Malaysia Daily, Maybank KE (2014-06-26)

Daily 26 June 2014 COMPANY UPDATE Petronas Chemicals Group: Maintain Hold Oil price kicker to ASP  Shariah-compliant We estimate PCHEM's ASP for 2014 YTD is -3.8% YoY, due to ample global supplies and high inventory levels. Prices have however risen in June in tandem with the rise in crude oil prices. We however retain our earnings forecasts for now. Maintain HOLD, with an unchanged target price of MYR6.85 based on FY14 PER of 15.0x ─ 10% premium to peers. Click here for full report » Technicals A quiet range day The FBMKLCI fell 2.78 points to 1,889.55 yesterday, while the FBMEMAS and FBM100 lost 25.85 points and 23.33 points, respectively. Trading idea is a Short-Term Buy on TITIJYA with upside target areas at MYR2.63 & MYR2.91. Stop loss is at MYR2.18. Click here for full report » Other Local News MAS: Finalising options to rescue itself. MAS is in the midst of finalizing various options with the government and its majority stakeholder Khazanah Nasional Bhd to come up with a rescue plan. Ailing airline expected to take tougher line to restructure itself this time, which may include job cuts. (Source: The Edge Financial Daily) SapuraKencana: Targets MYR10b order book. SAKP aims to secure MYR10b worth of order book this year to ensure its visibility in the next three to four years. SAKP has bagged several contracts worth MYR4.9b so far this year for both domestic and international waters. The target of MYR10b will help company sustain its order book at the current level of MYR27b in the long term. (Source: Business Times) Datasonic: Acquisition is conditional upon Fuelsubs securing fuel subsidy project. Datasonic Group Bhd will pay MYR10m for a 30% stake in Fuelsubs House Sdn Bhd (FHSB), a company that is bidding for a project to manage fuel subsidies. The acquisition was conditional upon Fuelsubs securing a letter of award from the Government to implement the project, Datasonic said. (Source: The Star) Sona Petroleum: Delays Salamander deal. Sona and Salamander has mutually agreed with Salamander Energy Plc to extend the exclusivity period for the proposed purchase of a stake in Salamander�s Thai unit until the end of July. Sona told Bursa Malaysia that the purpose of the extension of the exclusivity period was primarily to enable the auditors to prepare the unit, called Salamander Energy (Bualuang) Ltd (SEBG)'s financial statements under International Financial Reporting Standards (IFRS) for the past three years. (Source: The Star) FGV: To meet NBPOL advisers. FGV plans to meet NPBOL advisers to discuss its proposed acquisition of assets in Papua New Guinea. FGV president and chief executive officer Mohd Emir Mavani Abdullah said the bidding process for the proposed acquisition will begin in the first week of July. (Source: Business Times) Outside Malaysia U.S: Equipment orders boost case for growth rebound. Bookings for capital goods such as computers, a proxy for business spending, rose 0.7% MoM in May after falling 1.1% MoM in April, according to data from the Commerce Department. (Source: Bloomberg) U.S. Economy shrank in 1Q 2014 by most in five years as consumer spending cooled. Gross domestic product fell at a 2.9% annualized rate, more than forecast and the worst reading since the same three months in 2009, after a previously reported 1% drop, the Commerce Department said. It marked the biggest downward revision from the agency's second GDP estimate since records began in 1976. The revision reflected a slowdown in health care spending. (Source: Bloomberg) Singapore: Banks in Singapore will soon be required to keep certain amounts of easy-to-sell assets on hand in the country to support themselves in times of stress. The new liquidity framework applies to lenders with a "significant retail presence" in the country and covers all currencies, Lim Hng Kiang, the deputy chairman of the Monetary Authority of Singapore, or MAS, said in a speech. Banks will also need to hold liquid Singapore dollar assets separately to manage their liabilities in the local currency. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,889.6 1.2 (0.1) JCI 4,839.0 13.2 (0.5) STI 3,261.5 3.0 (0.0) SET 1,468.5 13.1 0.5 HSI 22,866.7 (1.9) (0.1) KOSPI 1,981.8 (1.5) (0.6) TWSE 9,242.2 7.3 (0.0) DJIA 16,867.5 1.8 0.3 S&P 1,959.5 6.0 0.5 FTSE 6,733.6 (0.2) (0.8) MYR/USD 3.2 (1.6) 0.3 CPO (1mth) 2,497.0 (5.0) 0.2 Crude Oil (1mth) 106.5 8.2 0.4 Gold 1,319.2 9.8 0.1 TOP STOCK PICKS Buy rated large caps Price Target Tenaga 12.20 14.00 Genting Msia 4.22 4.70 HLBK 13.90 16.20 AMMB Holdings 7.15 8.50 Bumi Armada 3.52 4.55 IJM Corp 6.69 7.20 MPHB Capital 2.08 2.42