Malaysia Daily, Maybank KE (2015-04-09)

Daily 09 April 2015 REGIONAL SECTOR UPDATE Regional Plantations: Maintain Neutral Pinning hope on dry weather There is a 50% chance that El Ni�o may return by mid-year, and below average rainfall is anticipated. Record soybean planting intentions by US farmers this spring will likely offset near term tight supply in palm oil. Stay NEUTRAL on the sector. Click here for full report » Technicals Index�s upside momentum is still intact The FBMKLCI declined 6.20 points to 1,850.31 yesterday, while the FBMEMAS and FBM100 also closed lower by 23.76 points and 30.50 points, respectively. We recommend a �Buy on Dips� stance for the index. Trading idea is a Short-Term Buy call on MITRA with upside target areas at MYR2.01 & MYR2.30. Stop loss is at MYR1.58. Click here for full report » Other Local News Pestech International: Bags USD437.5m Cambodian power transmission project. Pestech Internationals' 60%-owned subsidiary Diamond Power Ltd (DPL) has procured all the necessary documentation of the 230kV Kampong Cham-Kratie transmission system project in Cambodia on a build-operate-transfer basis which will have a development costs of USD92.21m (MYR335.4m) due to be completed by Nov 30, 2017. The duration and validity of the power transmission agreement and novation agreement for the implementation agreement will continue for 25 years from the scheduled commercial operation date with DPL due to receive USD12.25m per year for the first three operating years and USD18.82m from the fourth operating year until the end of term. (Source: The Edge Financial Daily) UEM Sunrise: Unveils MYR42b Gerbang Nusajaya project in Johor. UEM Sunrise has unveiled its flagship B (Zone B) parcel in Iskandar Malaysia, which has a gross development value (GDV) of MYR42b. The 4,551-acre (1,841.7ha) development will be developed over 25 years and will serve as a commercial and business engine for Nusajaya comprising developments such as the Nusajaya Tech Park, FASTrack Iskandar, Signature Residences, Gerbang Nusantara as well as lifestyle and retail parks, campus offices and residential precincts. (Source: The Edge Financial Daily) CB Industrial Product: Awarded MYR50m contract by United Plantation. It's unit Modipalm Engineering Sdn Bhd has been awarded a MYR49.8m contract from United Plantations to design, supply, fabricate, deliver to site, erect, test, commission and guarantee performance of a 60-tonne fresh fruit bunch per hour palm oil mill at Ulu Bernam. (Source: The Star) Sarawak Cable: Unit gets MYR27m job. A joint venture between Trenergy Infrastructure Sdn Bhd and PTIS Engineering Sdn Bhd has been awarded a 26.89m contract for the setting up of the 275kV AIS Tanjung Langat Industrial Estate switching station in Johor. The contract commenced yesterday. (Source: The Star) Outside Malaysia Germany: Factory orders unexpectedly fell for a second month in February in a sign Europe's largest economy is still prone to risks. Orders, adjusted for seasonal swings and inflation, fell 0.9% after a revised decline of 2.6% in January, data from the Economy Ministry in Berlin showed. Orders slid 1.3% from a year earlier. (Source: Bloomberg) Canada: Oliver announces balanced budget legislation plan. Canadian Finance Minister Joe Oliver said he plans to introduce legislation requiring balanced budgets in normal times, an election-year initiative criticized by political opponents after years of deficit spending. Oliver said the legislation would obligate governments to produce concrete time lines for returning to balance. The measure aims at shoring up the government's fiscal credibility as Canada emerges from a seven-year run of deficits totaling almost CAD150b (USD 120b), with a balanced budget due April 21. The proposed legislation would allow exceptions in times of recession or in an "extraordinary circumstance" such as natural disaster or war that boost expenses by at least CAD 3b annually. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,850.3 (0.9) (0.3) JCI 5,486.6 28.4 (0.7) STI 3,460.7 9.3 (0.1) SET 1,544.9 19.0 (0.3) HSI 26,236.9 12.6 3.8 KOSPI 2,059.3 2.4 0.6 TWSE 9,572.0 11.2 (0.7) DJIA 17,902.5 8.0 0.2 S&P 2,081.9 12.6 0.3 FTSE 6,937.4 2.8 (0.3) MYR/USD 3.630 10.8 (0.2) CPO (1mth) 2,153.0 (18.1) (1.9) Crude Oil (1mth) 50.4 (48.8) (6.6) Gold 1,202.6 0.1 (0.5) TOP STOCK PICKS Buy rated large caps Price Target Tenaga Nasional 14.56 16.00 Sime Darby 9.27 10.20 Genting Malaysia 4.36 4.60 Gamuda 5.20 6.00 Westport 4.00 4.50 SP Setia 3.43 4.07 AFG 4.77 5.30 Hartalega 8.40 8.50 Inari 3.43 3.95 MBM Resources 3.46 4.20 Vitrox 3.59 4.05