Friday, April 15, 2016

Affin Hwang Capital Daily Insight (LV) - 15 April 2016 - RUBBER PRODUCTS / ECONOMY - ASEAN OUTLOOK

Top Calls

Sector Update Rubber Products (NEUTRAL, maintain)

- Stretched year ahead

Over the past month, the rubber products sector (ex-Karex) has underperformed the KLCI amid concerns of margin compression due to Ringgit strength and the rally in commodity-input costs. Global glove demand should underpin volume growth supported by capacity expansion plans, but declining ASPs and forex trend reversals are risks to our earnings. For sector exposure, we recommend investors tread selectively and reaffirm our BUY on Top Glove for its attractive valuation and improving efficiencies. Maintain NEUTRAL sector view.


Other Calls

Economy ASEAN Outlook Weekly Wrap

- Singapore decided to stop SGD appreciation path



For important disclosures, please refer to the Disclosure section at the end of the individual linked research reports.

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