Affin Hwang Capital Daily Insight (LV) - 21 January 2015 - KLCI / AXREIT / TIMBER & PLANTATION / ECONOMY - FISCAL POLICY

Top Calls

Strategy � KLCI (OVERWEIGHT, maintain) - Not in a crisis In announcing amendments to Malaysia�s Budget 2015, the Prime Minister said he believes Malaysia is not in a crisis. The economy should remain healthy, with 2015E GDP growth of 4.5-5.5%, a current account surplus, and an improved 2015E fiscal deficit of 3.2% of GDP vs. 2014E. The cut in the 2015 oil price assumption should be mitigated by lower operating expenses, although development expenditures are unchanged. We retain our forecasts and end-15 KLCI target of 1,820.

Other Calls

Company Update � Axis REIT (BUY, maintain) - Still optimistic

Flash Note � Timber (NEUTRAL) / Plantation (NEUTRAL) - Sarawak floods: Impact on operations not serious so far

Economy � Economic Update � Fiscal Policy - Malaysia addresses economic challenges and deficits

Morning News & Market Summary

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