[Maybank Kim Eng] Today's Research - Malaysia

01 Oct 2015, Thursday

g Sector Research - Malaysia Banking: A pick-up in Aug loan growth | Desmond Ch'ng - Malaysia Property: Lackluster outlook | Wei Sum Wong g Macro Research - Malaysia: Money Supply, August 2015 - Driven by business loans | Suhaimi Ilias - Malaysia: Technicals - A 3Q15 window dressing rise | Lee Cheng Hooi - Malaysia: Other News - | Malaysia Research Team

MY: Malaysia Banking Recommendation: Neutral Desmond Ch'ng (603) 2297 8680 desmond.chng@maybank-ib.com Sector Note: A pick-up in Aug loan growth §  Annualized Aug 2015 industry loan growth surprised with a faster pace of 8.2% vs 7.2% in July. §  Growth in working capital lines positive, but bears further monitoring for trend sustainability. §  NEUTRAL on the sector; BUY BIMB, HL Bank, HLFG. MY: Malaysia Property Recommendation: Neutral Wei Sum Wong (603) 2297 8679 weisum@maybank-ib.com Sector Note: Lackluster outlook §  Developers turning more cautious/negative – cuts in sales targets, delays in new launches, and rescission of land deals are the order of the day. §  Sector lacks strong re-rating catalysts. Our strategy remains a defensive one. Maintain NEUTRAL. Top pick – SPSB. MY: Money Supply, August 2015 Suhaimi Ilias (603) 2297 8682 suhaimi_ilias@maybank-ib.com Zamros Dzulkafli (603) 2082 6818 zamros.d@maybank-ib.com Economics Research: Driven by business loans §  Money supply (M3) growth increased in Aug 2015 on extension of credit to private sector §  As business loans growth gained amid the on-going slowdown in household loans §  Narrow money supply (M1) growth – and transactions by local credit card holders – picked up in Aug 2015, suggesting resilient consumer spending MY: Technicals Lee Cheng Hooi (603) 2297 8694 chenghooi.lee@maybank-ib.com Technical Research: A 3Q15 window dressing rise §  FLBHD - On a very strong upward Wave 3 and 5 move. §  FBMKLCI – A 3Q15 window dressing rebound rise. §  Supports of 1,595 and 1,618 may be areas to nibble. §  Resistances of 1,621 and 1,650 will cap rebounds. §    MY: Other News Malaysia Research Team Economics Research: Outside Malaysia —   E.U: Euro area’s inflation rate unexpectedly turned negative in September —   Germany: Unemployment unexpectedly rose in September —   U.K: House-price growth accelerated in September, according to Nationwide Building Society —   U.K: Economy regains recession losses as wealth increases —   China: Eases mortgage requirement as economic slowdown worsens Malaysia —   Oil & Gas: Petronas mulls refinery upgrades for Euro-5 production —   Malakoff: No notification on renewal of PPA —   Maybank: Completes sale of PNG assets