PP 7767/09/2010(025354)

RHB Research
Malaysia Technical Research Institute Sdn Bhd
A member of the
RHB Banking Group
Company No: 233327 -M

Da ily T rad ing S trat egy

29 March 2010
MARKET DATELINE

Market Technical Reading

Revisiting The Recent High Of 1,334.34 Soon...

Chart 1: KLCI Daily Chart 2: KLCI Intraday

Local Market Leads:

♦ The FBM KLCI traded narrowly within a 3-point range on Friday, fluctuating between an intraday low of 1,313.06
and an intraday high of 1,315.14. The index ended the week at its highest point in two weeks.

♦ While the index gained marginally, the lower liners rallied on strong speculative interests, ahead of this Tuesday’s
Invest Malaysia conference. The Prime Minister Najib is expected to announce further liberalisation plans in his
New Economic Model at the conference.

♦ Stocks like UEMLand (11sen), DRBHcom (15sen), and Proton (26sen) gained, while recent gainers like the oil and
gas and technology related stocks retreated on swift profi-taking activities.

♦ As a result, the FBM KLCI inched up 2.66 pts or 0.2% for the day.

♦ Daily turnover stayed almost flat with 1,25bn shares changing hands. Market breadth stayed positive, with 517
gainers versus 238 losers.

Technical Interpretations:

♦ With the gain, the benchmark FBM KLCI registered its fourth positive day with three positive candles. This
indicates a likely follow-through buying momentum today.

♦ The gain also marked a third day that the index closed at above the 10-day SMA near 1,303. When the index
traded at above the 10-day SMA, the short-term trading sentiment is view as positive.

♦ In addition, both the stochastic oscillators and 14-day RSI continued to climb higher. The former has moved into
the “overboughtr” region due to the recent strength.

♦ Technically, it is poised to revisit the recent high of 1,334.34 in the near term.

♦ Its medium-term outlook remains bullish as it stays at above the 10-day SMA and the 1,300 level. Its next
medium-term upside target is at 1,390.

Please read important disclosures at the end of this report.

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 29 March 2010

Daily Trading Strategy:

♦ The constant bargain-hunting activities and healthy rotational interests of late have indicated a strong turnaround
on the short-term trading sentiment.

♦ Given a daily trading volume of around 1.2bn shares in late last week, trading activities are expected to continue
in the near term.

♦ Added to the positive readings on the technical layout, we expect investors to increase their buying acitivities this
week, on optimism ahead of tomorrow’s Invest Malaysia conference, to be launched by the PM Najib.

♦ On strong follow-through momentum, the FBM KLCI may reach the recent high of 1,334.34, before extending its
uptrend towards the 1,390 medium-term upside target.

♦ All said, the index must sustain at above the 10-day SMA of 1,303 and the psychological support level of 1,300,
to maintain the current upbeat momentum, failing so will reinvite the negative selling momentum.

Table 2 : Major Indices & Commodities

Table 1 : Daily Statistics Change Change
Scoreboard 22 Mar 23 Mar 24 Mar 25 Mar 26 Mar Local Key Indices Closing
(Pts) (%)
Gainers 301 447 453 461 517 FBM KLCI 1,315.14 2.66 0.2
Losers 364 253 255 303 238 FBM 100 8,644.64 29.35 0.3
Unchanged 280 278 295 247 261 FBM ACE 4,212.50 0.81 0.0
Untraded 403 371 346 336 330
Major Overseas
Market Cap Indices
Turnover Dow Jones 10,850.36 9.15 0.1
(mln shares) 675 908 1,136 1,244 1,251 Nasdaq 2,395.13 -2.28 -0.1
Value (RM S&P 500 1,166.59 0.86 0.1
mln) 1,254 1,488 1,689 1,846 1,706 FTSE 5,703.02 -24.63 -0.4
Hang Seng 21,053.11 274.56 1.3
Currency Jakarta Composite 2,813.08 13.93 0.5
MYR vs US Nikkei 225 10,996.37 167.52 1.5
Dollar 3.3170 3.3170 3.3155 3.3180 3.3050 Seoul Composite 1,697.72 9.33 0.6
Shanghai Composite 3,059.72 40.54 1.3
Source: RHBInvest & Bloomberg SET 778.86 -5.52 -0.7
FT Straits Times 2,906.28 17.91 0.6
Taiwan Weighted 7,876.86 38.76 0.5
India Sensex 17,644.76 85.91 0.5
Major Commodities
NYMEX Crude Oil
(US$/barrel) 80.15 -0.38 -0.5
MDEX CPO – Third
Month (RM/metric ton) 2,534.00 -41.00 -1.6
US Interest Rate Current Last Updated
Overnight Fed Fund 16 Mar
0-0.25% Unch
Rate 2010
Next FOMC meeting 27-28 Apr 2010

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 29 March 2010

Chart 3: FKLI Daily Chart 4: FKLI Intraday

Technical Interpretations:

♦ Despite a cautious morning trading, the local futures index managed to resume its upbeat buying momentum on
Friday, surging to a more than two-week high of 1,322, before closing the week at 1,321.0.

♦ The FKLI for Mar contract ended with its fourth positive candle in five trading sessions, suggesting a likelihood of
follow-through buying momentum this week. The Apr contract gained 3.5pts to 1,321.50.

♦ Although the stochastic oscillators cloesd flat on Friday in the “overbought” region, indicating a potential mild
selling activities today, the constant closing at above the 10-day SMA of 1,307 implies a sustained short-term
buying momentum ahead.

♦ Like the cash index, the FKLI will likely retest the recent high of 1,337, before heading towards its medium-term
target of 1,390.

♦ On the downside, so long as the futures index can sustain at above the 10-day SMA and the 1,300 psychological
support, the short- and medium-term outlook on the FKLI will remain positive.

♦ As such, we expect more buying support in the near term.

Daily Trading Strategy:

♦ With Friday’s positive candle on the chart, the FKLI is poised to extend its upward momentum today.

♦ Traders should maintain their “long” position, with a target of 1,337, but they must quickly cut loss if the futures
index unexpectedly falls to below the 10-day SMA and 1,300.

♦ Today’s trading range for the FKLI should range between 1,318 and 1,330.

Table 3: FKLI Closings

FKLI (Month)
Contracts Open High Low Close Chg (Pts) Settle Volume Open Interest
Mar 10 1315.00 1322.00 1313.00 1321.00 3.50 1321.00 7334 19084
Apr 10 1314.50 1322.50 1312.50 1321.50 3.50 1322.50 5954 3599
Jun 10 1312.50 1321.00 1312.00 1321.00 4.00 1320.50 95 510
Sep 10 1312.00 1320.00 1312.00 1320.00 3.00 1319.50 43 224

Source: Bursa Malaysia

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Chart 5: US Dow Jones Industrial Average (DJIA) Daily Chart 6: US Nasdaq Composite Daily

US Market Leads:

♦ US stocks closed mixed on Friday, amid uncertainties on Greece’s bailout package and mixed economic readings
on Friday.

♦ The European leaders have finally agreed on a bailout plan for Greece and other debt-plagued Euro zone
economies, but earlier, a report showed that Greece’s economy grew weaker than expected in the 4Q 2009.

♦ The 4Q 2009 GDP was revised lower to 5.6% annual rate on Friday from the previously reported 5.9%, while the
University of Michigan's consumer sentiment rose to 73.6 in Mar from 72.5 in Feb. Economists had expected a
rise to 73, on average.

♦ In the currencies markets, the Euro rebounded against the US$ slightly following the announcement on the
bailout plan to Greece.

♦ The US light sweet crude oil futures for May delivery fell 53 cents to US$80/barrel on the Nymex.

Technical Interpretations:

Dow Jones Industrial Average (DJIA)

♦ The US DJIA struggled on Friday, before ending the day on the dot of our important resistance level of 10,850,
gaining 9.15pts or 0.08% to 10,850.36.

♦ As it registered a “doji-like” candle, following last Thursday’s “shooting star” candle, the odds are on the negative
side today. Chances are that it may struggle to cling closer to 10,850 at best.

♦ Given a further slide on the stochastic oscillators from the “overbought” region, the index may kick off a
downswing if it loses 10,850 soon.

♦ A mild support can be expected near the 21-day SMA of 10,629, but a solid level is only at 10,150.

Nasdaq Composite (Nasdaq)

♦ The Nasdaq Composite Index fell 2.28pts or 0.1% to 2,395.13, registering its third negative candle in a row,
suggesting a likelihood of continuous selling ahead.

♦ Added to the downbeat negative signals on the momentum indicators, the index may ease to retest the 21-day
SMA near 2,350, before revisiting the resistance-turn-support level of 2,330.

♦ Resistances can be seen at last week’s high at 2,432.25 and the technical hurdle at 2,470.

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Daily Technical Watch:
Chart 7: Mulpha Daily Chart 8: Mulpha Intraday

Mulpha International (3905)

Could extend its two-day rally soon…

♦ After hitting a multi-year low near RM0.25 in Mar 2009, the share price of Mulpha rolled out a recovery trend,
surpassing the RM0.27 level to kick-start an uptrend.

♦ The stock’s upward momentum disappeared after touching an intraday high of RM0.62 in Jun 2009, prompting a
retreat to below the RM0.52 important level.

♦ Following a failure to reclaim the RM0.52 level in Aug 2009, the stock began to move sideways, congesting
mostly between RM0.40 and RM0.48 region for the past few months.

♦ In late last week, the stock registered two consecutive bullish candles on the chart, suggesting a possible further
upside momentum this week.

♦ Coupled with the positive surge on the momentum indicators and the uptick on the 10-day SMA near RM0.443,
above the 40-day SMA of RM0.44, the stock could extend its two-day rally to the previous range resistance of
RM0.48 soon.

♦ Upon the removal of RM0.48, it will head higher to the RM0.52 tough resistance level.

♦ Its momentum will disappear if it dips to below the 10-day and 40-day SMAs. And the outlook will turn bearish if
it loses RM0.395.

Technical Readings:

♦ 10-day SMA: RM0.443

♦ 40-day SMA: RM0.4398

♦ Support: IS = RM0.395 S1 = RM0.27

♦ Resistance: IR = RM0.52 R1 = RM0.66 R2 = RM0.885

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IMPORTANT DISCLOSURES

This report has been prepared by RHB Research Institute Sdn Bhd (RHBRI) and is for private circulation only to clients of RHBRI and RHB Investment Bank Berhad
(previously known as RHB Sakura Merchant Bankers Berhad). It is for distribution only under such circumstances as may be permitted by applicable law. The
opinions and information contained herein are based on generally available data believed to be reliable and are subject to change without notice, and may differ or
be contrary to opinions expressed by other business units within the RHB Group as a result of using different assumptions and criteria. This report is not to be
construed as an offer, invitation or solicitation to buy or sell the securities covered herein. RHBRI does not warrant the accuracy of anything stated herein in any
manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against RHBRI. RHBRI and/or its associated persons
may from time to time have an interest in the securities mentioned by this report.

This report does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives
of persons who receive it. The securities discussed in this report may not be suitable for all investors. RHBRI recommends that investors independently evaluate
particular investments and strategies, and encourages investors to seek the advice of a financial adviser. The appropriateness of a particular investment or
strategy will depend on an investor’s individual circumstances and objectives. Neither RHBRI, RHB Group nor any of its affiliates, employees or agents accepts
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Group may at any time hold positions, and may trade or otherwise effect transactions, for its own account or the accounts of customers, in debt or equity
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This report has been prepared by the research personnel of RHBRI. Facts and views presented in this report have not been reviewed by, and may not reflect
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The research analysts, economists or research associates principally responsible for the preparation of this research report have received compensation based
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Technical recommendation framework for stocks and sectors are as follows: -

Technical Recommendation:
Trading Buy = Short-term positive opportunity spotted. It is an aggressive trading recommendation with a book to sellers’ price for short-term technical upside.
Bargain Buy = Short-term positive but technical signals have yet to trigger a rally. Traders can park and queue for their desired entry level within a small range.
Buy on Weakness = Short- to Medium-term positiveness anticipated, but technical readings are still negative. Traders can pick-up the stock for future rally.
Sell on Strength = Short-term momentum still positive, Traders are advice to lock in profit base on current strength.
Take Profit = Short-term target achieved. Traders are advice to exit before the technical readings turn bearish.
Avoid = Risky situation in the short-term and high volatility expected on the share price. Traders’ best strategy is staying away until it stabilises.

Technical Time Frame:

Immediate-term = short time frame within a contra period.
Short-term = moderate time frame within two to three contra periods. For tracking purposes, we refer to 10 trading days.
Medium-term = medium time frame usually refers to two to three weeks period. For tracking purposes, we refer to 20 trading days.

Technical recommendations are generally short-term in nature and may differ from RHBRI’s equity fundamental view and recommendation on the same company.

RHBRI is a participant of the CMDF-Bursa Research Scheme and will receive compensation for the participation. Additional information on recommended
securities, subject to the duties of confidentiality, will be made available upon request.

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actions of third parties in this respect.

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