Property Sector:

Budget Relief

'''' The Property Index suffered a 25% decline during the latest sell-down. We believe the sell-down has been overdone on fears of RPGT, NPL ratios and hard landing in property prices.''

'''' The RPGT issue has been clarified under Budget 2012, while asset quality and property prices should hold up relatively well.

'''' Given the still-fluid external environment, we have trimmed out target prices by 25-38%, but retain our positive long-term outlook on the sector.''

'''' Mah Sing (BUY, TP: RM2.05) is now our top pick as its offers a good combination of liquidity and attractive valuations (11x P/E and 36% discount to RNAV).''

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Stay vigilant

'''' After violating the 1411 (downtrend line resistance from 1511) to close at 1444.9 yesterday, (at the second downtrend line), a more formidable resistance is at 1447 (50-d SMA). Meanwhile, supports are near 1414 (30-d SMA) and 1400 psychological levels.

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HAPSENG: To retest RM1.48-1.68 following a bullish breakout''

'''' Amid promising technical landscapes, HS looks set to surpass its immediate resistance at RM1.46 (weekly or mid Bollinger band) after surpassing the daily downtrend line resistance near RM1.32 (or mid Bollinger band) recently. Further upside targets are RM1.58 (50% FR) and RM1.68 (200-d SMA). Supports are RM1.25-1.32. Cut loss below RM1.25.