Straits Asia +3.2%; Value Emerging - DBS Vickers

Straits Asia Resources (AJ1.SG) +3.2% at S$2.58, riding market uptick (STI last +2.1%) but struggles to recover Friday's 10.1% fall as investors remain concerned retreating oil prices may signal reduced demand for alternative fuel sources like coal. "We believe the recent price correction is unjustified, which has resulted in value emergence for SAR," says DBS Vickers, which has Buy call with S$4.77 target, based on 20.2X FY08 P/E. While stock remains oversold on RSI, Stochastic Oscillator, Money Flow Index, chance of near-term technical rebound low given subdued volume. Resistance expected at 10-day moving average of around S$2.83.