Maybank Research Highlights - 4 Sep 2014

Author: kltrader   |   Publish date: Thu, 4 Sep 09:45

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Technicals

Further prevalent bearishness The FBMKLCI declined 2.82 points to 1,864.87 yesterday, while the FBMEMAS and FBM100 also inched lower by 1.30 points and 2.56 points, respectively. In terms of market breadth, the gainer-to-loser ratio was 386-to-455, while 324 counters were unchanged. A total of 2.99b shares were traded valued at MYR2.10b.  Major Asian indices rose as reports showed a faster growth in China service industries and US manufacturing boosted optimism in the world’s biggest economies.

Other Local News

Water: Khalid to seal water deal The Selangor water restructuring exercise, which will see the state government take over four water concessionaires, will be finalized next week at the latest, said Menteri Besar Tan Sri Khalid Ibrahim. Contract between state, federal governments covers multiple agreements. (Source: The Edge Financial Daily)  Aviation: Penang airport seen to handle 5% more cargo this year. Freight Forwarders Association (PFFA) is projecting the total tonnage of cargo handled to increase by about 5% to 119,140 tonnes this year from 113,437 tonnes a year ago. PFFA expects a stronger surge in the volume of electronic and semiconductor components shipped out in the fourth quarter. (Source: The Star)  Healthcare: BP Healthcare plans to raise MYR500m from IPO. Next year, BP Healthcare, a diagnostics-to-laboratory medical group, plans to raise up to MYR500m through a special purpose acquisition vehicle (SPAC) listing according to sources. (Source: The Star) Boustead Heavy Industries Corporation: Boustead JV finalizes MYR1.34b submarines service deal. It's JV has finalised the negotiations with the Malaysian government to provide in-service support for two submarines for the navy. To recap, BHIC had announced on Aug 13, 2010 that it had received a letter of award from the government to provide the service for two Prime Minister's Class Submarines for the navy at a total contract value of MYR807.28m and MYR532m. (Source: The Star) Dayang Enterprise: Plans to raise MYR304.4m. This will be done via private placement for additional working capital and potential investment in projects which are synergistic with its existing business. (Source: Business Times) Gas Malaysia: Agrees on project terms. It has agreed on the terms for the engineering, procurement, installation and commissioning of coriolis meter complete with data logger at 151 Petronas natural gas vehicle stations for MYR11m. (Source: Business Times)  Maybank: Still see huge potential in Asean, says CEO. He cited that even within the consumer segment, there were new growth areas such as regional private banking and asset management. Other areas included insurance, Islamic banking as well as trade financing stemming from rising trade and investment in Asean. (Source: The Star)

Outside Malaysia

U.K: Services growth in August surges in sign of unbalanced recovery, countering a slowdown in manufacturing and reinforcing the recovery's dependence on domestic demand. Markit Economics' Purchasing Managers' Index rose to a 10-month high of 60.5 from 59.1 in July. (Source: Bloomberg) China: Service industries strengthened in August, contrasting with declining manufacturing gauges and suggesting a transition away from factory-led growth. The non-manufacturing Purchasing Managers' Index advanced to 54.4 from 54.2 in July, the National Bureau of Statistics and China Federation of Logistics and Purchasing said. A separate services gauge from HSBC Holdings Plc and Markit Economics surged to a 17-month high of 54.1, from 50 in July. Readings above 50 for both gauges indicate expansion. (Source: Bloomberg) Indonesia: Widodo may raise fuel prices as early as October. Indonesian President-elect Joko Widodo may raise subsidized fuel prices as early as next month when his term begins, to free up state funds and increase investment in Southeast Asia's largest economy. "We can't avoid this solution" because we are unable to find ways to boost revenue in the short term, Arif Budimanta, a member of Widodo's economic team, said in an interview in Jakarta. "Previously, we expected a price increase this month under the current government, but the current government can't do it. Maybe we can do it in October or November." (Source: Bloomberg) Australia: Economic growth slowed last quarter in response to a stronger currency and weaker commodity prices, as central bank Governor Glenn Stevens indicated he wants to avoid cutting interest rates further. Second-quarter gross domestic product advanced 0.5% QoQ from the prior three months, when it rose 1.1% QoQ, a Bureau of Statistics report showed. Stevens, in a speech shortly after the release, said he is unwilling to drive up house prices even further to quicken a fall in unemployment, which jumped to a 12-year high in July. (Source: Bloomberg)