Results Preview

Top Glove Corporation (RM6.15): Buy
– Earnings beater. Forecasts and target price raised.
Results to surprise. Top Glove’s 3QFY09 results (due on 23 Jun 09) are expected to beat our and streets’ estimates. Interim DPS may also be higher and the group would stay net cash for the 2 nd consecutive quarter. We have raised our estimates by 3-6% for the next three years and the target price by 18% to RM7.00. Buy call is maintained.


Other Local News
Resorts: Sees no hindrance to Macau investment
BIMB: Talks to sell takaful is still on
Mudajaya: Bidding fro RM1.65b worth of projects
Perwaja: Dispute with Petronas
Leader: Update on Leader’s 100MW coal fired power project in Cambodia
Delloyd Ventures: Signing of agreement between PT Asian Auto, Indonesia and Beiqi Foton Motor, China
Health (H1N1): Filipino traveller confirmed as 18th case
Petronas: PSC operator makes 2 offshore discoveries
KNM: To invest RM44m in Aussie firm
AirAsia X: Orders 10 A350s for US$2.2b
Asiatic: To be renamed Genting Plantations

Outside Malaysia
US: Mixed housing data offer cautionary tale about green shoots of recovery
US: Industrial production dropped 1% MoM in May
US: Producer price index (PPI) slipped further in May
Europe: Inflation rate fell to zero in May
Japan: BOJ kept its interest rate at 0.1%
UK: Inflation rate little changed in May as higher sin taxes and weak GBP sustained price pressures
Germany: Investor confidence rose to a three-year high
South Korea: Department-store sales rose for the third month in May
Crude oil: Price fell 15 cents to USD70.47 a barrel yesterday

Technicals
The local bourse tumbled yesterday, as commodities sank and investors questioned the pace of the economic recovery