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| | | SECTOR RESEARCH | | | | | | Stability finally?
by Chi Wei Tan |
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| | | | | | We are NEUTRAL on the sector. We expect mobile revenue (Big 3) to revert back to a slight growth in 2018 after four consecutive years of decline. Risk-reward for the big-cap telcos remains largely balanced for now, with no major mispricing apparent, in our view. On a relative basis, our preferred stock among the big-caps is Axiata (HOLD, TP: MYR5.50). | |
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| | MACRO RESEARCH | | | | | | Fund flows & Lookouts
by Chew Hann Wong |
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| | | | | | Dec 2017 saw foreign funds returning with a net buy of e.MYR0.9b, which lifted their full-year 2017 net buy position to e.MYR10.6b. We expect foreign interests to be high in early-2018, ahead of GE14. Alongside our forecast for continuing high domestic participation, we expect this to drive volatility in equities. We make no change to our end-2018 KLCI target, thematics and maintain our top stock BUY list. | |
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| | | | | | FBMMES Index: In A Bullish Tone
by Nik Ihsan Raja Abdullah |
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| | | | | | FBMKLCI rose 10.09pts to 1,792.79 yesterday, led by gains in blue chip stocks like SIME, ASTRO and AMM. Market sentiment was bullish with gainers outpacing losers by 771 to 305. Volume was markedly higher with 5.11b shares worth MYR3.67b changed hands. With Wall Street closed at record highs and positive spillover from pre-election play, local stock market is expected to extend its gain today. Technically, we expect the benchmark index to trade between 1,790 and 1,800 today. | |
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| NEWS | | | Outside Malaysia:
U.S: Manufacturing expanded in December at the fastest pace in three months, as gains in orders and production capped the strongest year for factories since 2004, the Institute for Supply Management said. Factory index climbed to 59.7 (est. 58.2) from 58.2 a month earlier; readings above 50 indicate expansion. Gauge of new orders advanced to 69.4, the highest in nearly 14 years, from 64. Measure of production increased to 65.8, the strongest since May 2010, from 63.9. (Source: Bloomberg)
Germany: Jobless rate fell to a record low as the number of people out of work slid for a sixth month, reflecting a boom in Europe's largest economy that could push up wages and inflation. The jobless rate was 5.5% in December, and the previous month's rate was revised down to the same level, the Federal Labor Agency said. The number of unemployed plunged by 29,000 last month, more than twice as much as the median estimate in a Bloomberg survey of economists. (Source: Bloomberg)
China: Seen raising money market rates three times this year. China's central bank will make modest increases in money-market rates in 2018 as it aims to keep up the pressure on deleveraging and prevent too much divergence with U.S. policy, according to a Bloomberg survey. The People's Bank of China is seen raising interest rates on reverse-repurchase agreements by five basis points three times this year, starting in the first quarter, the survey shows. That would raise the rate - now at 2.5% – more slowly than last year, when policy makers lifted it by five basis points in December after two 10 basis-point hikes in the first quarter. (Source: Bloomberg) | |
| | | | | Other News:
My EG Services: Launches employer-foreign worker matching service. My EG Services' which has rechristened its wholly owned subsidiary Ipidato Dot Com S/B to My E.G Jobs S/B, will also be providing a job matching and placement service to match Malaysian employers with foreign workers. The group's board of directors said that it has launched the new service which will be undertaken by My E.G Jobs on January 3. This service complements the company's other existing foreign worker-related services, including the online renewal of work permits and the rehiring programme as well as the respective online renewal of foreign worker insurance. (Source: The Sun Daily)
Kerjaya Prospek: Proposes 6-for-5 bonus issue. The group has proposed a bonus issue of up to 677.44m new shares on the basis of six bonus shares for every five existing shares held. The group is also issuing up to 169.36m new warrants on the basis of six bonus warrants for every 20 Kerjaya Prospek shares held. Upon completion of the proposals, the enlarged share capital of Kerjaya Prospek on a fully diluted basis will amount to 1.41b shares. (Source: The Edge Financial Daily)
TDM: Receives Terengganu land for expansion plan. The group has accepted a total of 4,515ha of land offered by the Terengganu state government for its domestic plantation expansion plan. The company said its existing land bank in Terengganu stands at 31,848ha. Following the acceptance of the lands from the state government and the proposed acquisition of a controlling stake in Ladang Rakyat Terengganu S/B, TDM's total land bank in the state will rise to 47,830ha.(Source: The Star)
Aturmaju Resources: Proposes capital reduction in bid to cut losses. The group has proposed a reduction of its share capital to help improve its financial position and cut accumulated losses. The group plans to reduce its capital from MYR61.1m to MYR6.72m, giving rise to a credit of MYR54.38m. It said, this will be utilised to set-off the company's and group's accumulated losses of approximately MYR53.8m and MYR47.3m, respectively, based on the audited financial statements of the company for the financial year ended Dec 31, 2016. (Source: The Edge Financial Daily) | |
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