Thursday, February 25, 2010
Plus testing 3.50
My Chap Ayam indicator pointed Plus Expressway today. Technically, has potential to test resistance RM3.50. Analyst said, this counter has defensive qualities. OSK kept PLUS Expressways at Buy with RM4.10 TP, citing its defensive nature as well as decent yield of 5%. Plus Expressway’s FY09 earnings grew 9.9% to RM1.2b in-line with the brokerage’s projections. OSK also noted that the traffic volume for FY09 increased for all 4 domestic highways driven by substitution to domestic travel given the H1N1 outbreak and recession, travel incentives offered during festive seasons and improved driving conditions on the North-South Expressway. However, OSK added that cost savings brought about in FY09 were unlikely to continue indefinitely.