Malaysia Daily, Maybank KE (2014-09-30)

Daily 30 September 2014 RESULTS REVIEW Gamuda: Maintain Buy Proxy to infrastructure boom  Shariah-compliant Record breaking FY7/14 results were in line. Our earnings forecasts are largely unchanged after reflecting a higher stake in Kesas and lower property sales target. Maintain BUY with an unchanged RNAV-based TP of MYR5.30. Click here for full report » MARKET STRATEGY MY Strategy: Maintain Neutral September fund flows Foreigners were net sellers in September. YTD net sell has totally reverse out their net buys in 2013. No change to our market, sector and stock calls. Click here for full report » Technicals Sell into the rebound from 1,829 The FBMKLCI advanced 5.84 points to 1,846.34 yesterday, while the FBMEMAS and FBM100 also closed higher by 30.77 points and 30.51 points, respectively. We recommend a �Range Trading� stance for the index. Trading idea is a Short-Term Buy on MMSV with upside target areas at MYR0.59 & MYR0.82. Stop loss is at MYR0.45. Click here for full report » Other Local News Banking: Maybank IB, HSBC, Bank of China launch Cagamas Tiger Emas bond. Maybank Investment Bank, The Hong Kong and Shanghai Banking Corporation Ltd (HSBC) and the Bank of China Ltd ( BOC) have successfully launched Cagamas's inaugural three-year CNY1.5b Tiger Emas Bond. Maybank IB, HSBC and BOC acted as the joint lead managers and joint bookrunners for this issuance. The fixed coupon rate was 3.70%. (Source: The Star) Banking: Abu Dhabi reaches out to M'sia. The Abu Dhabi government has formally reached out to the Malaysian government expressing its concern about the Employees Provident Fund's (EPF) right to vote in the proposed merger of RHB Capital, CIMB Group Holdings and Malaysia Building Society (MBSB). Abu Dhabi's strategic investment company Aabar Investments PJSC owns a 21.2% stake in RHB Capital. (Source: The Edge Financial Daily) Aviation: Khazanah hopes for early MAS Act. Khazanah Nasional hopes the government will enact the MAS Act early next year, before a new company (NewCo) is set up in the middle of 2015 to take over the national carrier's business. Khazanah managing director Tan Sri Azman Mokhtar said the Act is an important enabling law that will facilitate the restructuring of the national carrier in a comprehensive, timely and holistic manner. Khazanah�s MYR6b recovery plan for MAS will see the airline delisted from Bursa Malaysia by year-end and a NewCo created. (Source: The New Straits Times) Outside Malaysia U.S: Consumer spending climbs as job gains boost wages. The 0.5% MoM increase in purchases was more than forecast and followed little change in July, Commerce Department figures showed. Incomes advanced, rising 0.3% MoM last month as wages and salaries climbed the most in three months. Worker pay over the past 12 months is showing its biggest gains since the end of 2012, raising the odds for improving sales at companies. (Source: Bloomberg) E.U: Economic confidence within the Euro Area diminished in September in a sign that the European Central Bank's measures to shore up the recovery have yet to bear fruit. An index of executive and consumer sentiment slipped to 99.9 in September from 100.6 a month earlier, the European Commission in Brussels said. That's the lowest since November. (Source: Bloomberg) Germany: Inflation beat economists' estimates in September as the European Central Bank prepares to implement more stimulus in the euro area. Inflation in the currency bloc's largest economy, calculated using a harmonized European Union method, was 0.8% YoY, the Federal Statistics Office in Wiesbaden said. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,846.3 (1.1) 0.3 JCI 5,142.0 20.3 0.2 STI 3,289.7 3.9 (0.1) SET 1,585.8 22.1 (0.9) HSI 23,229.2 (0.3) (1.9) KOSPI 2,026.6 0.8 (0.2) TWSE 8,960.8 4.1 (0.3) DJIA 17,071.2 3.0 (0.2) S&P 1,977.8 7.0 (0.3) FTSE 6,646.6 (1.5) (0.0) MYR/USD 3.3 0.1 0.6 CPO (1mth) 2,202.0 (16.2) 0.6 Crude Oil (1mth) 94.6 (3.9) 1.1 Gold 1,215.8 1.2 (0.2) TOP STOCK PICKS Buy rated large caps Price Target Tenaga 12.28 14.00 Axiata 6.99 7.60 Sime Darby 9.18 10.20 Gamuda 4.81 5.30 UMW O&G 3.89 5.15 AFG 5.01 5.50 Perdana Petroleum 1.81 2.55 Hock Seng Lee 1.94 2.25