Malaysia Daily, Maybank KE (2015-01-19)

Daily	19 January 2015
SECTOR UPDATE Malaysia Oil & Gas: Maintain Overweight Currency & Debt A stronger USD/MYR favours rigs, floaters, tank terminal and shipbuilding operations but works against companies with USD borrowings and revenue in MYR. Gearing levels generally manageable but impairment could affect a few companies due to low oil price and immobilization of assets. Values have emerged, positioning ahead of recovery; Yinson, BArmada, Dialog and Perdana are key BUYs. Click here for full report » ECONOMICS Singapore Exports, Dec'14 Wrapped up 2014 on a positive NODX - and NORX - ended 2014 on positive notes as YoY growth in both accelerated in Dec. Still, full-year NODX shrank by -0.7%. We expect NODX to rebound by 2%-3% in 2015 on moderate global growth pick up despite challenging external demand landscape and domestic structural issues. Click here for full report » Technicals A shaky start to January 2015 The FBM KLCI gained 11.13 points WoW to close at 1,743.57, as some local nibbling activities persisted. Volume fell from 1.93b to 1.36b shares. With the plunge from the 1,896.23 high to the low of 1,671.82, we advise clients to trade with the stipulated support and resistance zones. Trading idea is a Take Profit call on TAMBUN with Downside target areas at MYR 1.56 & MYR0.85. Click here for full report » Other Local News Sarawak: Hit by severe floods. 1,023 flee to relief centres as state issues 'orange' alert. The Meteorological Department has issued an "orange" alert warning for heavy rain until today over Kuching, Kota Samarahan, Mukah, Simunjan and Limbang. (Source: The Star) IFCA: No slowing down for IFCA in FY15. IFCA, an enterprise software solutions provider sees China, Indonesia and Malaysia driving its revenue growth. China would lead the way as it plans to open 10 new sales offices there and double the market�s contribution to the group�s revenue in FY15 to MYR60m. (Source: The Edge Financial Daily) Uzma: Wins MYR50m Petronas job. Uzma bagged a contract from Petronas Carigali Sdn Bhd to provide through tubing downhole tools and services. The two-year contract is effective from Jan 1, 2015 to Dec 31, 2016 with an extension option of one year from Jan 1, 2017 to Dec 31, 2017. (Source: The Star) Minetech Resources: To finalise its property venture by end-January. Minetech is seeking a waiver from making a mandatory general offer from the Securities Commission Malaysia persuant to its proposed acqusition of Glamour Heights Sdn Bhd for MYR27.45m and expects to finalise due diligence process by end of this month. It has always been our ultimate aspiration to be a property develiper in addition to being a contractor, said Minetech Resources. (Source: The Edge Financial Daily) Outside Malaysia U.S: Consumer-sentiment jump eases spending concern. The University of Michigan preliminary consumer sentiment index for January rose to an 11-year high of 98.2 from a final reading of 93.6 the prior month, according to a report Friday. Other figures from government agencies in Washington showed consumer prices fell and manufacturing output cooled. (Source: Bloomberg) U.S: China treasury holdings in Nov 2014 decline as Japan's rise to record. China's holdings of U.S. government debt declined in November for a third straight month, reaching the lowest level since January 2013, as Japan's jumped to a record. China, the largest foreign holder of Treasuries, had USD 1.25tr as of November, USD 2.3b less than a month earlier, according to Treasury Department data. Japan, the second biggest, moved to within USD 8.9b of China's lead, increasing its ownership by USD 19.1b to USD 1.24tr. (Source: Bloomberg) Denmark: Rejects speculation it will quit Euro peg after SNB move. Denmark's government dismissed speculation it could take similar steps to the Swiss National Bank and abandon its currency peg after the nation's commercial banks were bombarded by calls from hedge funds. The Danish currency peg "is secure," Economy Minister Morten Oestergaard said in an emailed reply to questions. Danske Bank A/S said Friday it had received several requests from offshore investors including hedge funds asking how Denmark is likely to respond to the SNB's shock move after the krone appreciated to its strongest since mid-2012. SEB AB, Scandinavia's biggest currency trader, said it had fielded similar calls. Both banks have sought to quash talk of Denmark abandoning its three-decades-old peg, arguing the Nordic country's currency regime can't be compared with the temporary framework created by the Swiss in 2011. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,743.6 (6.6) (0.1) JCI 5,148.4 20.5 (0.8) STI 3,300.7 4.2 (1.1) SET 1,517.7 16.9 (0.4) HSI 24,103.5 3.4 (1.0) KOSPI 1,888.1 (6.1) (1.4) TWSE 9,138.3 6.1 (0.3) DJIA 17,511.6 5.6 1.1 S&P 2,019.4 9.3 1.3 FTSE 6,550.3 (2.9) 0.8 MYR/USD 3.559 8.6 (0.1) CPO (1mth) 2,348.0 (10.7) (1.1) Crude Oil (1mth) 48.7 (50.5) 5.3 Gold 1,258.2 4.7 0.7 TOP STOCK PICKS Buy rated large caps Price Target Axiata 7.07 7.60 Sime Darby 9.40 10.20 Genting Malaysia 4.02 4.60 Gamuda 5.02 6.00 Westport 3.32 3.60 SP Setia 3.35 3.98 AFG 4.80 5.50 Hartalega 7.01 8.50