Malaysia Daily, Maybank KE (2015-06-05)

Daily 05 June 2015 RESULTS PREVIEW Berjaya Auto: Maintain Buy Small speed bump in 4Q earnings  Shariah-compliant Weaker-than-expected vehicle sales and associate�s contribution to cause a temporary blip in earnings. Cut FY15 earnings by 6% from lower vehicle sales, fine-tune FY16/17 earnings by -3% each on stronger MYR:JPY forex. Reiterate BUY with lower TP of MYR4.90 (-10sen, ex-bonus TP: MYR3.50), pegged to unchanged 12.5x CY16. Click here for full report » Technicals Further downside expected The FBMKLCI declined 7.69 points to 1,741.48 yesterday, while the FBMEMAS and FBM100 also closed lower by 25.35 points and 26.27 points, respectively. We recommend a �Sell on Rallies� stance for the index. Trading idea is a Take Profit call on PARKSON with downside target areas at MYR1.80 & MYR1.56. Click here for full report » Other Local News Dayang Enterprise: Gets MYR250m job from Petronas Carigali. Dayang Enterprise Holdings wholly-owned subsidiary Dayang Enterprise Sdn Bhd has been awarded a two-year contract for the provision of facilities improvement project (FIP) by Petronas Carigali Sdn Bhd. The FIP contract is for Petronas Carigali's Sarawak operations offshore and Sabah operations offshore. The contract effectively begins on June 8, 2015 and will expire on June 7, 2017. (Source: The Edge Financial Daily) AirAsia X: Rights issue oversubsribed. AirAsia X, which saw its directors forgo their fees in taking responsibility for making losses in its first year of operations after listing, had its 15-sen a piece rights issue oversubscribed by 14.91%. The long-haul low cost carrier has made six consecutive quarters of losses and seen its share price plunge 78% since its initial public offering. Its eight directors decided to forgo director's fees amounting to MYR434,658 at its AGM yesterday. (Source: The Sun Daily) Khazanah: MYR100m sustainable Sukuk prices at 4.3%. Khazanah Nasional's MYR100mil seven-year sustainable and responsible investment Sukuk was fully subscribed and it was priced at 4.3% per annum. The Sukuk would be issued via a Malaysian incorporated independent special purpose vehicle, Ihsan Sukuk. This issuance was under Ihsan's MYR1bil Sukuk programme, the first of its kind approved under the Securities Commission's Sustainable and Responsible Investment Sukuk framework. CIMB Investment Bank is the sole lead arranger and sole lead manager, and Amanie Advisors Sdn Bhd and CIMB Islamic Bank are the joint Shariah advisors for the deal. (Source: The Star) Outside Malaysia U.K: Property prices fell marginally in May, according to a report that predicted the shortage of homes for sale will push up values in the coming months. The average cost of a home fell 0.1% MoM from April, when it jumped 1.6%, mortgage lender Halifax, a division of Lloyds Banking Group Plc, said. House prices were 6.9% YoY higher than in May 2014 at GBP 196,067 (USD 300,000.). (Source: Bloomberg) France: Unemployment rate dropped for the first time in more than a year as the economy began to revive with the help of low oil prices and monetary stimulus. The unemployment rate fell to 10.3% in the first quarter from 10.4% in the previous three months, national statistics office Insee said. Excluding France's overseas territories, the rate fell to 10% from 10.1%. The drop is among the indications that France is experiencing its first sustained recovery since President Francois Hollande came to power three years ago. (Source: Bloomberg) Greece: Defers IMF payment as Merkel says resolution far away. Greece became the first country to defer a payment to the International Monetary Fund since the 1980s as its game of brinkmanship with creditors goes down to the wire. With Prime Minister Alexis Tsipras getting ready to address parliament after receiving a list of creditors' demands, the step underscores the state of the country's shriveling finances. While international officials have reported some progress in recent days, German Chancellor Angela Merkel said "we're still far from reaching a conclusion." (Source: Bloomberg) Singapore: Worst souring loans since 2009 show Asian contagion. Singapore's worst souring loans in six years are adding to signs Southeast Asian borrowers are buckling under pressure from slowing Chinese economic growth and rising U.S. interest rates. Banks in Southeast Asia's biggest finance center have placed 2.3% of their lending books in a "special mention" category, the first signal that a company may struggle to repay, the highest since 2009. Thai banks have allocated 2.8%, the worst in four-and-a-half years, while Indonesia has the most non-performing loans since the start of 2012. (Source: Bloomberg) Singapore: Homebuyers to seek bargains on discounts disclosure. Singapore homebuyers will drive harder bargains in an already depressed housing market as new rules that require developers to disclose discounts and other perks unmask the actual value of properties for sale. Starting Friday, the Urban Redevelopment Authority will publish weekly net prices on home transactions that will take into account incentives and rebates, such as those for stamp duties, to improve transparency. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,741.5 (1.1) (0.4) JCI 5,095.8 (2.5) (0.7) STI 3,345.0 (0.6) (0.1) SET 1,490.9 (0.5) 0.6 HSI 27,551.9 16.7 (0.4) KOSPI 2,072.9 8.2 0.5 TWSE 9,348.6 0.4 (2.2) DJIA 17,905.6 0.5 (0.9) S&P 2,095.8 1.8 (0.9) FTSE 6,859.2 4.5 (1.3) MYR/USD 3.698 5.7 0.4 CPO (1mth) 2,293.0 0.1 1.1 Crude Oil (1mth) 58.0 8.9 (2.7) Gold 1,176.9 (0.6) (0.7) TOP STOCK PICKS Buy rated large caps Price Target Tenaga Nasional 13.38 16.00 Axiata 6.29 7.60 Genting Malaysia 4.18 4.60 Gamuda 5.00 6.00 SP Setia 3.35 4.07 MBM Resources 3.45 4.20 Inari Amertron 3.44 4.05 Vitrox 3.45 4.05