| | 
| |
| |
| | | SECTOR RESEARCH | | | | | | This present weak La Niña may end soon | NEUTRAL
by Chee Ting Ong |
|
|
|
| | | | | | The present La Niña has caused little damage to palm oil production this time. Although it did hurt Argentina's soybean prospects, CPO price has failed to be lifted thus far given its ample stockpile and recovering production prospects post 2015-16's strong El Nino. But we do expect a little more seasonal upside to CPO price as we enter low crop months in Feb-Mar 2018. We maintain our NEUTRAL call on the sector with selected BUYs on IOI (trading), SOP, and BAL. | |
| |
| | | | |
| | | | | | Jan 2018 adex: A weak start | NEUTRAL
by Samuel Yin Shao Yang |
|
|
|
| | | | | | Jan 2018 total gross adex remained suppressed (-19% YoY, -20% MoM) owing to continued soft consumer sentiment and advertisers' higher usage of digital ads at the expense of traditional ads. Our 2018 total gross adex growth forecast of +5% YoY (based on ~1x real GDP growth) is unchanged for now. Maintain NEUTRAL with HOLD calls on all stocks under our media coverage with the exception of a SELL on MPR. | |
| |
| | | | |
|
| | MACRO RESEARCH | | | | | | FBMKLCI Index – Light at the End of Tunnel
by Nik Ihsan Raja Abdullah |
|
|
|
| | | | | | FBMKLCI restarted the week in upbeat mood after surging 19.04pts yesterday led by gains in PETGAS, HLFG, AMMB and IHH. At day's end, the benchmark index closed at 1,857.32 with the broader market also in a similar mood. Gainers outpacing losers by 824 to 193 with a total of 2.35b shares worth MYR1.88b changed hands. With abating volatility, the index looks poised to move from 1,850 to 1,870 in the near-term. Downside supports now has been adjusted to 1,825 and 1,796. | |
| |
| | | | |
|
| NEWS | | | Outside Malaysia:
U.S: China holdings of debt rose in 2017 by most in seven years. China increased its holdings of U.S. Treasuries last year by the most since 2010; in a signal its demand for American debt remains resilient. The value of China's holdings of U.S. bonds, notes and bills rose by USD 126.5b to USD1.18tr in December from a year earlier, according to Treasury Department data released. China remains the largest non-U.S. holder of debt followed by Japan, whose holdings fell for the fifth straight month in December, to USD1.06tr after ending 2016 at USD1.09tr. (Source: Bloomberg)
U.S: Says Indonesia foregoing billions of dollars in investment. Indonesia is foregoing billions of dollars on offer from American companies eager to invest in Southeast Asia's biggest economy, U.S. Ambassador to Indonesia Joseph Donovan said. As the U.S. tries to arrest a deteriorating trade balance with Indonesia, which last year found itself in President Donald Trump's cross-hairs, Donovan has also rejected complaints of increasing American protectionism. Indonesia had made significant progress on macroeconomic stability, improving the business environment, education and infrastructure, yet more must be done to encourage trade as well as foreign investment, he said. (Source: Bloomberg)
Singapore: Boosts taxes to shore up revenue for aging nation. Singapore Finance Minister Heng Swee Keat announced a range of tax increases in his budget, including a surprise hike in property levies, as he seeks to shore up savings to cope with a rapidly aging population. The stamp duty on residential properties in excess of SGD1m (USD 761,600) was increased to 4% from 3%, Heng said in a speech in Parliament. The government also plans to raise the goods and services tax by 2ppts to 9% sometime from 2021 to 2025, he said. (Source: Bloomberg)
Russia: Consumer demand fares better than forecast as wages soar. Growth in Russian retail sales slowed less than forecast in January and wage gains held at the highest since 2013, a sign the economy may be moving past a slowdown late last year. Retail sales rose 2.8% YoY, compared with an increase of 3.1% YoY in December, the Federal Statistics Service said. Real disposable incomes unexpectedly didn't shrink in January for the first time in a year, while wages adjusted for inflation surged 6.2% YoY, unchanged from the previous month after an upward revision. (Source: Bloomberg)
Crude Oil: Bumps above USD62/bbl amid producer promises to support markets. The "market rebalancing has gained massive momentum" as the Organization of Petroleum Exporting Countries and its partners work to trim output, OPEC Secretary-General Mohammad Barkindo said in Nigeria. Meanwhile, United Arab Emirates Energy Minister Suhail Al Mazrouei said OPEC, Russia and other producers are looking at ways to "institutionalize" their cooperation beyond the end of this year. Brent for April settlement was USD65.73/bbl. (Source: Bloomberg) | |
| | | | | Other News:
Jaks Resources: Goes to court over bank guarantee issued to Star media. Jaks Resources is filing an injunction in the High Court to restraint the financial institutions from releasing a MYR50m bank guarantee to Star Media Group in relation to an agreement for the purchase of a piece of land in Section 13, Petaling Jaya for MYR135m. The irrevocable and on-demand bank guarantee was made as security to ensure JAKS Island Circle Sdn Bhd (JIC) – a 51%-owned unit of JAKs – completes and delivers Tower A, a 15-storey office block, to be constructed on the land, within three years from the vacant possession date or the date of approval of the plants for the tower. (Source: The Edge Financial Daily)
Rohas Technic: Bags MYR250m jobs from TNB. Its 75%-owned unit HG Power Transmission Sdn Bhd was awarded two contracts for the supply and installation of transmission lines by TNB worth a combined MYR249.63m. The first contract comprises works for 31.8km of 500kV double-circuit transmission line from transmission main intake Bentong South to TMI Lenggeng and 22.3km of 275KV double-circuit transmission line from PMU Lenggeng to PMU Mahkota Cheras. The second contract entails the supply of 31.9km of 500KV double-circuit transmission line from TMI Bentong South to TMI Lenggeng and 32km of 275 double-circuit transmission line from TMI Lenggeng to TMI Mahkota Cheras. (Source: The Edge Financial Daily) | |
| |
| | | | | Disclaimer | | | This email and its attachment(s) are confidential and are intended solely for the use of the individual to whom it is addressed. Any views or opinions expressed are solely those of the author and do not necessarily represent those of Maybank Kim Eng or any of its affiliates. Intended recipients of this email are prohibited from disseminating, forwarding, printing and/or copying its contents. If you are not the intended recipient of this email, you are strictly prohibited to take any action based upon them, which also includes dissemination, forwarding, printing and copying of its contents. Maybank Kim Eng Research sent this e-mail to you because your Notification Preferences indicate that you want to receive information about our daily research reports. If you wish to read Disclaimer in details, please click HERE. | | | To unsubscribe or change preference settings, please contact your representative HERE. | | | | |
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.