Malaysia Daily, Maybank KE (2015-02-18)

Daily 18 February 2015 SECTOR UPDATE Construction, Property Shining Pearl of the Orient Construction will be the immediate beneficiary of the PTMP; winner of the PTP role to be announced by September. Properties are set to gain from the infrastructure boom over the longer term, but short-term outlook remains challenging. Maintain Overweight on Construction, Neutral on Property; top BUYs are Gamuda (MYR6.00 TP), SP Setia (MYR4.07 TP). Click here for full report » RESULTS REVIEW Petronas Gas: Maintain Hold Boosted by Kimanis tax credits  Shariah-compliant FY14 net profit was boosted by c.MYR200+m from tax credits at Kimanis. Else, net profit should have been in line. A 15sen DPS was declared, bringing FY14 DPS to 55sen, unchanged from FY13. Maintain HOLD, TP unchanged at MYR24.00; PTG remains a stock with a very stable earnings profile. Click here for full report » ECONOMICS Final 4Q 2014 & Full-Year GDP Revised upwards as expected 4Q 2014 and full-year real GDP were came in better than the advanced estimates. Nonetheless, the economy faces a cross-current of headwinds and tailwinds Cut our 2015 GDP growth forecast to +2.5% from +3.0%. Click here for full report » Singapore Exports, Jan �15 Positive beginning to 2015 NODX and NORX rose by +4.3% YoY and +12.7% YoY in Jan 2015 on higher electronics and pharmaceuticals shipments as petrochemicals exports affected by crude oil price plunge. Record trade surplus of USD8.5b as imports fell -13.4% due to the -41.8% YoY fall in oil import bills. Expect NODX to grow 2%-3% this year (2014: -0.7%) Click here for full report » Technicals Late last minute rise ahead of CNY The FBMKLCI gained 1.20 points to 1,810.09 yesterday, while the FBMEMAS closed lower by 0.30 but the FBM100 closed higher by 3.82 points. We recommend a �Range Trading� stance for the index. Trading idea is a Short-Term Buy on IFCAMSC with upside target prices of MYR1.32 & MYR1.70. Stop loss is at MYR0.99. Click here for full report » Other Local News Banking: New MD for StanChart Malaysia. Standard Chartered Bank has appointed Mahendra Gursahani as managing director and chief executive officer for Standard Chartered Bank Malaysia. He will be reporting to Standard Chartered Bank Asean CEO Lim Cheng Teck. Prior to his appointment, Mahendra was the CEO of its bank in the Philippines. (Source: The Star) AirAsia: Divests partial stake in online travel outfit. AirAsia has divested a partial stake in Singapore-based online travel outfit AAE Travel Pte Ltd to Nasdaq-listed Expedia Inc for USD86.25m (MYR306.19m). In a filing with Bursa Malaysia yesterday, the budget airline said a share purchase agreement had been signed between Expedia, Expedia Southeast Asia Pte Ltd and its wholly-owned unit AirAsia Exp Pte Ltd, to divest a total of 6.14m shares or a 25% equity interest in AAE to the Expedia group. (Source: The Edge Financial Daily) Tanjung Offshore: Should stay focused on O&G. Tanjung Offshore should remain focused on its core business, which is the oil and gas sector, its minority shareholder Tan Sri Tan Kean Soon said. The company had been expanding into property as well as mining, which was not related to its core business. Asked if the venture into other sectors was part of the group's effort to sustain its income amid falling oil prices, the veteran O&G player disagreed. (Source: The Star) Outside Malaysia U.S: Confidence among homebuilder's declines to four-month low in February as winter weather prevented some prospective buyers from touring new developments. The National Association of Home Builders/Wells Fargo Sentiment gauge fell to 55 this month from 57 in January, according to figures issued. (Source: Bloomberg) Germany: Investor confidence rises to one-year high before QE. The ZEW Center for European Economic Research in Mannheim said on Tuesday that its index of investor and analyst expectations, which aims to predict economic developments six months in advance, climbed to 53.0 from 48.4 in January. (Source: Bloomberg) Indonesia: Bank Indonesia unexpectedly cuts key rate to bolster growth. Indonesia's central bank unexpectedly cut its main interest rate for the first time in three years, joining global counterparts in easing monetary policy to support Southeast Asia's biggest economy as inflation cools. Bank Indonesia Governor Agus Martowardojo and his board lowered the reference rate to 7.5% from 7.75%. Not one of 20 economists surveyed by Bloomberg News had predicted a change. The central bank also reduced the rate it pays lenders on overnight deposits, known as the Fasbi, by 25 basis points to 5.5%. (Source: Bloomberg)     Key Indices Value YTD (%) Daily (%) KLCI 1,810.1 (3.0) 0.1 JCI 5,337.5 24.9 0.2 STI 3,415.9 7.8 (0.3) SET 1,587.8 22.3 (1.3) HSI 24,784.9 6.3 0.2 KOSPI 1,961.5 (2.5) 0.2 TWSE 9,529.5 10.7 0.0 DJIA 18,047.6 8.9 0.2 S&P 2,100.3 13.6 0.2 FTSE 6,898.1 2.2 0.6 MYR/USD 3.582 9.3 0.0 CPO (1mth) 2,286.0 (13.0) (0.8) Crude Oil (1mth) 53.5 (45.6) 1.4 Gold 1,222.1 1.6 (0.9) TOP STOCK PICKS Buy rated large caps Price Target Axiata 7.17 7.80 Tenaga Nasional 14.82 16.00 Sime Darby 9.53 10.20 Genting Malaysia 4.18 4.60 Gamuda 5.15 6.00 AirAsia 2.78 3.00 Westport 3.50 3.60 SP Setia 3.54 3.98 AFG 4.80 5.50 Hartalega 7.55 8.50