillator used in technical analysis to help determine when an investment vehicle has been overbought and oversold. It quantifies the relationship between the asset's price, a moving average (MA) of the asset's price, and normal deviations (D) from that average. An indicator for identifying when a definable trend is present in an instrument, i.e. the DMI tells whether an instrument is trending or not. A trend lagging momentum indicator that shows the relationship between two moving averages of prices. A signal line is also plotted on top of the MACD to function as a trigger for buy and sell signals. A technical analysis tool that is banded between two extreme values and built with the results from a trend indicator for discovering short-term overbought or oversold conditions. As the oscillator approaches the upper extreme value the stock is overbought, while in the lower extreme it is oversold. A technical momentum indicator that compares the magnitude of recent losses to determine overbought and oversold conditions of the stock. The stock is overbought (overvalued) once the RSI approaches the 80-level. Meanwhile, the stock is oversold (undervalued) as the RSI approaches the 20-level. A technical momentum indicator that compares a securitys closing price to its price range over a given time period. The stock is overbought when the indicator is above 80 and oversold when it is below 20.

RELATIVE STRCMSBTH INDEX (RSI) STOCHASTIC Source: Investopedia.com

Disclaimer
This report is for information purposes only and under no circumstances is it to be considered or intended as an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that income from such securities, if any, may fluctuate an d that each securitys price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volumerelated information extracted from Bursa Malaysia Securities Berhad in the equity analysis. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. This report is not intended to provid e personal investment advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report. The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank Investment Bank Berhad and consequently no representation is made as to the accuracy or completeness of this report by Maybank Investment Bank Berhad and it should not be relied upon as such. Accordingly, no liability can be accepted for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this report. Maybank Investment Bank Berhad, its affiliates and related companies and their officers, directors, associates, connected parties and/or employees may from time to time have positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other servic es for or relating to those companies. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice. This report may contain forward looking statements which are often but not always identified by th e use of words such as anticipate, believe, estimate, intend, plan, expect, forecast, predict and project and statements that an event or result may, will, can, should, could or might occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ ma terially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-looking statements. Maybank Investment Bank Berhad expressly disclaims any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events. This report is prepared for the use of Maybank Investment Bank Berhads clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of Maybank Investment Bank Berhad and Maybank Investment Bank Berhad accepts no liability whatsoever for the actions of third parties in this respect. This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Published / Printed by

Maybank Investment Bank Berhad (15938-H) (A Participating Organisation of Bursa Malaysia Securities Berhad) 33rd Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur Tel: (603) 2059 1888; Fax: (603) 2078 4194 Stockbroking Business: Level 8, Tower C, Dataran Maybank, No.1, Jalan Maarof, 59000 Kuala Lumpur. Tel: (603) 2297 8888; Fax: (603) 2282 5136 http://www.maybank-ib.com

Technicals 16 February 2011

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