Malaysia Daily, Maybank KE (2014-04-28)

Daily 28 April 2014 SPECIAL FEATURE MY Aviation Sector klia2 site visit: Wonderful! klia2 still has some outstanding works to be done, but this should not hamper its 2 May launch date. klia2 looks impressive, true to its "airport-within-a-mall" concept. This is not a low cost terminal by any measure. klia2 will greatly enhance Malaysia's aviation infrastructure and keep it ahead against the regional peers. Click here for full report » RESULTS REVIEW DiGi.Com: Maintain Hold A steady start  Shariah-compliant Both 1Q14 EBITDA and net profit were within expectations at 24% and 26% of our full year forecasts respectively. Both revenue growth and margins were within guidance, signifying a steady start to the year. Maintain HOLD, TP unchanged at MYR5.00. Click here for full report » Technicals Sell in May & go away? The FBM KLCI inched up 8.29 points WoW on some minor buying activities last week. The index closed at 1,860.98 last Friday, as volume turned up from 1.93b to 2.61b shares traded. In view of the �Sell in May and Go Away USA� effect, clients may continue to look out for defensive counters to invest in. Trading idea is a Short-Term Buy on OKA with upside target areas at MYR1.87 & MYR2.23. Click here for full report » Other Local News Construction: CIPAA comes into force. New act provides an interlocutory mechanism which is quick and cheap to help contractors resolve payment disputes within 100 days. This is a far cry from traditional methods for dispute resolution such as arbitration and court litigation which take approximately 9 to 12 months to resolve. (Source: The Edge Financial Daily) Media: Cinema ads boost Malaysian adex to surge by 15% in first quarter. Advertising expenditure (adex) in Q1 of this year grew 15% to MYR3.07b from MYR2.68b in the previous corresponding period, with the biggest growth recorded by the cinema segment. Adex in Q1 was boosted by local Chinese movies that were released in conjunction of Chinese New Year. Outlook for second quarter, ad spend to be boosted by World Cup, which kicks off in June. (Source: The Star) DRB-HICOM: Proton targets core marts to drive exports. Proton Holdings Bhd which is owned by DRB-HICOM Bhd is hoping to ramp up exports by focusing on its core markets, including the United Kingdom, Australia and Egypt. (Source: Business Times) Axiata: Revenue growth on track. Axiata is on track to achieve a revenue growth trajectory of mid to high single digit in the next three to five years. Axiata president and group CEO Datuk Seri Jamaludin Ibrahim said the group has aligned four areas of its business: new services; expansion of digital services; mergers and acquisitions (M&As); and towers and civil infrastructure, to ensure that the regional telco giant is on target for continued growth. (Source: Business Times) Outside Malaysia U.S: Consumer sentiment rose in April to nine-month high, showing Americans are growing more upbeat about the economy as the labor market gains traction. The Thomson Reuters/University of Michigan final index of sentiment increased to 84.1 from a four-month low of 80 in March. (Source: Bloomberg) U.K: Home prices climb amid resistance in London, Hometrack says. Values in England and Wales rose 0.6% MoM, the same pace as in March, the London-based property researcher said in an e-mailed statement. Forty-eight percent of postcodes recorded an increase, the highest proportion in a decade. House prices are being driven by record-low Bank of England interest rates, a shortage of property for sale and a strengthening economy that's creating jobs. Officials have said they're monitoring the market for signs price increases may jeopardize financial stability. (Source: Bloomberg) U.K: Retail sales unexpectedly rise in March as growth gains momentum. Sales including auto fuel gained 0.1% MoM from February, when they increased 1.3% MoM, the Office for National Statistics said. That compared with a forecast for a decline of 0.4% MoM, according to the median estimate in a Bloomberg News survey. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,861.0 (0.3) (0.2) JCI 4,897.6 14.6 0.1 STI 3,267.6 3.2 (0.5) SET 1,408.2 8.4 (1.0) HSI 22,223.5 (4.6) (1.5) KOSPI 1,971.7 (2.0) (1.3) TWSE 8,774.1 1.9 (1.9) DJIA 16,361.5 (1.3) (0.8) S&P 1,863.4 0.8 (0.8) FTSE 6,685.7 (0.9) (0.3) MYR/USD 3.3 (0.2) 0.0 CPO (1mth) 2,705.0 2.9 0.1 Crude Oil (1mth) 100.6 2.2 (1.3) Gold 1,303.3 8.5 0.8 TOP STOCK PICKS Buy rated large caps Price Target Tenaga 11.94 14.00 Genting Msia 4.18 4.74 HLBK 13.98 16.40 AMMB Holdings 7.18 8.50 Bumi Armada 4.00 5.00 IJM Corp 6.39 6.75 MPHB Capital 1.97 2.42