Malaysia Daily, Maybank KE (2014-08-15)

Daily 15 August 2014 RESULTS REVIEW Media Prima: Maintain Hold Washout quarter MPR's 2Q14 results were below expectations � 1H14 adex at every segment fell YoY, save for two. Adex should recover in 2H14 as consumers are cajoled into purchasing durable goods before GST. Maintain HOLD but lower TP by 15% to MYR2.16. Click here for full report » COMPANY UPDATE Inari Amertron: Maintain Buy Sowing seeds for future growth  Shariah-compliant Positive on Inari's land purchase in Batu Kawan. Expect another acquisition in the near term to boost production capacity to meet Avago�s rising demand. Reiterate BUY with an unchanged MYR4.20 cum-rights TP (17x CY15 PER). Click here for full report » Technicals Inching up further The FBMKLCI rose 3.54 points to 1,861.58 yesterday, while the FBMEMAS and FBM100 also closed higher by 12.24 points and 12.34 points, respectively.We recommend a �Range Trading� stance for the index. Trading idea is a Short-Term Buy on VS with upside target areas at MYR2.29 & MYR2.57. Stop loss is at MYR1.98. Click here for full report » Other Local News MRCB: MRCB, Kwasa Land ink MX-1 deal. MRCB has sealed a firm deal with the EPF to redevelop the Rubber Research Insitutute land in Sungai Buloh, Selangor, which has a gross development value (GDV) of at least MYR8b. It is located on a 26ha site, earmarked for mixed development. MRCB will spend MYR816.6m for a 70% stake in a special purpose vehicle (SPV) company known as Kwasa Development (2) Sdn Bhd to undertake the project. (Source: Business Times, The Edge Financial Daily) AirAsia: Lower oil prices boon to AirAsia's performance. Coupled with stronger ancillary income (20% of AirAsia's total revenue), AirAsia is set to post a stronger performance in the 2H of the year. Also, Fernandes said AirAsia plans to expand the belly capacity of its aircraft to 30% from 18% and that it is about utilizing assets to bring down the cost per seat. (Source: Business Times) Astro: Says Arpu growth target intact. Astro said it is on track to achieve its target average revenue per user of MYR100 by end of FY2015, ending 31 January. The increase in take-ups for their value-added services, such as HD channels and multi-room subscription from the top end subscribers are helping them to achieve the target. (Source: The Edge Financial Daily) Outside Malaysia U.S: Jobless claims climbed more than forecast last week, interrupting a steady decline to pre-recession lows. Jobless claims climbed by 21,000 to 311,000 in the period ended Aug. 9, the highest in six weeks, a Labor Department report showed. There was nothing unusual in the data and no states were estimated, a spokesman said as the figures were released. (Source: Bloomberg) E.U: Euro-Area pickup stalls as big economies fail to grow, underlining the vulnerability of the region to weak inflation and the deepening crisis in Ukraine. Gross domestic product in the three months through June was unchanged from the first quarter, when it increased 0.2%, Eurostat, the European Union's statistics office in Luxembourg, said. In a separate report, the agency confirmed inflation at 0.4% YoY in July. (Source: Bloomberg) U.K: London house-price growth eased to the slowest in more than three years last month after new mortgage rules and Bank of England intervention put potential buyers on alert. An index of values dropped to 10 from 30 in June, the Royal Institution of Chartered Surveyors said. That's the lowest since March 2011. The report also showed that surveyors have cut their forecast for price growth. (Source: Bloomberg) S. Korea: Bank of Korea cut its interest rate for the first time in more than a year, risking inflaming record household debt as it backs government efforts to spur Asia's fourth-biggest economy. Governor Lee Ju Yeol and his board lowered the seven-day repurchase rate to 2.25% from 2.5%, the Bank of Korea said. (Source: Bloomberg) Indonesia: Bank Indonesia kept its key interest rate unchanged for a ninth straight meeting, as a persistent current-account deficit limits the scope for the central bank to ease borrowing costs to support a slowing economy. Bank Indonesia Governor Agus Martowardojo and his board maintained the reference rate at 7.5%, the central bank said. It also kept the deposit facility rate unchanged at 5.75%. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,861.6 (0.3) 0.2 JCI 5,155.5 20.6 (0.2) STI 3,294.8 4.0 (0.2) SET 1,542.0 18.7 (0.2) HSI 24,801.4 6.4 (0.4) KOSPI 2,063.2 2.6 0.0 TWSE 9,230.6 7.2 (0.0) DJIA 16,713.6 0.8 0.4 S&P 1,955.2 5.8 0.4 FTSE 6,685.3 (0.9) 0.4 MYR/USD 3.2 (3.1) (0.6) CPO (1mth) 2,166.0 (17.6) (2.2) Crude Oil (1mth) 95.6 (2.9) (2.1) Gold 1,311.0 9.1 0.2 TOP STOCK PICKS Buy rated large caps Price Target Tenaga 12.30 14.00 Axiata 6.97 7.60 Sime Darby 9.50 10.30 Genting Msia 4.31 4.70 Gamuda 4.31 5.30 UMW O&G 4.06 5.15 AFG 4.96 5.50 Perdana Petroleum 1.84 2.55 Hock Seng Lee 1.97 2.25