Malaysia Daily, Maybank KE (2014-03-25)

Daily 25 March 2014 RESULTS REVIEW SapuraKencana Petroleum: Maintain Buy Results within range  Shariah-compliant FY14 results meet expectations, accounting for 103%/95% of our/consensus full-year forecasts. Newfield Malaysia, consolidated from Feb 2014, will drive group earnings: +MYR116m in FY15 and +MYR447m in FY16. Maintain BUY and MYR5.30 SOP TP. Click here for full report » Technicals Sustained local buying The FBMKLCI surged by 13.37 points to close at 1,833.85 yesterday, while the FBMEMAS and FBM100 also closed higher by 64.50 points and 60.41 points, respectively. We recommend a �Buy on Dips� stance for the index. Trading idea is a Short-Term Buy on PRTASCO with upside target areas at MYR2.04 & MYR2.60. Stop loss is at MYR1.61. Click here for full report » Other Local News Jaks Resources: Bags MYR399m sewerage pipe network contract. Water management solutions provider Jaks Resources Bhd has secured a contract for the construction of a sewerage pepe network worth MYR399.3m from the Ministry of Energy, Green Technology and Water. Its wholly-owned subsidiary, Jaks Sdn Bhd, received the award on March 19 for the proposed design and construction and completion of Package D43 � construction of sewerage pipe network at Batu, Jinjang, Kepong, Kuala Lumpur. The job is expected to be completed by April 2018. (Source: The Edge Financial Daily) Oil & Gas: Oil and gas deals to be sealed at OTC Asia. A number of oil and gas deals are expected to be inked at the sidelines of this week�s Offshore Technology Conference Asia 2014 (OTC Asia) conference, industry sources say. OTC Asia is a key trade event for the industry being held for the first time in Kuala Lumpur. Among the deals that could be signed are the risk service contracts (RSCs) for Uzma Bhd, Vestigo Petroleum Sdn Bhd and their respective international partners. (Source: The Star) Oil & Gas: Rapid investment may top USD50b. Investments at the Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor, could top USD50b (MYR165b) by 2020, 150% more than the initial target of USD20b. Malaysian Investment Development Authority (Mida) said Pengerang will serve as catalyst for development in areas such as refinery, petrochemicals, power, naptha cracker and regasification plants, as well as crude oil storage and liquefied natural gas storage tanks. (Source: Business Times) Consumer IPO: 7-Eleven Malaysia gets IPO approval, targets May listing. 7-Eleven Malaysia Holdings Bhd has received approval, following its second application, to list on Bursa Malaysia offering an estimated USD200m (MYR660m) worth of shares. To fund expansion plans, 7-Eleven is offering up to 530.33m shares � 490.78m shares for institutional investors and the remainder for individuals. (Source: The Edge Financial Daily) Plantation IPO: Boustead Plantations gets nod for listing. Boustead Holdings Bhd has received approval from the Securities Commission for the proposed listing of its wholly-owned unit, Boustead Plantations Bhd (BPB), on the main board of Bursa Malaysia. The proposed listing will see the group consolidating its plantation assets under BPB, which allows greater economies of scale and streamline operations to optimise performance. Upon listing, BPB's total enlarged share capital will hit MYR800m, with 1.6b shares. The proposed listing consists of 580m new shares for retail and institutional investors as well as 76m existing shares under the offer for sale from its parent company. (Source: Business Times) Outside Malaysia U.S: Markit manufacturing index fell to 55.5 in March from 57.1 a month earlier, the London-based group said. A reading above 50 indicates expansion. This month's reading was the second-highest since January 2013. The group's new-orders index declined to 58 from 59.6 in February. Employment also continued to grow at a slower pace in March. (Source: Bloomberg) E.U: Growth in euro-area manufacturing and services stayed close to the fastest since 2011 in March as France improved, providing further evidence that the region's recovery is on track. Indexes for both industries based on surveys of purchasing managers were little changed from February, London-based Markit Economics Ltd. said. A composite gauge slipped to 53.2 from 53.3 in February. The index has been above 50, indicating expansion, since July. (Source: Bloomberg) Brazil: Credit rating cut to BBB- by S&P on sluggish growth. S&P downgraded the government one level to BBB- its lowest investment-grade rating, from BBB. The new ranking is in line with countries including Spain and the Philippines and one notch below Russia. (Source: Bloomberg) China: Manufacturing industry weakened for a fifth straight month, according to a preliminary measure for March, deepening concern the nation will miss its 7.5% growth target this year. The Purchasing Managers' Index from HSBC Holdings Plc and Markit Economics dropped to 48.1. Numbers above 50 signal expansion. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,833.9 (1.8) 0.7 JCI 4,720.4 10.4 0.4 STI 3,111.8 (1.8) 1.3 SET 1,349.9 3.9 (0.8) HSI 21,846.5 (6.3) 1.9 KOSPI 1,945.6 (3.3) 0.5 TWSE 8,605.4 (0.1) 0.3 DJIA 16,276.7 (1.8) (0.2) S&P 1,857.4 0.5 (0.5) FTSE 6,520.4 (3.4) (0.6) MYR/USD 3.3 0.7 (0.2) CPO (1mth) 2,793.0 6.3 (1.0) Crude Oil (1mth) 99.6 1.2 0.1 Gold 1,324.1 10.1 (1.3) TOP STOCK PICKS Buy rated large caps Price Target Tenaga 11.92 14.00 Genting Msia 4.21 4.74 HLBK 14.16 16.40 AMMB Holdings 7.15 8.50 Bumi Armada 3.92 5.00 IJM Corp 6.08 6.75 Time dotCom 3.77 4.40 MPHB Capital 1.82 2.42 Cahya Mata Swak 9.64 10.50