Today's outlook 22-Dec-2010

Overnight, US market ended flat with DJIA gained 55.03p to 11533.20p while S&P gained 7.52p to 1254.60p.

Here are some of the news that may have affected US market:
i) Support from financial sectors.
ii) Better than expected earnings Jabil Circuit Inc
iii) Easing tension on South Korea and North Korea conflict

My view:
The strength seen in US financial sectors coupled with easing tension on Korea issue are positive for Malaysia market. Oil and gas counters are expected to continue to be in the limelight. Yesterday I mentioned that from historical PER viewpoint, KNM seems to be the most attractive O&G stock. Yesterday, KNM announced it gets RM2b project. 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 0.48x 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)