Solid And Strong Performance

'''' 1QFY12/11 net profit (+11.4% qoq and +25.1% yoy) in line with HLIB and consensus.

'''' Results boosted by lower provisions with all business segments recorded higher earnings.

'''' Loans and deposits growth ahead of KPIs.

'''' Despite external headwinds, group is confident of meeting its KPIs.

'''' NIM pressure mostly from Indonesia.

'''' Credit charge likely higher at more sustainable level of 30bps over LT.''

'''' Asset quality ratios improved.'' Increase in absolute IL was from WOM with overall asset quality intact and maintainable.

'''' Exposure to EU and UK only 0.4% of total assets.

'''' Comfortable with current capital ratios and proforma BASEL III core equity ratio of circa 8%, unless BNM has more stringent ratio.

'''' Maintain BUY with unchanged target price of RM8.87.

''

KLCI: Learn to leave with volatility

'''' Given the headwinds in Europe, we have to learn to live with the volatility in the near term. Technically, daily trend and momentum indicators are weakening and are pointing to more consolidations. Immediate resistance levels remain at 100-d SMA (now at 1489) and 200-d SMA (1508). Supports are at 1452 pts (3 Nov intraday low) and 30-d SMA (1442 pts).

''

MHC Plantation: Upside bias on positive technical readings

'''' MHC broke out of its 200-d SMA (now at RM1.21) and 30-d SMA (RM1.17) levels recently. We see this as a prelude to more upside ahead amid improving weekly technical readings and rising CPO prices. Strong resistance zones are RM1.41-1.54. Supports are RM1.17-1.21. Cut loss below RM1.15.