Oil gushes above $65 ; Dow went for a joyride

Stocks Lifted by Oils, Financials

The Dow Jones industrial average rose 103.78, or 1.3 percent, to 8,403.80.
The Standard & Poor's 500 index rose 13.77, or 1.5 percent, to 906.83.
The Nasdaq composite index rose 20.71, or 1.2 percent, to 1,751.79.
For the week:
The Dow is up 126.48, or 1.5 percent.
The S&P is up 19.83, or 2.2 percent.
The Nasdaq is up 59.78, or 3.5 percent.
For the year:
The Dow is down 372.59, or 4.3 percent.
The S&P is up 3.58, or 0.4 percent.
The Nasdaq is up 174.76, or 11.1 percent.

Stocks in New York moved more than 1% higher Wednesday, fueled by oil stocks and financials, while investors also digested a Treasury auction. Oil and gas stocks were also on the rise after OPEC decided to keep its production targets unchanged, reportedly eyeing an uptick in demand.

Financials were among the stronger stocks on the Dow, with JPMorgan Chase(JPM Quote) rising 5.7% and Bank of America(BAC Quote) adding 3.6% after it detailed plans to further increase capital levels by exchanging 200 million shares of common stock for preferred.

Crude oil futures rose $1.63 to settle at $65.08 a barrel. "Oil prices are up, breaching $64 per barrel, in the aftermath of the OPEC meeting where a crude oil price 'target' of $75-$80/barrel by year-end was discussed," writes Stuart Hoffman, chief economist for PNC Financial Services Group. "If achieved through further OPEC oil supply cuts, this would cause a major relapse in the global economy's feeble recovery hopes for 2010."

It didn't hurt that crude oil inventory levels, which are still 18% above the same time last year, fell sharply last week. Stockpiles were down by 5.4 million barrels, vs. expectations for a 1.8 billion barrel build. Gasoline inventories, on the other hand, fell less than expected, by 600,000 barrels to 203.4 million, but are 2.4% below a year prior.

Stocks in Europe were widely lower, with London's FTSE 100 and Frankfurt's Dax down by 0.7% and 1.4%, respectively. In Asia, Japan's Nikkei gained 0.1%, while Hong Kong's Hang Seng was closed for the session.

Gold gained $8 to settle at $962.80 an ounce, and the dollar was stronger vs. the pound and euro and slightly weaker against the yen.

7164 KNM >>> Calculative OFF Major Support

NOTE : Trendlines, Support & Resistance are just marking guides as per shown in their respective charts and are still subjective at best. There are NO sure things. As much as resistance are there to be broken; support are also there to be taken out.

Chartist are therefore, reminded to impliment TA with a touch of common sense. TQVM

HAPPY TRADING & GOODLUCK2ALL!!!

TECHNICAL ANALYSIS >>> Composite Index 28/05/2009 / 综合指数 2009年 5月 28日

Composite Index Daily Technical Analysis 28/05/2009
On Thursday, the KLCI tested the T2 line, with an intra-day low reaching 1037.09 points. However, it was precisely supported by the Bollinger Middle Band, and rebounded to close at 1041.24 points, down 6.44 points. Therefore, the Bollinger Middle Band is still the support for the KLCI, while the 1053 is still the resistance. (Study A)

As shown on the chart above, the Bollinger Bands Width did not expand, suggesting that the KLCI is consolidating, or even a chance for a technical correction. The contraction of the Bollinger Bands Width also suggests that the KLCI is now preparing for a new movement.

As indicated by B, total market volume declined 25.4%, with volume now below the 40-day VMA level. This shows that the overall market is quiet, thus suggesting a lack of inflow of fresh capital. Therefore, with volume remains below the 40-day VMA level, the KLCI is likely to move sideways or with some downside biased.

As circled at C, the Stochastic is testing the 70% level, if it should break below 70% level, it would means a beginning of a technical correction. If the Stochastic should break below 30% level, it would be a signal suggesting a short term weakening movement for the KLCI.

As the KLCI repeated resisted by the 1053 Fibonacci Retracement, it started to consolidate amid the absence of positive news. However, this does not mean an end to the uptrend yet, for the Bollinger Bands Width has not expanded. Generally, we have to wait until the Bollinger Bands Width should expand, then only one to determine whether the KLCI would resume its uptrend or to turn weaker by the position of the KLCI above or below the Bollinger Middle Band.

综合指数 2009年 5月 28日

综合指数稍微跳空向下开市，一度下跌至全日最低点的1037.09点，惟综指精确的在布林中频带（Bollinger Middle Band）上获得扶持而反弹（参考箭头A），按日下跌6.44点或0.6%。如图所示T2的上升趋势线与布林中频带重叠，所以支持力量倍增，换句话说这成为了综指接下来的重要支持线，综指的阻力水平则依然是1053点的胜图自动费氏线。

如图所示，布林频带周四打开的幅度减至0%，这表示综指有开始进入巩固的迹象。换句话说，若布林频带接下来收窄的话，那综指将有技术调整的风险，无论如何，布林频带收窄也代表综指正酝酿着一个新的走势。

如图中箭头B所示，马股总成交量下滑25.4%，这使到成交量继续处于40天的成交量平均线（VMA）以下，这表示市场的交投淡静的，所以市场能承受的卖压也减弱，通常若成交量保持低迷的话，那综指的走势将倾向于调整甚至走软的格局。

如图中C圈所示，随机指标（Stochastic）在周四继续下跌，目前在试探70%的水平。接下来若随机指标跌破70%水平的话，那综指短期将进入技术调整的格局，若随机指标跌破30%水平的话，综指将形成短期下跌的趋势。

综指多次在1053点胜图自动费氏阻力线遇阻后，加上市场缺乏新的利好因素，所以综指进入调整巩固的格局。虽然这并不代表涨势就此结束，因为布林频带依然没有打开，总的来说，接下来若布林频带开始收窄代表综指进入调整巩固的格局，通常综指的后市要在布林频带再度开始时才能确认，换句话说，那时综指处于布林中频带的相应位置将成为综指下一个趋势的领航灯。

5145 SEALINK >>> TRADING BUY

5145 SEALINK SEALINK INTERNATIONAL BHD
Final Single Tier Dividend 4 Sen

Entitlement Details:
A Final Single Tier Dividend of 4 sen per share subject to the approval of
Shareholders at the forthcoming Annual General Meeting.
Entitlement Type:
Final Dividend

Entitlement Date and Time:
15/07/2009 04:00 PM
Year Ending/Period Ending/Ended Date:
31/12/2008
EX Date:
13/07/2009

Payment Date:
31/07/2009
Interest Payment Period:

Rights Issue Price:

Trading of Rights Start On:

Trading of Rights End On:

Stock Par Value: RM0.50

Share transfer book & register of members will be closed from to (both dates inclusive) for the purpose of determining the entitlements

A Depositor shall qualify for the entitlement in respect of:
- Securities transferred into the Depositor's Securities Account before 15/07/2009 04:00 PM in respect of ordinary transfers.
- Securities transferred into the Depositor's Securities Account before in respect of express transfers.
- Securities deposited into the Depositor's Securities Account before in respect of securities exempted from mandatory deposit.
- Securities not withdrawn from the Depositor's Securities Account as at .
- Securities bought on KLSE on a cum entitlement basis according to the Rules of the KLSE.

OO47 PERISAI >>> BUY TARGET RM1.04

VALUATION
􀂃 We are attaching a 10% discount to our CY09 target PER of 12x to fairly value Perisai at RM1.04. The migration of the shares to Main Board in June will improve its appeal among institutional investors as it is grossly undervalued based on its CY09 PER of 5.8x vs. sector PER of 8.6x. It is the cheapest oil and gas stock under our coverage. Maintain Buy.

REVIEW

􀂃 Perisai’s 1QFY09 net profit of RM16mn came within our forecast RM15mn to RM17mn. It could have been much higher at RM18mn if not for the RM3.33 losses incurred by its 60% subsidiary Corro-Shield.
􀂃 The 1QFY09 net profit is higher than the RM15.2mn reported net profit for the whole of 2008. The spectacular performance was made possible by the strong full quarter contribution from Enterprise 3, its pipe laying vessel that started operation in November last year.
􀂃 EBITDA margin improved dramatically to 69.2% from 17.6% a year ago, thanks to the pipe laying vessel, which is on a bareboat charter to TL Offshore at a day rate US$95k/day, and the SAT system that become operational in April 2009

OUTLOOK
􀂃 We believe something exciting is brewing behind the scene based on the company’s recent announcement to issue a US$10mn nominal value of zero coupon 2-year redeemable convertible bonds (RCB). It has a taker for the issue in TAEL One Partners Ltd of Singapore, which is willing to subscribe for it at a 12% discount to its nominal value. This translates into an annual interest rate of 6.6%.The conversion price has not been fixed and Perisai has the option to redeem up to US$5mn at 100% of the nominal value, which will minimize the issuance of new shares.

􀂃 We suspect Perisai is raising the money to commercialize some of its promising technologies that it has been working with in the past few years such as the Alpha Prime Module and SIRPS. The SIRPS has undergone a few modifications and known as MOPSU currently. The license for it is held by Kingtime International Limited that gives Perisai first right of refusal to acquire a strategic investment in MOPSU and Perisai is evaluating its options currently.

􀂃 By acquiring the rights to MOPSU, Perisai has the option to engage its Alpha Prime
as a topside module on this technologically advanced cost efficient mobile offshore drilling, production and storage unit that could potentially save US$100mn per field.