Today's outlook 21-Dec-2010

Overnight, US market ended flat with DJIA down 13.78p to 11478.13p while S&P gained 3.17p to 1247.08p.

Here are some of the news that may have affected US market:
i) American Express fell 3.4% as new rules by Fed Reserve could limit merchant fees of the Company.
ii) Increase in Amazon.com after analysts upgraded their estimates and ratings.
iii) Rebound in oil price provide support for energy stocks
My view:
Only the rebound of oil price news is something that I think could affect Malaysia market. Oil and gas counters are expected to continue to be in the limelight. From historical PER viewpoint, KNM seems to be the most attractive O&G stock. Also, I believe that North Korea is unlikely to attack South Korea. Overall, today should be slightly bullish for KLCI as investors are likely to return to search for better yields and growth in the equity market.
 
Stocks that I STILL find attractive:

1. CRESNDO (Pure proxy to Iskandar investment theme, paid 7 sen dividend in the past 5 Financial Years, undemanding Price/NTA of 0.47x only, got potential to go up to RM2.55)
2. AXIATA (Growth to come from Indonesia market, with stability in Malaysia Celcom, maiden dividend payout in 2011 should be a major rerating catalyst for this stock, average consensus Target Price RM5.28)
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)