FW: RHB FIC Rates & FX Market Weekly - 30/4/18

 

 

 

FOMC Meeting In Focus, But No Surprise Expected

 

Highlights

 

Global Markets

¨   A heavy calendar awaits investors in the week ahead in the US as the Fed reconvenes, the US Treasury unveils its debt issuance plan while a plethora of economic data are released (Core PCE, personal income & spending, jobs report, ISM surveys…).  On the monetary policy front, we expect the Fed to leave rate unchanged but we believe the bank will continue to pave the way for an additional fourth FFR hike in 2018 in line with the March meeting. Consequently, Treasury yields are likely to push higher although we still eye a convincing break above 3% on the 10y while the return of the positive rates/USD correlation should send the greenback higher; 92.00 on the DXY being the next resistance. Then with the needs of new financing post tax-reform and additional spending, we expect the US Treasury to ramp up borrowing for this quarter. As of March, c.USD460bn of debt was already issued (USD537bn in total for 2017) and the total amount for 2018 is likely to be well above USD1tn. As the Fed unwinds its balance sheet, this combination of factor will exert even further upward pressure on rates while it could materialise as a risk for the Dollar given deteriorating deficit yet at a later stage.

¨   In Europe, all eyes will be on the growth picture with the release of GDP for 1Q18 expected to print at 2.6% compared to 2.7% in 4Q17. The first quarter economic data disappointed indicating a likely cooling-off effect from a steep multi-month expansion. However a disappointing print would weigh further on the Euro unless April PMIs indicate an invigorating economy and inflation ticks higher; we still eye 1.20 as the next support for the EURUSD. In the UK, expect global developments to drive UK assets’ gyrations as well as the release of April PMIs; remain neutral GBP.

¨   In Japan, PMIs are also due and could temporarily drive sentiment. However the JPY remains susceptible to global, and US, developments. The USDJPY pair could face again upward pressures although the 110 resistance is likely to cap the rise in the short term; remain neutral JPY. Over in Australia, investors eagerly await RBA’s updated assessment on the economy. Despite core inflation coming in stronger over 1Q18, we think RBA may hold back on its optimism, given marginally disappointing headline inflation and some softening in the labour markets recently. A monthly private inflation gauge due prior to the RBA meeting may attract some attention as well. Overall, we prefer to remain neutral AUD at this stage.

 

AxJ Markets

¨   Over in China, the usual set of Chinese PMIs will be closely scrutinized by investors for hints of global growth trajectory; another set of healthy prints will affirm the strong global growth story. Investors’ attention will also be focused on PBoC liquidity operations and CNY movements in the week ahead, with implications for the broader AxJ sentiment; stay neutral CNY.

¨   Moving on, expect a relatively quiet week in Singapore with only PMI prints due.  SGD will likely take cues from the activity indicator in the week ahead, although the outcome of the FOMC meeting remains the major catalyst stay neutral SGD.

¨   With only March trade data due in the week ahead, expect Malaysian assets to take cues from key global market developments, particularly as US Treasuries continue to test the 3.00% psychological level; stay neutral MYR. Last but not least, Indonesian watchers will be keen to focus on April inflation data, with BI recently warned that inflation may pick up given the weaker IDR, and possibly compounded by higher energy prices. While headline inflation remains near the bottom of BI’s 3-5% target range, a surprise beat may exacerbate policy tightening pressure on the central bank; stay neutral IDR at this juncture.

  

Weekly Positioning

 

	Rates	FX
Overweight
Mild Overweight
Neutral	UST, GILT, Core EGBs, ACGB, SGS, CGB, MGS, IndoGB	USD, EUR, GBP, AUD, JPY, THB, SGD, MYR, IDR, CNY
Mild Underweight	ThaiGB
Underweight	JGB

 

 

FW: Credit Market Watch: Summary for week ending 27-Apr

 

 

Dear all,

 

Credit Market Watch: Summary for week ending 27-Apr

·        MYR Credit:

Ø  MGS yields were driven higher by bearish bond sentiment and stronger USD but managed to recoup slightly after the strong showing in 10y GII auction. MGS yields largely higher by 2-10bps WoW, with the 10y yield up 8bps WoW. Corporate bond yields, which usually lag the move in MGS, moved 3-8bps higher WoW and had MYR1.9b traded volume.

Ø  MKD Kencana sold MYR1.3b of GG bonds to fund the Special Border Economic Zone in Kedah. The MYR850m 5y tranche was priced at a final yield of 4.33% while the MYR450m 7y tranche yielded 4.47%. Al-Aqar raised MYR243m, comprising MYR220m 3y Class A (rated AAA) and MYR23m 3y Class B (rated AA2) notes which were priced at 4.64% and 4.95% respectively.

Ø  QSP Semenanjung: MARC sees no immediate rating action in regards to the construction delay as TNB has extended the scheduled CODs for all three solar power plants to 31 Mar 2018 from end-Dec 2017. QSP may be seeking for a second extension with a later COD date if the first one is not met. MARC does not expect the completion delay to significantly impact project FSCR and any cost overrun would be borne by the sponsor. For near term liquidity, the agency opines QSP has sufficient cash buffer, sponsors’ support and ability to defer final EPC payment.

Ø  Macro: Malaysia’s external reserves surged USD2.2b in the first two weeks of April to USD110b, the highest level since end-Feb 2015, on the back of export earnings repatriation and corporate inflows, reckon from O&G sector following Saudi Aramco’s investment in RAPID. External reserves now cover 7.7x of retained imports and 1.1x of ST external debt (end-Mar: 7.4x; 1.1x).

Ø  Relative value: AA-rated BEWG 2023 trading at 5.19%, which is 12bps wider than our fitted AA2/AA line and appears to offer value relative to AA3-rated Tadau Energy 2023 which dealt at 5.07%.

·        Asian Credit:

Ø  UST curve bear-flattened along the 2y10y, as 2y yield rose 3bps while the 10y was unchanged at 2.96%. 10y UST yield breached the 3-handle in the middle of last week but managed pull back later, erasing early losses. 1Q18 GDP in the US expanded by 2.3%, a slowdown from 2.9% in 4Q17 but beat Bloomberg consensus of 2.0%.

Ø  In Asian USD credit, market tone remained cautious. Spreads were generally wider, with JACI composite +3bps, JACI IG +1bp while high-yield segment underperformed with JACI HY +11bps WoW. The sovereign space was weighed by concerns over the weakening of Rupiah, which prompted Bank Indonesia (BI) to step up intervention and reinforcement of its commitment to financial market stability. INDON and INDOIS led losses for sovereign, rising by about 10-15bps WoW, PHILIP were 3-10bps higher, while CHINA, KOREA and MALAYS fared better, between flat to 5bps higher in yields WoW.

Ø  Rating changes: Lippo Karawaci’s ratings were downgraded to B2 (from B1) by Moody’s and to B- (from B) by S&P, reflecting Lippo Karawaci’s tight liquidity with weak operating cash flow and low cash buffer in the face of high interest expense and debt repayment in 2019. Its financial flexibility is also constrained as its fixed charge coverage ratio has fallen below the min 2.0x threshold under the USD bond indenture. Both rating agencies placed negative outlooks on the ratings premised on uncertainty in the execution and timeliness of Lippo Karawaci’s planned asset sales to address repayment and liquidity risks.

·        CDS: EM Asia CDS saw mixed movements in spreads. Indonesia 5y CDS spread widened by 7bps WoW as the Rupiah was under pressure on portfolio outflow risk. Other countries were relatively stable, with Korea -2bps, China –1bp, Malaysia and Philippines rose 1bp while Thailand was unchanged WoW.

 

 

Regards,

 

Winson Phoon, ACA

(65) 6231 5831

winsonphoon@maybank-ke.com.sg

 

Se Tho Mun Yi

(603) 2074 7606

munyi.st@maybank-ib.com

 

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FW: RHB | Singapore | M3 Eases In March, Loans Stay On Upward Trend

 

 

 

Economic Research			30 April 2018
Singapore
Economic Update
M3 Eases In March, Loans Stay On Upward Trend   Singapore’s M3, including Asian currency units, eased to 3.1% YoY in March, from a +5.8% rise in the month before. The stronger growth of both public and private credit at 4.4% and 3.4% YoY, respectively, was not enough to offset the slower growth in net foreign position.   Economist: Ahmad Nazmi Idrus  | +603 9280 2179
To access our recent reports please click on the links below: 26 April: IPI: Stellar Semicon Growth But Weakness Persists 23 April: March Inflation Eases To 0.2% YoY 17 April: NODX Falls 2.7%, EP NODX Disappoints 13 April: 1Q GDP At 4.3% On Manufacturing Boost, MAS Hawkish 29 March: Loans Growth Continues Upward Trend 26 March : Factory Production Slows In February
Economics Team
Arup Raha	Group Chief Economist	arup.raha@rhbgroup.com		+65 6232 3896
Peck Boon Soon	Chief ASEAN Economist	bspeck@rhbgroup.com		+603 9280 2163
Vincent Loo Yeong Hong	Malaysia, Vietnam	vincent.loo@rhgroup.com		+603 9280 2172
Ahmad Nazmi Idrus	Singapore	ahmad.nazmi.idrus@rhbgroup.com		+603 9280 2179
Rizki Fajar	Indonesia, Philippines	rizki.fajar@rhbgroup.com		+6221 2970 7065
Aris Nazman Maslan	Malaysia, Vietnam	mohd.aris.nazman@rhbgroup.com		+603 9280 2184

 

 

FW: AAM News: Invesco's Asia quarterly AUM up 1.7%, net inflow from region highest in over a year

 

 

 

If you cannot view this mail please click here.   Latest News  |  Magazine  |  Events  |  Best of the Best Awards  |  E-Magazine   Latest News 30 April 2018 Invesco's Asia quarterly AUM up 1.7%, net inflow from region highest in over a year Financial Reporting: Net inflows from Asian investors totaled US$1.3 billion in January-March 2018, the most since the fourth quarter of 2016   PE Panorama: Healthscope bid is a rinse and repeat by PE Private Equity: BGH Capital-led bid comes after Healthscope was acquired by a consortium of funds in 2010, delisted, and relisted in 2014 Read More Unlocking China's vast bond market may be top capital markets story in next decade Fixed Income: As Beijing pulls down the barriers, ripple effects of internationalisation will be significant for foreign holdings in Chinese bonds Read More Malaysian regulator may issue robo adviser licences by mid-year Regulations: Securities Commission Malaysia may issue two or three licences initially, but may not cap the overall number Read More Monthly Top Ten Singapore's GIC and The Carlyle Group buy AkzoNobel unit Amundi renames its Taiwan unit KIC taps IMF's Heenam Choi for CEO post CAIA launches pilot programme for CFA members Taiwan's BLF appoints seven managers for domestic ESG mandate M&A, strategic tie-ups seen in asset management, PwC survey finds Asset allocation for more challenging markets ahead Nippon Life commits US$94 million to fintech venture fund AAM new product roundup PE Panorama: Remington bankruptcy renews focus on PE's public image woes   Coming Up         As per the Guidance on Direct Marketing issued by the Office of the Privacy Commissioner for Personal Data in Hong Kong which took effect on April 1, 2013, we would like to inform you that we intend to continue sending you promotional emails such as newsletters, new promotions and product updates. If you do not wish to receive such emails, please contact us at news@asiaasset.com. For enquiries please contact us at (852) 2547-7331.

 

 

FW: CIMB Fixed Income Daily - 30 Apr 2018 - Bonds gain strength; targeting 3x10 MGS bull steepener

 

 

CIMB Fixed Income Daily - 30 Apr 2018 - Bonds gain strength; targeting 3x10 MGS bull steepener

 

US Treasuries strengthened after finding its way up to 3.03% and bargain hunting interest was sparked. The coming will see release of important macroeconomic data; including non-farm payrolls (consensus +195k for April against +103k in March), ISM indices, durable goods and PCE inflation, and FOMC meeting as well. There’s only 34.2% probability imputed by futures trading for a rate hike at this week’s FOMC, but we reckon cautious mood could spur 10T back to above 3.00% quite easily. Still, we think support remains at 3.05%.

 

Last Friday, first reading for 1Q18 GDP was +2.3% qoq, which exceeds 2.0% Bloomberg consensus, but well below +2.9% 4Q17. The GDP price deflator rose 2.0% after it was +2.0 after rising 2.3% in 4Q17.

 

Malaysian Government Securities (MGS) weakened on a weekly basis though there was very strong demand on Friday as US Treasuries saw recovery after rising above the psychological 3.00% level mid-week, which prompted bargain hunting interest. By Friday, the 10y MGS was heard around 4.16% after seeing weekly high of 4.21%. At 4.16% meant the 10y MGS rose by 11bps on a weekly basis and the highest since October.

 

Meantime, the late demand flowed into the auction of the new 10y Islamic GII (Government Investment Issue) (GII maturing October 2028, or GII Oct’28). The RM4.0 billion auction saw incoming bids totalling RM10.8 billion, giving a bid-to-cover ratio of 2.70 times. However, the auction’s average profit rate was 4.34% or much higher than the 4.06% yield at the prior 10y securities auction this year, being the 10y MGS, held in February, and with bid-cover of 2.066 times. The strong auction demand for GII Oct’28 was welcomed news in contrast to only a week before when the auction of new 5y MGS (MGS Apr’23) received weak demand at bid-to-cover ratio of 1.563 times.

 

Our view is that MGS yields should come down further from the elevated highs. The recent surge in yields, and not just in Malaysia but in emerging Asian bond markets as well, came alongside weak US Treasuries and US dollar strength. We expect US Treasuries to hold steady near 3.00% in the short to medium term as higher UST yields than currently should require stronger incoming macro data especially inflation. In fact, weak inflationary outlook is what’s driving a flat US curve right now, the flattest since before the global financial crisis of 2007/2008. Our views on 3y and 10y MGS fair value for 3Q18 are 3.55% and 4.05% respectively (see Fixed Income Navigator report published on 16-Mar-2018). Relative value suggests overweight 3y versus 10y MGS for a bullish steepener, or targeting 3x10 MGS spread of 50bps against 42bps seen late Friday.

 

Thailand bonds moved with US Treasuries sentiment, raised demand for Thai govvies to end high at the last trading day of the week. Thai bond curve was in a bull-flattening mode with outperformed long-ends with bids for LB316A and LB326A, and LB366A down 2-4bps. Next watch is April Thai CPI. If Thai CPI rises tepidly below 1.00% yoy in April, foreign sell-off in Thai bond will slow and cap an up-move in USD/THB. 

 

IndoGBs continued to strengthen Friday on the back of stronger UST. We started seeing some offshore inflows especially for tenors up to 10y. Yields fell 9bps across the curve including the strongest for FR63 by -14bps. Volume decreased to IDR21.3t.

 

CIMB Treasury & Markets Research-Fixed Income
Tel: +603 2261 8557 | Fax: +603 2261 8705
www.cimb.com
Find us on Bloomberg at CIMR <Go>

 

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FW: AmBank Research - Ann Joo Resources: Sales remain robust, but cost pressure mounts BUY, 30 Apr 2018

 

 

STOCK FOCUS OF THE DAY

Ann Joo Resources: Sales remain robust, but cost pressure mounts         BUY

 

We cut our FY18-20F earnings forecasts by 18%, 20% and 13% respectively, trim our FV by 20% to RM3.55 (from RM4.34), but maintain our BUY call. The earnings downgrade is largely to reflect a weaker sales volume growth of 2% in FY18F (from 5% previously) and higher input costs throughout FY18-20F. Our FV is based on 10x revised FY18F EPS, in line with the average of its three midcycles’ PE multiples during Jan’12–Sep’13, Jun’05–Jun’08 and Sep’10 till now.

 

We came away from a recent visit to Ann Joo feeling cautious on the company’s prospects especially in FY18. The company has highlighted that its FY18 performance would not be as robust as expected largely due to the lower-than-expected sales volume for its long product (i.e. construction steel). On a brighter note, the company remains upbeat in 2H18 and beyond as it expects demand for steel construction to pick up strongly on the back of the “full rollout” of infrastructure projects and a modest growth in the property segment.

 

Others :

UMW Holdings: UMW buys another 6 months                                                   HOLD

 

 

 

QUICK TAKE

Plantation Sector: News flow for week 23 – 27 April                                         NEUTRAL

 

 

RETAIL RESEARCH

Stocks On Radar: Borneo Aqua Harvest, Luxchem, AirAsia Group, Globetronics Technology

     

 

NEWS HIGHLIGHTS

Globetronics Technology: Explains why it is splitting shares

Hock Seng Lee: Steps up work on mega projects

Uzma: Secures contract from Petronas Carigali

 

 

 

DISCLAIMER:

The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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FW: [Maybank IB] Today's Research - Malaysia

 

 

FEATURED CALLS Malaysia | Malaysia Plantations Brace yourself for MFRS impact Chee Ting Ong COMPANY RESEARCH TSH Resources | New MFRS 116 impacts negatively Chee Ting Ong SECTOR RESEARCH Malaysia Oil & Gas | Crude oil: Up, up and away? | POSITIVE Thong Jung Liaw MACRO RESEARCH Regional | ASEAN Equities: Rebound is Imminent Nik Ihsan Raja Abdullah NEWS Outside Malaysia COMPANY RESEARCH Malaysia TP Revision TSH Resources (TSH MK) by Chee Ting Ong Share Price: MYR1.29 Target Price: MYR1.42 Recommendation: Hold New MFRS 116 impacts negatively With the adoption of the revised MFRS 116 wef 1 Jan 2018, we estimate TSH is likely to raise its yearly plantation depreciation charges by MYR30m p.a, and revise downwards its shareholders' fund by -29%. We lower our FY18-20 EPS forecasts by -15%/-13%/-11% to reflect the new MFRS. We believe recent price weakness has largely priced in the negatives. TSH remains a HOLD with a lower TP of MYR1.42 (previously MYR1.65) on unchanged 19x FY18 PER (about 1SD below its 5-year mean). FYE Dec (MYR m) FY16A FY17A FY18E FY19E Revenue 872.3 1,073.5 1,127.9 1,135.2 EBITDA 155.2 249.9 251.4 265.2 Core net profit 69.2 100.8 103.5 119.4 Core EPS (sen) 5.1 7.4 7.5 8.6 Core EPS growth (%) (8.3) 43.7 1.3 15.4 Net DPS (sen) 2.0 2.0 1.8 2.1 Core P/E (x) 25.1 17.5 17.2 14.9 P/BV (x) 1.2 1.7 1.6 1.5 Net dividend yield (%) 1.6 1.6 1.4 1.6 ROAE (%) 2.9 9.0 10.0 10.2 ROAA (%) 2.1 3.2 3.5 3.9 EV/EBITDA (x) 26.2 14.7 12.8 11.9 Net debt/equity (%) 84.1 110.4 101.5 89.1 Chee Ting Ong    (603) 2297 8678    ct.ong@maybank-ib.com Amirah Azmi    (603) 2297 8769    amirah.azmi@maybank-ib.com SECTOR RESEARCH MY: Malaysia Oil & Gas Crude oil: Up, up and away? | POSITIVE by Thong Jung Liaw Sector Note We posit that the geopolitical supply risk (instability in Middle East and unrest in Venezuela) could trigger volatility in the oil market, leading to oil price potentially overshooting above USD80/bbl and put the sector to be back in the limelight in the interim. We reiterate our POSITIVE view for the sector. Our three key BUYs are Dialog, Yinson and SAPE. Thong Jung Liaw    (603) 2297 8688    tjliaw@maybank-ib.com MY: Malaysia Plantations Brace yourself for MFRS impact by Chee Ting Ong Sector Note Most Malaysian listed planters will need to comply with MFRS 116 and 141 this year. A few large cap planters have "early" adopted them and the impact had been a mix bag. For the rest of the stocks under our coverage, we believe TSH will be most impacted. Its upstream assets is presently valued at MYR30,800/ha, double its peers. We lower TSH's TP and FY18-20E EPS by -11% to -15%, but retained our HOLD call. We maintain NEUTRAL on the sector with selective BUYs on IOI, GENP, SOP. Chee Ting Ong    (603) 2297 8678    ct.ong@maybank-ib.com MACRO RESEARCH RN: Regional Traders' Almanac ASEAN Equities: Rebound is Imminent by Nik Ihsan Raja Abdullah Technical Research MSCI AC ASEAN (PR) USD Index (MXSO) staged a pullback last week but the magnitude was steeper than expected. The index violated our initial target of 866.00, hitting a low of 855.53. That said, the candles continue to hold on above the 61.8% Fibonacci Retracement level of 848.00, suggesting that the bias remains bullish. Nik Ihsan Raja Abdullah    (603) 2297 8694    nikmohdihsan.ra@maybank-ib.com Tee Sze Chiah     (603) 2082 6858     szechiah.t@maybank-ib.com NEWS Outside Malaysia: E.U: Sounds trade-war alarm as Trump points gun 'at our head'. The European Union warned about the costs of a trans-Atlantic trade war while bracing for one to erupt after the U.S. signaled it will reject the bloc's demand for an unconditional waiver from metals-import tariffs. Donald Trump's administration is asking Europe, Canada and other allies to accept quotas in exchange for an exemption from steel and aluminum tariffs that kick in May 1, when a temporary waiver expires. This puts the EU in the difficult position of either succumbing to U.S. demands that could breach international commerce rules or face punitive tariffs. Forcing governments to limit shipments of goods violates World Trade Organization rules, which prohibit so-called voluntary export restraints. The demand is also contrary to the entire trade philosophy of the 28-nation bloc, which is founded on the principle of the free movement of goods. The White House last month temporarily shielded some trading partners including the EU from the duties, at 25% for imported steel and 10% for aluminum on the grounds of protecting national security. (Source: Bloomberg) U.K: British businesses are feeling upbeat about the economy, according to a Lloyds Bank survey. Just over half said they were more optimistic about the economy than they were three months ago. Nevertheless, the balance expecting stronger trading fell, the report published showed. The survey of 1,200 companies was carried out between March 29 and April 18. Figures showed the economy registered its worst performance since the end of 2012 in the first quarter. The retail sector had the weakest level of confidence, Lloyds said, as adverse weather in the first quarter hit sales. A separate survey from the Confederation of British Industry showed private-sector output rising at its slowest pace since 2016 in the latest three months, with consumer firms "particularly weak," reflecting the pressure on incomes from inflation. (Source: Bloomberg) China: Steel industry posts lower profits for 1Q 2018. China's iron and steel industry made total profits of CNY56.9b in 1Q 2018, lower than the fourth quarter of last year, state-run Xinhua News Agency reported, citing data from China Iron and Steel Association. Steel prices fell about CNY1,000 per metric ton in the first quarter, but rebounded slightly in April. If prices can not exceed CNY4,000 per metric ton in May and June, steel companies are unlikely to report higher profits for this year, Xinhua cited CISA's Secretary General Liu Zhenjiang as saying. (Source: Bloomberg) Southeast Asia: Leaders agree to fast track regional trade pact. Southeast Asian leaders agreed to work intensively toward an agreement by the end of this year on plans to create what could potentially be the world's biggest trading bloc. Attempts to advance the so-called Regional Comprehensive Economic Partnership were a key talking point at a summit of the Association of Southeast Asian Nations that concluded in Singapore. If ever fully achieved, the partnership would include the 10 Asean nations as well as China, India, Japan, South Korea, Australia and New Zealand, and cover one third of world's economy and almost half its population. While the pact doesn't seek to impose higher standards in areas such as labor and environmental protection, like the 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership signed earlier this year, consensus is proving elusive. A major obstacle is India's requirement that any agreement to reduce tariffs on goods and services should allow for free movement of people, something India wants for its highly skilled information technology sector. (Source: Bloomberg) : Auto: Perodua CEO hopes talks will not impact its partnership with Daihatsu. Perusahaan Otomobil Kedua Sdn Bhd's president and CEO Datuk Dr Aminar Rashid Salleh said he hopes that the talks between UMW Holdings and MBM Resources will not have any negative impact on the partnership between Perodua and its technological partner Daihatsu Motor Co Ltd. He was commenting on The Edge Financial Daily's report entitled "Concerns on Perodua's technology partner unfounded, says CEO" that was published last Friday. The report quoted Aminar as saying that "there should not be any concerns on Daihatsu. I'm sure the shareholders can sort the issues out among themselves. For us at Perodua, it is still business as usual and whatever the shareholders decide, we will respect their decision". Aminar clarified what he meant by those comments in a statement yesterday— that he hopes that the talks between UMW and MBMR will not have any negative impact on the partnership between Perodua and Daihatsu. (Source: The Edge Financial Daily) MISC: Allocates USD4b for capex. The company has allocated USD4b in capex over the next five years with the aim of securing more floating production storage and offloading (FPSO), and shuttle tankers projects. Its FPSO segment is grouped under offshore business and shuttle tankers comes under the petroleum and product shipping segment. According to the president and CEO, Yee Yang Chien, USD500m would be set aside for potential FPSO and shuttle tanker contracts yet to be secured this year. Yee also said 30% of the capex would be funded from equity and 70% from bank borrowings. The LNG segment contributed the majority of the company's earnings followed by the offshore business. (Source: The Sun Daily) Petronas Dagangan: Syed Zainal is the new MD/CEO. The company will have Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir as its new managing director and CEO. The company said in a statement yesterday that he will assume the posts with effect from June 1. He takes over from Datuk Mohd Ibrahimnuddin Mohd Yunus who is resigning as the managing director and CEO due to the staff mobility within the Petronas Group. (Source: The Sun 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. 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