Due to increase in commercial buildings and improvement in property market, insurance in this particular segment will increase especially fire insurance. Gross premium growth are expected to be between 15% to 20%
Maintain Outperform with a fair value of RM14.59
Corporate Highlights
1. Gamuda’s 1QFY07/10results to disappoint
Gamuda’s peers in construction has recorded sub-par margin and RHB Research expect Gamuda to miss their expectation as well. Though Gamuda recorded profits of RM65million to RM70million, it is still lower than their expectation by 50%.
Maintain Underperform with Fair Value of between RM2.34 to RM2.12
2. Sunway secure pilling and structure works in Johor Bahru worth RM23.4million
With this contract, Sunway has managed to increase its outstanding orderbook by 1% to RM2.51billion. This will earn them a nice profit before tax of between RM1.2million to RM1.6million over contract period of 6 months ending May 2010.
Maintain Outperform with Fair Value of RM1.63
Technical Highlights
1. Daily Trading Strategy
A further drop to below 10-day moving average of 1,270 could trigger further selling and an immediate rebound from the 10-day moving average is needed to preserve the recent recovery efforts. Otherwise, the benchmark may drift lower towards the 40-day moving average of 1,261 and the 1,250 level. A mild rebound in Wall Street plus the potential of window dressing may contain any near-term downside risk.
2. Daily Technical Watch: Tan Chong’s potential retest of November high of RM2.70 and RM2.80 hurdle
- 10-day moving average of RM2.396
- 40-day moving average of RM2.323
- Immediate support at RM2.17; thereafter at RM1.82
- Immediate Resistance at RM2.43; thereafter at RM2.80 and RM3.36
3. Weekly Trading Idea: IOI’s potential bullish breakout from RM5.45
It is a bargain buy near the 10-day moving average of RM5.395 in anticipation of a breakout rally soon.
- Immediate Resistance at RM5.45; thereafter at RM6.40 and RM7.20
- Immediate Support at RM4.85; thereafter at RM3.88 and RM2.96
- Exit with stop loss triggered upon losing the 40-day moving average of RM5.308
Source: RHB Invest
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