Malaysia Daily, Maybank KE (2014-04-07)

Daily	07 April 2014
COMPANY UPDATE Petronas Gas: Maintain Hold Not as accretive as expected  Shariah-compliant For gas processing, the higher reservation charge in the 5th GPTA is largely offset by lower fees for liquid by-products. While not significantly earnings-accretive from the previous, the revenue profile is now more stable. Maintain HOLD, with a higher TP of MYR23.50. Click here for full report » ECONOMICS External Trade, February 2014 Solid exports, higher trade surplus Gains in exports growth outpace imports to push trade surplus in Feb 2014 to a two-year high of MYR10.4b. Besides a relatively firmer global economy and hence external demand, exports in early 2014 benefit from low base effect as it contracted in 1H 2013 as well as from a weaker Ringgit. Given robust trade figures in Jan-Feb 2014 (Export: +12.3%, Import: +8.3% and Trade Balance: +MYR16.8b), our full-year forecasts (Export: +5.9%, Import: +8.0% and Trade Balance: +MYR61.7b) will be reviewed subsequently. Click here for full report » Technicals Malaysia seems resilient. US volatility. The FBM KLCI inched up 5.88 points WoW as some further local and foreign buying emerged last week. The index closed at 1,856.61 last Friday, as volume turned up from 1.94b to 2.33b shares traded. With the local buying that emerged recently at 1,802, we advise clients to buy at the support areas of 1,802 to 1,856. The resistance levels of 1,858 and 1,882 may see heavy profit taking activities. Trading idea is a Short-Term Buy on TITIJYA with upside target areas at MYR2.11 & MYR2.25. Stop loss is at MYR1.80. Click here for full report » Other Local News Automotive: GWM partnership to receive first EEV license. The first EEV license will be issued to Go Automobile Manufacturing Sdn Bhd (GAM), related to Naza in partnership with Great Wall Motor Co Ltd (GWM). EEV license will allow GAM to set up its own manufacturing plant and may also come attached with certain customized incentives offered by government, giving it an edge over non-EEV manufacturers. (Source: The Edge Financial Daily) Aviation: MAHB has given everything AirAsia asked for to operate at klia2. Few things on AirAsia�s wish list which MAHB could not grant were a spa and a museum said MAHB senior general manager, Datuk Azmi Murad. He also mentioned that with flight operations at klia2 beginning on May 2, and LCCT to close on May 9, AirAsia has to move. (Source: The Edge Financial Daily) MAHB: Sees up to 20,000 at klia2. It expects between 10,000 and 20,000 people to turn up at the new low-cost carrier terminal, klia2, when it opens for public viewing on April 27. Targeted volume was based on number of people who turned for the KLIA�s opening in 1998. (Source: Business Times) Alam Maritim: Plans to acquire mother ship to support deepwater push. It hopes to capture a bigger slice of the MYR2b market for underwater inspection, repair and maintenance (IRM) work with the planned acquisition of a USD80m (MYR262m) modern diving support ship. It has already identified the target vessel, which it intended to operate with a joint-venture partner. With its own ship, it will give them flexibility to improve margins, said Group Executive Director and CEO, Shaharuddin Rahmad. (Source: The Star) Outside Malaysia U.S: Payrolls rose 192,000 in March, unemployment at 6.7% as more Americans entered the labor force, showing steady progress that will prompt Federal Reserve policy makers to continue reducing stimulus while keeping interest rates low. Payrolls rose 192,000 last month after a 197,000 gain in February that was larger than first estimated, the Labor Department reported. Private employment, which excludes government jobs, surpassed the pre-recession peak for the first time. (Source: Bloomberg) Germany: Factory orders rose in February, adding to signs that growth in Europe's largest economy is gathering pace. Orders, adjusted for seasonal swings and inflation, rose 0.6% MoM from the prior month, the Federal Statistics Office said. Growth in orders for January was revised lower to 0.1% MoM from 1.2% MoM. (Source: Bloomberg) Philippines: Government plans to increase spending to more than PHP 3t (USD 67b) by 2016 as officials bolster efforts to boost economic growth to as much as 8.5%, Budget Secretary Butch Abad said. "We're making unprecedented investments in social and economic services," Abad, 59, said in an interview. "Eight percent growth is nothing. We can achieve that." (Source: Bloomberg) Vietnam: Central bank and five state-run lenders are drawing up a loan package to bolster the struggling property market and help spur economic growth. The program, worth about VND 70t (USD 3.3b), will "connect investors, contractors and suppliers in construction projects and create conditions for them to cut costs and lower prices, in order to spur sales," Nguyen Viet Manh, head of the lending department at the central bank, said. The package will be put in place "soon," he said. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,856.6 (0.6) 0.1 JCI 4,857.9 13.7 (0.7) STI 3,212.7 1.4 (0.2) SET 1,392.0 7.2 0.1 HSI 22,510.1 (3.4) (0.2) KOSPI 1,988.1 (1.2) (0.3) TWSE 8,888.5 3.2 0.0 DJIA 16,412.7 (1.0) (1.0) S&P 1,865.1 0.9 (1.3) FTSE 6,695.6 (0.8) 0.7 MYR/USD 3.3 0.1 (0.1) CPO (1mth) 2,705.0 2.9 1.1 Crude Oil (1mth) 101.1 2.8 0.8 Gold 1,303.5 8.5 1.3 TOP STOCK PICKS Buy rated large caps Price Target Tenaga 11.34 14.00 Genting Msia 4.19 4.74 HLBK 14.02 16.40 AMMB Holdings 7.22 8.50 Bumi Armada 4.01 5.00 IJM Corp 6.21 6.75 Time dotCom 3.94 4.40 MPHB Capital 1.91 2.42