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Tenaga Nasional Bhd's 3QFY08 net profit plunged by 70.2% YoY to RM296mn despite sales rising 7.4% YoY to RM6.35bn on rising material costs. The result is within market expectation.

The Independent Power Producers which successfully renegotiate their Power Purchase Agreements will be exempted from paying the windfall profit levy.

Petronas Bhd has not ruled out the possibility of acquiring service stations operated by other oil companies and indicated RM500mn capex to open 50 service stations in FY09.

Kencana Petroleum Bhd has secured a RM48mn contract from Murphy Sarawak Oil Co Ltd for the provision of mechanical and piping installation works for Bintulu Onshore Receiving Facilities.

The proposed takeover by Astro group of an equity stake in Indonesia's PT Direct Vision is still being discussed, with no conclusive result as yet says a company top official.

Some RM1.2bn will be made available to small- and medium-sized enterprises from August 1 to help them cope with rising costs, Prime Minister Datuk Seri Abdullah Ahmad Badawi said yesterday.

Sales of previously owned U.S. homes fell 2.6% to a lower-than-forecast 4.86mn annual rate in June, the lowest level in a decade due tumbling real-estate prices and consumer confidence.

AFX News - Thursday, 13 November 2008

Today's Market Highlight - Thursday, 13 November 2008

Investment News

Corporate Calendar

Market View

Sentiment on the local front will remain jittery in the near-term given the increased downside volatility on global markets, hence investors should tread cautiously and only buy on sharp dips during corrections with a view to sell on trading rallies, currently seen as the best trading option due to the extreme market volatility. Given the sharp overnight correction on US stocks which is likely to spill-over, look for KLCI to weaken to last Friday’s low of 869 before more significant bargain hunting emerge. A stronger support platform is seen at 849, the 38.2% retracement of the rally from 801 low on 28 October to the recent high of 926 of 5 November. On the upside, immediate resistance remains at 900, with key resistance at 920.

Investment News / Research

Review : Stocks on the local market ended mixed to lower on Wednesday, with heavy selling pressure on TM and Zelan amid falls on overnight US stocks and in the region dampening sentiment. The KLCI fell another 4.26 points, or 0.5% to close at 890.34, off an early high of 896.28 and a low of 882.65 as gainers edged gainers 253 to 243 on slower trade totalling 724.5mn shares worth RM985.9mn.

Outlook : Sentiment on the local front will remain jittery in the near-term given the increased downside volatility on global markets, hence investors should tread cautiously and only buy on sharp dips during corrections with a view to sell on trading rallies, currently seen as the best trading option due to the extreme market volatility. Given the sharp overnight correction on US stocks which is likely to spill-over, look for KLCI to weaken to last Friday’s low of 869 before more significant bargain hunting emerge. A stronger support platform is seen at 849, the 38.2% retracement of the rally from 801 low on 28 October to the recent high of 926 of 5 November. On the upside, immediate resistance remains at 900, with key resistance at 920.

On stock picks for the day, investors should look to bargain TM on dips as we deem yesterday’s sell-off as way overdone, sell on any further rallies in MRCB and SapuraCrest as overbought technical conditions should cap upside, and sell Zelan given the heavy selling volume yesterday which will depress prices further.

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