Malaysia Daily, Maybank KE (2015-03-20)

Daily 20 March 2015 RESULTS REVIEW Eco World Development: Maintain Buy Stronger earnings ahead  Shariah-compliant 1QFY10/15 net profit of MYR3.1m was in line. ECW remains confident of its MYR3b sales target for FY10/15. Maintain earnings forecasts. Post-rights TP is MYR2.06 (on 0.73x P/RNAV, pre-placement and warrants). HOLD. Click here for full report » Technicals A rebound towards 1,815 and 1,831 The FBMKLCI advanced 11.56 points to 1,809.13 yesterday, while the FBMEMAS and FBM100 also closed higher by 72.32 points and 71.28 points, respectively. We expect some nibbling at the supports of 1,790 to 1,809, whilst some liquidation activities may cap rebounds at the resistances of 1,815 and 1,831. Trading idea is a Short-Term Buy on PHARMA with upside target areas at MYR6.34 & MYR7.35. Stop loss is at MYR5.38. Click here for full report » Other Local News Property: Forest City resumes but GDV shrinks 25% to MYR450b. Country Garden Pacificview Sdn Bhd, on environmental pressure has reduced the scale of the mega project, which initially spanned 1,977.7ha, by 30%. Executive director said the reason for reducing the scale of the project, which is to be entirely built on four separate reclaimed islands, is to preserve sea grass at the development site. Also, works on Forest City project will recommence, with its completion due in 2045. (Source: The Edge Financial Daily) O&G: Petronas says USD5b (MYR18.35b) bond issue for capex, possible M&A. Petronas said it is keen to maintain a comfortable cash balance to enable it to proceed with important projects and pursue synergistic M&A strategies. Petronas gave no details. It�s cash holding amounted to USD39b, while borrowings amounted to USD9.9b as at end of 2014. (Source: The Edge Financial Daily) Automotive: Total industry volume to hit 700,000 units this year, MAI. The Malaysian Automotive Institute (MAI) expects a higher total industry volume (TIV) of 700,000 units for this year, driven by consumer demand for cars. CEO of MAI also said that "the GST should stimulate demand for vehicles by reducing prices with the abolishment of the Sales and Services Tax". In 2014, Malaysia's car industry recorded a total TIV of 656,000 units. (Source: The Sun) Dialog: Seeks nod to raise MYR2.65b for Pengerang expansion. Dialog Group, which mooted the Pengerang Deepwater Terminal project, is seeking shareholders' approval at its EGM on April 3 to raise up to MYR2.5b to take part in the next few phases of its development. The Pengerang Deepwater Terminal is one of the main catalysts in the development of the country�s largest petrochemical complex, that is Pengerang Integrated Petroleum Complex (PIPC). Dialog is now eyeing two projects part of the Pengerang Deepwater Terminal: the Pengerang Terminal Phase 2 and Pengerang LNG projects. (Source: The Star) Eco World: Liew redesignated as Eco World non-executive chairman. This did not come as a surprise to many as Liew has been said to be driving force behind the group. Eco World president and CEO said that Liew's position in Battersea would not give rise to any conflict of interest in his new role. (Source: The Edge Financial Daily) Outside Malaysia U.S: Economic outlook retreats from four-year high. Americans' outlooks for the U.S. economy dimmed in March from a four-year high as feeble wage gains and harsh winter weather weighed on sentiment. The Bloomberg Consumer Comfort Index's monthly economic expectations gauge fell to a three-month low of 51.5 from a February reading of 54 that was the strongest since January 2011. In contrast, the weekly sentiment measure improved to a one-month high of 44.2 in the period ended March 15 from 43.3. (Source: Bloomberg) U.S: Jobless claims little changed in payroll survey week. Fewer than 300,000 Americans filed applications for unemployment benefits for a second week, signaling the labor market remains resilient even as the economy shows signs of slowing. Jobless claims rose by 1,000 to 291,000 in the seven days ended March 14, from a revised 290,000 in the prior period, a Labor Department report showed. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,809.1 (3.1) 0.6 JCI 5,453.9 27.6 0.8 STI 3,386.2 6.9 0.7 SET 1,532.1 18.0 0.0 HSI 24,468.9 5.0 1.4 KOSPI 2,037.9 1.3 0.5 TWSE 9,736.7 13.1 0.9 DJIA 17,959.0 8.3 (0.6) S&P 2,089.3 13.0 (0.5) FTSE 6,962.3 3.2 0.2 MYR/USD 3.708 13.2 0.0 CPO (1mth) 2,210.0 (15.9) 0.7 Crude Oil (1mth) 44.0 (55.3) (1.6) Gold 1,171.2 (2.5) 0.3 TOP STOCK PICKS Buy rated large caps Price Target Tenaga Nasional 14.58 16.00 Sime Darby 9.30 10.20 Genting Malaysia 4.20 4.60 Gamuda 5.15 6.00 Westport 3.71 3.80 SP Setia 3.38 4.07 AFG 4.71 5.30 Hartalega 8.20 8.50 Inari 3.27 3.95 MBM Resources 3.27 4.20 Vitrox 3.40 4.05