SP Setia (HOLD, TP: RM 4.12)

Initiate with a HOLD

'''' On track to achieve this year's RM3bn sales target and add to its RM3.46bn unbilled sales.

'''' Opening of Setia City Mall in May 2012 to stimulate sales for flagship Setia Alam and Eco Park projects.

'''' Regional expansion ' making good progress with Fulton Lane development in Australia.

'''' Positives: highly liquid proxy to property sector, strong product concepts and pipeline.'' Well diversified earnings base from 12 on-going projects'' plus another 15 in the pipeline.'' Consistent dividend payments.

'''' Negatives: Less than 10% upside; highest P/E multiple in the sector (1.9x sector average).

'''' Upside is less than 10% (inclusive of dividends) and is unattractive compared to undervalued small-cap developers such as YNH, UMLand and KSL (42%, 48% and 37% upside respectively).'' HOLD

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FBM KLCI - Technical rebound from oversold position

'''' Our envisaged supports of 1535 (50% FR) and 1530 (200-d SMA) are still well intact despite external selldown. Further key support is 1520 (61.8% FR).'' Given oversold position, divergence with RSI and the rebound from the lower Bollinger band, the market is likely to stage a technical rebound.

'''' However, as the candles are still trading below the 10-d and 50-d SMAs, the current correction/consolidation could be prolonged. Thus, the market is likely to drift sideways unless the resistance levels at 10-d and 50-d SMAs are broken

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Stock to watch - UEMLAND: More upside if 200-d SMA resistance is broken''

'''' Based on its hourly chart, there could be a technical rebound towards RM2.64-2.68 zones. However, for an uptrend to continue, UEMLAND has to breach the 200-d SMA (now at RM2.65) to begin a fresh rally towards the downtrend line resistance of RM2.80. Further upside targets are RM2.90-3.00.

'''' Immediate supports are RM2.45 (uptrend line support) and RM2.40 (76.4% FR). Cut loss below RM2.40.