Malaysia Daily, Maybank KE (2014-04-29)

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	Daily 29 April 2014 COMPANY UPDATE Westports Holdings: Maintain Buy News from the West Generally positive sentiment on Westports during its recent NDR with us in the US. 1Q14 results likely to meet our and street�s estimates. Maintain BUY with unchanged DCF-based TP of MYR2.70. Click here for full report » AMMB Holdings: Maintain Buy Share sale agreement with MetLife SSA with MetLife will enhance the group's non-interest income building efforts. Sale at a decent P/BV of 3x; proceeds could bolster CET1 ratio by about 50 bps. Maintain BUY on AMMB with a MYR8.50 TP (CY14 P/BV of 1.8x supported by 14% ROE). Click here for full report » Technicals Peak seen at 1,870.89 The FBMKLCI declined by 5.24 points to close at 1,855.74 yesterday, while the FBMEMAS and FBM100 also closed lower by 38.53 points and 32.86 points, respectively. We recommend a �Take Profit� stance for the index. After the FBMKLCI broke the key 1,839.26 level, it stalled at 1,870.89 after that. Trading idea is a Short-Term Buy on TONGHER with upside target areas at MYR2.11 & MYR2.24. Stop loss is at MYR1.71. Click here for full report » Other Local News Property: PNB weighs merging property units. Under the proposed deal, PNB could pay about USD1.3b to take control of its portfolio companies Sime Darby, SP Setia and E&O and merge it with private company I&P Group Sdn Bhd. The merged entity could take the form of listed company or property trust, or could even stay private. (Source: The Edge Financial Daily) AirAsiaX: Signs MoU to secure engines from GE Aviation to power it�s 25 new Airbus A330-300. This also with an option for an additional three. With this order, GE will become AirAsia X�s second core engine supplier. The engines will be covered by a multi-year OnPointSM solution service agreement for engine maintenance, repair and overhaul. List price for the engines and the service agreement is valued at more than USD1.5b (MYR4.9b) over the life of the agreement. (Source: The Star) Sime Darby: To invest MYR98.2m in US biotech company Verdezyne. MoU has been signed for Sime Darby to take a 30% stake worth USD30m (MYR98.2m) in Verdezyne. This is in line with pursuing strategic growth area for its plantation business. (Source: The Star) Eco World: Liew to join Eco World on May 6. Tan Sri Liew Kee Sin, who will step down from his post as CEO in S P Setia tomorrow, will join the board of Eco World as director said sources. (Source: The Edge Financial Daily) Bursa Malaysia: Seeks to boost retail participation with Marketplace. It is an online platform that provides investors with market information and trading ideas, seeks to boost retail participation in the stock exchange. It hopes to draw young investors aged between 25 and 35 to the local stock market. (Source: The Edge Financial Daily) Outside Malaysia Asia: IMF says Asia must pursue structural changes amid volatility. Asian policy makers must push ahead with structural changes to ensure the region continues to lead global growth and withstand volatility as the U.S. reduces monetary stimulus, the International Monetary Fund said. Asian economies will face higher interest rates and bouts of volatility in capital flows and asset prices as global liquidity tightens amid a recovery in advanced nations, the Washington-based lender said in its Regional Economic Outlook for Asia and Pacific. (Source: Bloomberg) U.S: Pending sales of existing homes rise in March; showing residential real estate was starting to stabilize entering the spring selling season. The pending home sales index rose 3.4% MoM, the most since May 2011 and the first gain in nine months, after a 0.5% MoM drop in February that was smaller than initially reported, the National Association of Realtors said. The gauge is -7.4% YoY compared to a year earlier. (Source: Bloomberg) Russia: Putin's inner circle targeted as U.S., EU prepare new sanctions. "We will be looking to designate people who are in his inner circle, who have a significant impact on the Russian economy," Deputy White House National Security Adviser Tony Blinken said on CBS's "Face the Nation" program. "We'll be looking to designate companies that they and other inner-circle people control. We'll be looking at taking steps as well with regard to high-technology exports to their defense industry. All of this together is going to have an impact." (Source: Bloomberg) Thailand: March exports fell by -3.12% YoY; Median est. -1.4% YoY. Value of exports was USD 19.94b as agricultural products dropped by -8.2% YoY on drop in sales of rubber, shrimp and sugar. Industrial exports was up by +1.9% YoY, led by autos. By regions, exports to China fell by -11.2% YoY while that to US and Europe gained by +3.6% YoY and +2.9% YoY respectively. Ministry expects exports to grow by +5% this year, Permanent Secretary for Commerce Srirat Rastapana said at media briefing. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,855.70 -0.6 -0.3 JCI 4,818.80 12.7 -1.6 STI 3,242.70 2.4 -0.8 SET 1,411.20 8.7 0.2 HSI 22,132.50 -5 -0.4 KOSPI 1,969.30 -2.1 -0.1 TWSE 8,809.70 2.3 0.4 DJIA 16,448.70 -0.8 0.5 S&P 1,869.40 1.1 0.3 FTSE 6,700.20 -0.7 0.2 MYR/USD 3.3 -0.2 -0.1 CPO (1mth) 2,717.00 3.4 0.4 Crude Oil (1mth) 100.8 2.5 0.2 Gold 1,301.00 8.3 0.3 TOP STOCK PICKS Buy rated large caps Price Target Tenaga 11.84 14 Genting Msia 4.18 4.74 HLBK 13.98 16.4 AMMB Holdings 7.16 8.5 Bumi Armada 3.99 5 IJM Corp 6.39 6.75 MPHB Capital 1.98 2.42