Broker's Call - Mon, 04 January 2010: ".
Happy 2010 to all my readers.. Enjoy trading ^^ Cheerssssss...

– KLCI Index Futures – Likely to track the cash market.
– Crude oil futures – Momentum is slowly picking up.
– CPO futures – On firmer ground.
– Malayan Banking (MAY MK; RM6.86, BUY) – Building a base-platform for the next upleg.
– Public Bank (PBK MK; RM11.30, BUY) – Long-term uptrend remains intact.
– AMMB Holdings (AMM MK; RM5.00, BUY) – Selling pressure has tapered off.
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Malayan Banking (MAY MK; RM6.86) – BUY
FY10P/E: 15.9x, P/BV: 1.9x

• Maybank gyrated near its 30- and 50-day SMAs over the past days. It is trying to build a base-platform for the next upleg. As long as the trend line support (currently at RM6.70) holds firm, the broker believes the bulls have a slight upper hand over the bears.
• Despite recent sideways consolidation, MACD suggests that momentum is slowly picking up. Its signal line has staged a positive hook-up. Meanwhile, RSI is hovering above the 50-neutral zone.
• On the upside, its 17th Nov’s high of RM7.08 is the first target, followed by RM7.27 and RM7.54. Cut losses if it falls below RM6.61.

Malayan Banking provides commercial and Islamic banking services in Malaysia, Singapore, and other locations. Through its subsidiaries, the Company provides services such as general and life insurance, stock and futures broking, and leasing and factoring. Maybank also has operation in
discount house, unit management, property investment, and venture capital.
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Public Bank (PBK MK; RM11.30) – BUY
FY10P/E: 14.0x, P/BV: 3.8x

• Public Bank ended the year on a strong footing, closing at its year-high of RM11.30 on 31st Dec. The stock is moving in a long-term uptrend channel and its 50-day SMA has proven to be a strong support.
• Investors can hope for another run-up towards its next resistance at RM11.70 over the medium-term and possibly even RM12.30. For those who missed the boat in 2009, buying near its key SMAs would be a wise choice.
• MACD has just hooked up but RSI is now overbought at 86. Therefore, the brokers prefers to buy on weakness. The uptrend would be infringed if the RM10.64 support trend line is violated.

Public Bank provides a range of banking and financial services which include leasing and factoring, stock and futures broking, financing for the purchase of licensed public vehicles, and other financial services. The Group's overseas operations include branches in Hong Kong, Sri Lanka, Laos, Cambodia, Vietnam, and Myanmar.
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AMMB Holdings (AMM MK; RM5.00) – BUY
FY10P/E: 15.3x, P/BV: 1.7x

• Selling pressure has tapered off after bouts of profit-taking activities. This is evidenced from its price pattern, which has moved above the 30-day SMA. A white candle today would likely suggest that an upleg is in place. Resistance is seen at RM5.32, RM5.48 and RM5.90.
• MACD is starting to rise further away from the zero levels but trading could be volatile as the recovery phase is still in the early stage.
• Risk takers can buy now but always keep stop at the 50-day SMA. A break below this support would be bearish as next downside target is at RM4.75 and RM4.40.

AMMB Holdings is an investment holding company. The Company, through its subsidiaries, provides merchant and commercial banking, retail financing, stock and futures broking, and investment advisory. AMMB also underwrites general insurance, provides asset and unit trust management, and nominees services.
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