Malaysia Daily, Maybank KE (2014-04-04)

Daily	04 April 2014
SECTOR UPDATE Special Feature PETRONAS gives go-ahead for RAPID Significant positive news, to be well received by the market. The investment value appears to be 20% below the original budget but could change as the development progresses. Dialog is a major beneficiary, followed by other O&G groups, and filtering down to the construction and property sectors. Click here for full report » COMPANY UPDATE MPHB Capital: Maintain Buy RAPID to lift Pengerang land value PETRONAS' RAPID project to take off; long-term positive for the capital appreciation of MPHB�s 1,803 acres next to the project. Every MYR1 psf revaluation takes our SOP up 11sen (+4.7%). Elsewhere, the 49%-MPI sale could lift our present SOP by another 23 sen to MYR2.65. BUY. Click here for full report » Sime Darby: Maintain Buy Pledges full co-operation  Shariah-compliant Sime's refining and marketing operation in South Africa (SA) is under investigation for alleged contravention of SA's Competition Act. The SA earnings contribution is marginal given its small refining capacity. Our BUY and MYR10.20 TP on 18x 2015 PER are unchanged. Click here for full report » MARKET STRATEGY Strategy: Neutral March fund flows Monthly foreign net selling has tapered off in March; foreigners turned net buyers in the last week of March. KLCI valuations stable at 16.4x 12M forward earnings; still not cheap vis-�-vis growth. No change to our end-2014 KLCI target of 1,940 and sector weights; we remain selective on stocks. Click here for full report » Technicals Headed above 1,860 soon The FBMKLCI advanced 3.63 points to close at 1,855.63 yesterday, while the FBMEMAS and FBM100 also closed higher by 22.46 points and 21.46 points, respectively. We recommend a �Buy on Dips� stance for the index. Trading idea is a Short-Term Buy on CBIP with upside target areas at MYR4.83 & MYR5.41. Stop loss is at MYR4.16. Click here for full report » Other Local News Mitrajaya: Bags MYR277.4m job. Pembinaan Mitrajaya Sdn Bhd, unit of Mitrajaya Holdings Bhd (MHB), has secured a construction and completion job of the main building works of Housing Block 5 at Symphony Hills, Cyberjaya. The contract from a member of the UEM Sunrise Group, Symphony Hills Sdn Bhd was expected to contribute positively to MHB group�s future earnings. The contract is for the duration of 29 months and targeted to be completed by August 2016. (Source: The Star) TRC: TRC Synergy bags MYR414.6m SP Setia Contracts. It has secured two Kuala Lumpur prime land real estate contracts from SP Setia Group�s unit KL Eco City Sdn Bhd. It is a mixed development comprising high-rise residential and office units came under collaboration of DBKL and KL Eco City. Contract starts n January 7, 2016 and is due for completion by October 6, 2017. (The Edge Financial Daily) Outside Malaysia U.S: Gains in services signal rebound ahead for growth. The Institute for Supply Management�s non-manufacturing index rose to 53.1 from a four-year low of 51.6 in February, the Tempe, Arizona-based group said. Readings greater than 50 signal expansion. (Source: Bloomberg) U.S: Trade deficit unexpectedly widened in February to the highest level in five months as exports of fuels and capital equipment dropped. The gap widened by 7.7% to USD 42.3b, the biggest since September, from the prior month's USD 39.3b, Commerce Department figures showed. (Source: Bloomberg) E.U: Services output remained close to the highest level since 2011 in March, signaling that the economic recovery in the 18-nation euro area is on track. An index based on a survey of purchasing managers slipped to 52.2 from 52.6 in February, London-based Markit Economics Ltd. said. (Source: Bloomberg) Russia: Seen on verge of recession as PMI shows contraction. Russia's economy is on the brink of a technical recession this quarter after gauges of manufacturing and services showed that seasonally adjusted output probably shrank between January and March for the first time since 2010. The composite purchasing managers' index dropped to 47.8 last month from 50.2 in February, HSBC Holdings Plc said in a statement, citing data compiled by London-based Markit Economics. A reading below 50 indicates contraction. Business expectations in the services industry were close to a record low seen at the end of 2008, HSBC said. (Source: Bloomberg) Thailand: March consumer confidence falls to 68.8 on protests. Consumer confidence falls for a 12th straight to 68.8 in March compared to 69.9 reported in February, University of Thai Chamber of Commerce said in statement. Index is at its lowest since Nov. 2001 as confidence was hurt by political protests and annulment of Feb. 2 election, as well as a Constitutional Court ruling against the govt's infrastructure spending bill. (Source: Bloomberg) Vietnam: Property market rebound may be delayed until 2015 as families struggle to access affordable loans and confidence lags, according to CBRE Group Inc. Only 1,500 condominiums were sold in Hanoi in the first quarter, according to CBRE. While that's a fivefold increase from the 279 sold in the same period two years ago, it's still down from the peak in 2009, when more than 15,000 units were sold in the capital city. In Ho Chi Minh City, first-quarter sales more than tripled to 2,263. That's compared to a peak of 13,000 condos sold in Ho Chi Minh City in 2010. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,855.6 (0.6) 0.2 JCI 4,891.3 14.4 0.4 STI 3,220.1 1.7 0.9 SET 1,391.2 7.1 (0.4) HSI 22,565.1 (3.2) 0.2 KOSPI 1,993.7 (0.9) (0.2) TWSE 8,888.5 3.2 (0.2) DJIA 16,572.6 (0.0) (0.0) S&P 1,888.8 2.2 (0.1) FTSE 6,649.1 (1.5) (0.1) MYR/USD 3.3 0.3 0.4 CPO (1mth) 2,675.0 1.8 (1.4) Crude Oil (1mth) 100.3 1.9 0.7 Gold 1,286.7 7.1 (0.2) TOP STOCK PICKS Buy rated large caps Price Target Tenaga 11.30 14.00 Genting Msia 4.22 4.74 HLBK 14.16 16.40 AMMB Holdings 7.21 8.50 Bumi Armada 4.05 5.00 IJM Corp 6.20 6.75 Time dotCom 3.90 4.40 MPHB Capital 1.87 2.42