Dow ended at 299pts lower @ 6763 while S&P ended a whisker above 7000. Dismal results fr AIG, ConocoPhillips, GE, Time Warner, Merrill & BankofAmerica lead broadbased declines. FSSTI likely to push lower, amidst "Gloom&Doom" sentiment, possible support coming fr Nov lows of 1473. Remains yet to be seen if push below the bollinger will spark new wave down or provide support for prices.
CIMB FOCUS:
* SG STRATEGY: 4Q08 earnings review: Despite marked down expectations, co. that missed expectations still outpace those that topped. Expectations for CY09 is a -21.5% EPS growth. Easy to be bearish now as broadbase defaults rise. CIMB maintains NEUTRAL & expects FSSTI to find a floor btw 1200-1600.
-COMMODITIES: Maintain Neutral. TP(WIL)
-FINANCIAL: Maintain Underweight. TP(SGX)
-MEDIA & MFG: Maintain Overweight.
-O&M: Maintain Underweight. TP(SMM)
-PROPERTY: Maintain Underweight. Tp(CIT & WP)
-REITS: Maintain Overweight TP(CCT & PREIT& FCT)
-CONSUMER: Maintain Neurtral.
-TRANSPORT: Maintain Underweight TP(CD & MRT)
-TELCOS: Maintain Overweight. TP(M1 &ST)
* SG Banks: FY08 results below expectations with exception of DBS which came in inline. Rising credit costs to continue in 2009 though margins remain +ve. CIMB maintains UNDERWEIGHT on sectr with UNDERPERFORM on all 3 banks. In a recovery, bank with best lending franchise will benefit. Advocate swith fr DBS to UOB/OCBC
* BTH: Mgmt discussed 09 outlook & strategy. 08 results were disappointing as occupancy rates & forward bookings plunged. Property sales to remain weak. BTH to cut costs & defer capital expenditure to preserve cash. Potential re-rating catalysts include better occupancy which Thailand will benefit fr being a cheap holiday destination. CIMB maintains UNDERPERFORM, tgt $0.40.
* YNH: Awarded 2nd contract @ Marina Coastal Expressway, valued @ $53m. Orderbook remains at historical high with more MCE contracts coming. CIMB maintains OUTPERFORM & tgt $0.12 on stk that is well positioned for large-scale civil engineering works.
* BCH: announcement should be out before 9am this morning, possibly related to trade receivables. CFO also guided for -ve same store sales growth, which is unsurprising.

MALAYSIA
* 4% drop in US indices and europe suffering the same fate as AIG losses and
further weakness in financials pushing the DOW and world mkts to 12yr lows.
LOCAL mkt likely to see 860 support broken as well, as further foreign selling
expected to continue from yest.However bargain hunting expected to counter
fresh lows as 2nd Finance Min insists M'sia is still not in a recession.
* RHBC MK: RHB Investment Bank Bhd said RHB Bank Bhd has agreed to establish a
10-year exclusive banccasurance tie with American International Assurance Bhd
(AIA). The deal is to sell AIA’s conventional life insurance products via RHB
Bank distribution network and to its customers. AIA will pay RM50m for the 10-
year bancassurance relationship with RHB Bank.
* MUHI MK: Muhibbah Engineering (M) Bhd (MUHI) has clinched a contract worth
about RM109m for engineering, procurement, construction and commissioning of
the central oil distribution terminal at Tanjung Manis, Mukah, Sarawak. It said
the contract was awarded by Assar Chemical Dua Sdn Bhd. Work is scheduled to
commence this month for completion by the 3Q of 2010.
* MPU MK: will see 22m new shs trading today pursuant to exercise of warrants
* SCRES MK: will see 7m new shs trading today pursuant to execise of warrants
* LTK MK: will see 0.4m new shs trading today pursuant to exercise of ESOS