Today's outlook 15-Dec-2010

Overnight, US market ended slightly higher with DJIA up 47.98p to 11476.62p while S&P gained 1.13p to 1241.59p.

According to Reuters, "Stocks cut gains to end mostly flat after a late-day sell-off on Tuesday as yet another cautious statement from the Federal Reserve on the economy offset strong retail sales data for November... The Fed, in a policy statement after its last scheduled meeting of 2010, said the economic recovery was still too slow to bring down unemployment and reaffirmed its commitment to buy $600 million in government bonds... U.S. retail sales rose for a fifth straight month in November, pointing to a firm rebound in consumer spending, which accounts for roughly two-thirds of the U.S. economy."

My view:
Overall, I think today should be slightly bullish for KLCI on the positive news from US retail sales.

Stocks that I STILL find attractive:

1. AXIATA (Growth to come from Indonesia market, with stability in Malaysia Celcom, maiden dividend payout in 2011 will be a major rerating catalyst for this stock, average consensus Target Price RM5.28)
2. FPI (Trade at attractive historical PER of only 5.85x, strong balance sheet with net cash of RM81.42m or 33.14 sen per share, got potential to go up to RM1.39)
3. HSL (Proxy to Sarawak election theme play, strong balance sheet with net cash position, upside potential will be the announcement of any future projects won, average consensus Target Price RM2.17)