Affin Daily Insight (LV) - 19 September 2014 - TIMBER / BANKING / ECONOMY - BUDGET 2015 PREVIEW / ECONOMY - OPR / ECONOMY - ASEAN OUTLOOK / DMR

Top Calls

Sector Update � Timber (NEUTRAL, maintain) - Timber ASP remains firm but weakness seen in CPO Following the recent 5-11% cut to Affin�s 2014-16 CPO ASP assumptions due to inventory build-up, we lowered Jaya Tiasa�s FY15-17E EPS by 5-18% and Ta Ann�s FY15-16E by 12-17%. This resulted in TP cuts for Jaya Tiasa by 12% and 10% for Ta Ann. With a lacklustre outlook for plywood and CPO, we maintain our Neutral sector view. Ta Ann and WTK remain our top picks.

Other Calls

Sector Update � Banking (NEUTRAL, maintain) - No OPR hike. BNM to keep tab on balance of risks

Economy � Budget 2015 Preview - Budget proposals for long term economic sustainability

Economy - OPR - BNM kept its overnight policy rate unchanged at 3.25%

Economy - ASEAN Outlook - Weekly Wrap (12 - 18 Sep 2014) - Recovery in Spore's NODX in August unlikely to sustain

Debt Market Research - Less hawkish MPC, OPR held at 3.25% but open to another hike, interim buying to emerge

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