KDN PP9488/05/2010 (023849) Wednesday– 13/10/10

For Private Circulation Only

Indices Value Net Chg
FBM KLCI 1486.57 0.84
FBM EMAS 9988.09 -2.31
FBM-ACE 4089.21 +8.46
KLCI Futures 1479.5 -11.0
Vol (m shrs) 917.8
Value (RM´m) 1,844.0

DJIA 11020.40 +10.06
S&P 500 1169.77 +4.45
NASDAQ 2417.92 +15.59
NIKKEI 9388.64 -200.24
HANGSENG 23121.70 -85.61
CHINA CSI 300 3172.73 +39.83
STI 3150.18 -13.23

( 2 1m shares )
Stock Name Volume Price
INGENS 13,497,760 0.06
GENETEC 3,800,800 0.25
CIMB 147,363,749 7.99
MUTIARA 3,500,000 0.96
SCOMI 1,200,000 0.41

Stock Name Volume Price
HWGB 50,089,800 0.265
GENS-CC 40,764,500 0.19
SINOTOP 40,240,100 0.15
CIMB 28,525,200 8.10
KBUNAI 28,455,700 0.13

Stock Name Change Price
OSKVI-WA 2100.0 0.11
AIC-WC 64.0 0.41
METECH 45.8 0.35
K1-WA 41.7 0.34
COMCORP 39.4 0.23

Stock Name Change Price
EMICO-WA 60.0 0.08
FONICS 60.0 0.015
TOYOTA-C3 50.0 0.005
PENSONI-WA 50.0 0.005
CHALCO-C2 25.0 0.015



• Petronas Chemicals IPO to raise US$4b

• Top Glove expects profit, revenue jump of 10%

• KYM pays off debts to 2 banks

• EPF still frontrunner for takeover of PLUS Expressways

• Star announces special dividend

• WCT close to order book target

• Strong growth projected for M'sia

Rising expectations that the Fed will implement more quantitative easing lifted
Wall Street from its day´s low which is expected to spill over into the Asian
markets today. Hence, the FBMKLCI is seen attempting another new high and
revisit the 1500 level, after a mild correction yesterday. Meanwhile, hype
surrounding the Budget 2011 is driving some rotational plays but we remain
cautious as profit-taking may occur after the announcement. Nevertheless, the
short-term trading mood is seen to be buoyant.





Hong Kong



US stocks on Tuesday erased early losses to close in positive territory after traders
were encouraged by confirmation that the Federal Reserve may soon provide more
stimulus to boost economic recovery. Wall Street sentiment was further lifted
shortly after trading ended when technology bellwether Intel announced a
stronger-than-expected quarterly profit and record revenue. The blue-chip Dow
Jones Industrial Average rose 10.06 points (0.09%) to 11,020.40 points. The
broader S&P 500 index was up 4.45 points (0.38%) at 1,169.77 points, while the
tech-rich Nasdaq composite index gained 15.59 points (0.65%) to 2,417.92. The
markets have been on an upswing since the Fed's policy-setting Federal Open
Market Committee said following its last meeting on Sept 21 that the central bank
was prepared to step in if the lagging recovery warranted it.

Share prices on Bursa Malaysia closed lower yesterday in line with weaker regional
markets, dealers said. The FTSE Bursa Malaysia Kuala Lumpur Composite Index
ended the day at 1,486.57, down 0.84 of a point from Monday's closing of
1,487.41. The local market started the day in positive territory, boosted by strong
buying in plantation-related stocks following a surge in crude palm oil (CPO) prices
on Monday. However, weaker performance in key regional markets encouraged
investors to trim their position. Losers led gainers by 420 to 327, while 306
counters were unchanged and 27 others suspended. Volume on the Main Market
rose to 917.78m shares worth RM1.84b from 895.24m shares worth RM1.67b on

Japanese stocks fell, with the Nikkei 225 Stock Average dropping the most in a
month. Carmakers slid on speculation the yen will remain strong against the dollar
as the U.S. Federal Reserve eases monetary policy. The Nikkei 225 lost 2.1% to
9,388.64 closed in Tokyo, the biggest decline since Sept. 8. The Topix index fell
1.8% to 824.60, with about 20 stocks retreating for each that rose. Japan´s
markets were shut yesterday for a national holiday.

Hong Kong´s stock index fell, ending six days of gains, as developers and banks
dropped after China raised reserve requirements for lenders. About three stocks
dropped for every two that gained on the Hang Seng Index, which fell 0.4% to
23,121.70 at the close, after rising as much as 0.2%. The benchmark Hang Seng
Index climbed to its highest level since June 2008 yesterday, driving its 14-day
relative-strength index of price momentum to 82, above the 70 level considered by
some traders as a sell signal. That was the RSI´s highest level since October 2007,
when the Hang Seng Index closed at a record 31,638.22.

China´s stocks entered a so-called bull market as a rally for commodity producers
and automakers on improving earnings prospects drove the benchmark index to
the highest level in five months. The Shanghai Composite Index, the larger of
China´s two exchanges, rallied for a third day as the country´s shares caught up
with regional measures after a weeklong holiday from Oct. 1 to Oct. 7. The index
rose 1.2% to 2,841.41, led by energy and metal producers.

Straits Times Index fell 0.4% to 3,149.36 at the close. Six stocks fell for each that
rose on the 30-member gauge. Shares on the measure trade at an average 15.5
times estimated earnings, compared with about 17.4 times at the beginning of the
year, according to data compiled by Bloomberg.


Petronas Chemicals
IPO to raise US$4b

Top Glove expects
profit, revenue jump
of 10%

KYM pays off debts to
2 banks

EPF still frontrunner
for takeover of PLUS

Star announces
special dividend

WCT close to order
book target

Petronas Chemicals Group Bhd (Petronas Chemicals) is looking to raise as much as
US$4b (RM12b) in a Malaysian initial public offering (IPO), exceeding earlier
estimates of over US$2b (RM6b) as it hopes to tap strong global investor demand
for Asian stocks. The IPO for Petronas Chemicals, owned by oil giant Petroliam
Nasional Bhd (Petronas), could become the largest share offering in the country,
exceeding Maxis' US$3.3b (RM10b) listing last year. Petronas Chemicals has an
annual production capacity of more than 10m tonnes. It posted operating profit of
US$2.3b (RM7b) in fiscal 2009, according to its prospectus. The company is raising
funds for expansion of business, working capital and corporate needs. (Reuters)

Top Glove Corp Bhd is expecting profit and revenue to increase as much as 10% in
its financial year ending June 30 2011. However, it is also bracing for a challenging
year given the high latex prices and weakening dollar. Latex, which accounts for
59% of the company's overall expenses, is trading near a multi-year peak at
RM7.49 a kg. On another front, Top Glove is looking at acquiring nitrile glove
makers in the coming year as the product offers higher margins. Top Glove
currently has 18 factories producing 33b gloves a year from 371 production lines.
(Business Times)

KYM Holdings Bhd has paid RM120m as full and final settlements of the debts
owing to United Overseas Bank (Malaysia) Bhd and RHB Investment Bank Bhd for
several land sales. In a statement to Bursa Malaysia yesterday, KYM said it had
completed the disposal of 16 sixteen parcels of land of 1.6m sq m by Harta
Makmur Sdn Bhd, which is KYM's 54%-owned subsidiary, to Brazil's Vale
International SA. It has also completed the saleof 13 parcels of leasehold
properties (with an un-expired lease period of 80 years) of 306ha in Perak.
(Business Times)

Despite reports that there are five parties bidding for UEM Group Bhd, sources said
the Employees Provident Fund (EPF) is still the frontrunner for taking over PLUS
Expressways Bhd. The source added that while no decision had been made yet,
one of the considerations in the PLUS deal had been that in many countries, key
infrastructure assets were still kept in the hands of governments for national
security reasons. Khazanah owns 100% of UEM, which in turn owns 38.5% of
PLUS. Khazanah also has a direct stake of 16.7%, giving the government
investment arm control over 55.2% of PLUS. The EPF owns 12.27% of PLUS. While
the contenders were not disclosed, two parties - MMC Corp Bhd and Asas Serba
Sdn Bhd - have already gone public with their bids. PLUS reported a net operating
cashflow of RM2.1b for financial year 2009. It also paid out RM800m in dividends
for that financial year. (The Star)

Star Publications (M) Bhd announced yesterday a special dividend comprising 47.9
sen per RM1 ordinary share, less tax and 4.7 sen per RM1 ordinary share, tax
exempt for the year ending Dec 31, 2010. It told Bursa Malaysia yesterday the
entitlement date is Nov 10. This brings the total gross dividends for the current
financial year ending Dec 31 to 63.1 sen per share. For the financial year ended
Dec 31, 2009, total dividend payout amounted to 21 sen per share. For the first
half of the year, its net profit rose 72% to RM87.9m. (The Star)

Construction and property developer WCT Bhd is on the right track to achieve its
target order book of RM2b this year after clinching another new project last Friday
from Malaysia. During the AGM in May, the group was targeting to secure RM2b
worth of projects this year locally and internationally to add to its existing order
book of RM3.2b. To recap, last Friday, WCT told Bursa Malaysia that they had won
a 25-year concession from MAHB to build and operate an integrated complex at the
new LCCT. It said the complex, estimated to cost RM486m would comprise a
transportation hub for taxis and buses, one block of retail mall and car parks. (The


Strong growth
projected for M'sia

The slowdown in economic data pointing to a cooling of the economy has some
economists worried but many are sticking to earlier projections of strong full-year
growth on the strength of the first-half numbers. The economy grew by 10.1% in
the first quarter and 8.9% in the second quarter. Export growth for August was
10.6% which was the fifth consecutive month of slower external trade and
industrial production for growth for August was 4% after dipping to 3.4% after a
reading of 9.3% in June. While the general belief is that China would remain a
locomotive for Asia, Malaysia´s export growth to China was a meagre 2.4% in
August, causing some to wonder if that is a one-time blip. But the export growth
rates to South-East Asia too have slowed in recent months and showed growth of
5.6% in August. (The Star)

The information contained in this report was prepared from data believed to be reliable but we have not independently verified such data and we do not make any representation or
warranty as to the accuracy or completeness of the information. This report is general in nature and has been prepared for information purposes only. It does not have regard to
any specific investment objective, emphasis or need of any person or party. Any person/party acting upon this report do so at their own risk and PM Securities Sdn Bhd and/or its
directors and/or staff do not accept any liability whatsoever arising from the direct or indirect use of this report. Opinions expressed are subject to change without notice. PM
Securities Sdn Bhd and/or its directors and staff may have an interest in securities of the company or companies covered by this report and may earn brokerage for dealing in the
securities mentioned herein.

Published and Printed by:

PM Securities Sdn. Bhd. (66299-A)
A Participating Organisation of Bursa Malaysia Securities Berhad
Ground, Mezzanine & First Floor, Menara PMI, No. 2, Jalan Changkat Ceylon, 50200 Kuala Lumpur
General Line : 03-2146 3000, 03-2731 3000 Fax No : 03-2710 7830

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