Malaysia Daily, Maybank KE (2015-03-18)

Daily 18 March 2015 COMPANY UPDATE Sunway REIT: Maintain Hold Awaiting next catalyst Strong earnings contribution from the re-opening of Sunway Putra Mall by 4QFY6/15 likely priced-in. Sunway Pyramid Mall will remain as the key income generator, mitigating lower earnings from its offices. Awaiting next earnings catalyst from its sponsor�s strong pipeline; maintain HOLD with an unchanged TP of MYR1.50. Click here for full report » ECONOMICS Singapore Exports Feb'15 Sharp drop on seasonal factor Non-oil Domestic Exports (NODX) contracted by -9.7% YoY in Feb 2105 after three consecutive months of expansion. Both electronics and non-electronics contracted during the month as the Lunar New Year festivities fell in Feb 2015. Our full-year forecast is a 2%-3% NODX growth this year (2014: -0.7%). Click here for full report » Technicals A miniscule rebound The FBMKLCI advanced 7.33 points to 1,787.87 yesterday, while the FBMEMAS and FBM100 also closed higher by 33.96 points and 37.15 points, respectively. We expect weak nibbling at the supports of 1,770 to 1,787, whilst very heavy liquidation activities cap all rebounds at the resistances of 1,789 and 1,808. Trading idea is a Short-Term Buy on HIL with upside target areas at MYR1.07 & MYR1.35. Stop loss is at MYR0.81. Click here for full report » Other Local News Aviation: flymojo to take to Malaysian skies in 3Q. Malaysia's aviation market will see the launch of "flymojo", a new privately-held airline in the third quarter of this year, which will be based out of the Senai International Airport in Johor and Kota Kinabalu in Sabah. Fly Mojo Sdn Bhd yesterday signed a letter of intent with Bombardier Commercial Aircraft to buy 20 CS100s for USD1.5b (MYR5.5b) with an option for an additional 20 CS100s, with each plane seating up to 125 people and its first delivery is expected next year. The airline will be closer to a full-service carrier and will start operations using three leased aircraft. (Source: The Edge Financial Daily) Transportation: BRT-Sunway Line 88% completed. The MYR634m Bus Rapid Transit (BRT) Sunway Line project is now 88% complete as at March 3 and is on track to be completed on June 9 this year according to Prasarana Malaysia. Group managing director, Azmi Abdul Aziz mentioned that the fare structure is yet to be finalized as it is still in discussion with the Land Public Transport Commission (Spad). He also mentioned Spad has identified other possible BRT lines to be developed in areas in the Klang Valley but investment cost of the future lines are unknown at the current time. (Source: The Edge Financial Daily) Tanjung Offshore: Minorities lodge police report. A group of 23 minority shareholders of Tanjung Offshore who collectively hold more than 6% of its shares has filed a police report citing irregularities in the company's filing with Bursa Malaysia in March 2014 and January 2015. This is with regards to the GBP6.7m (MYR36.67m) deal with Cross Space Securities Ltd to acquire full ownership of Wavenet Investments Ltd (UK). (Source: The Edge Financial Daily) Outside Malaysia U.S: Home starts slump in February as bad weather holds back builders. Work began on 897,000 houses at an annualized rate, down 17% from January and the fewest in a year, the Commerce Department reported. (Source: Bloomberg) E.U: European car sales rose at the fastest rate in 11 months as a strengthening economy, lower fuel prices and dealer discounts encouraged purchases of vehicles made by the likes of Volkswagen AG and BMW AG. Registrations climbed 7% YoY to 958,100 vehicles, the Brussels-based European Automobile Manufacturers' Association, or ACEA, said. The gain in February was the biggest since a 10.4% YoY jump in March 2014. (Source: Bloomberg) Germany: Investor confidence in March increases less than forecast as uncertainty over Greece's future in the euro area countered optimism over an improving economic outlook. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, climbed to 54.8 from 53 in February. While that's the highest since February 2014 and the fifth month of increases, it fell short of the 59.4 median forecast in a Bloomberg News survey. (Source: Bloomberg) Japan: The Bank of Japan kept its record stimulus unchanged, even as it warned that cheaper energy prices will bring inflation to a halt in the world's third-largest economy. The BOJ maintained a pledge to expand the monetary base at an annual pace of JPY 80t (USD 660b). While it said consumer price gains will slow to about zero percent "for the time being," the central bank stuck to its view that the economy will continue a moderate recovery. (Source: Bloomberg) Indonesia: Bank Indonesia left its main interest rate unchanged after a surprise cut last month, supporting the central bank's stated stance of keeping monetary policy tight. Governor Agus Martowardojo and his board kept the reference rate at 7.5%, Bank Indonesia said. The central bank also held the rate it pays lenders on overnight deposits, known as the Fasbi, at 5.5%. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,787.9 (4.2) 0.4 JCI 5,439.2 27.3 0.1 STI 3,370.0 6.4 (0.2) SET 1,512.8 16.5 (0.2) HSI 23,901.5 2.6 (0.2) KOSPI 2,029.9 0.9 2.1 TWSE 9,539.4 10.8 0.3 DJIA 17,849.1 7.7 (0.7) S&P 2,074.3 12.2 (0.3) FTSE 6,837.6 1.3 0.5 MYR/USD 3.693 12.7 (0.3) CPO (1mth) 2,149.0 (18.2) (2.7) Crude Oil (1mth) 43.5 (55.8) (1.0) Gold 1,154.4 (3.9) (0.2) TOP STOCK PICKS Buy rated large caps Price Target Tenaga Nasional 14.68 16.00 Sime Darby 9.26 10.20 Genting Malaysia 4.14 4.60 Gamuda 5.17 6.00 Westport 3.58 3.80 SP Setia 3.37 4.07 AFG 4.76 5.30 Hartalega 8.03 8.50 Inari 3.27 3.95 MBM Resources 3.28 4.20 Vitrox 3.27 4.05