| | 
| |
| | | MACRO RESEARCH | | | | | | Growth continues but slower
by Chew Hann Wong |
|
|
|
| | | | | | Aggregate core net profit of our research universe grew 2.7% YoY in 1Q18. Our 2018 KLCI/research universe core earnings forecasts are lowered by -1.3%/-1.7% respectively, and we now expect KLCI/universe core earnings to grow a slower +1.8%/+6.8% in 2018 (vs. +3.1%/+8.1% previously). We continue to peg a 16.0x PER on 12M forward earnings to derive our revised end-2018 KLCI target of 1,840 (vs. 1,880 previously). | |
| |
| | | | |
| | | | | | ASEAN Equities: Attempt to Escape from the Bear
by Nik Ihsan Raja Abdullah |
|
|
|
| | | | | | The technical rebound that we anticipated last week lasted for only two days amid continued turmoil on geopolitical worries and renewed trade war concerns. Technically, ASEAN markets (MXSO Index) are still trapped in a downtrend channel as the candles have failed to swing back above the 10-day WMA line and its middle Bollinger Band. At present, MXSO Index is also showing a similar pattern but if history were to repeat itself, there is a good chance that market could perform better in June. | |
| |
| | | | |
|
| NEWS | | | Outside Malaysia:
U.S: Allies push Trump for change of heart as trade war looms. President Donald Trump changes his mind often enough that the closest U.S. allies and some adversaries hope he'll do just that on tariffs in the next few days. If not, an all-out trade war may become unavoidable. Trump is headed for a showdown with America's allies at a Group of Seven summit this week in Quebec, with the European Union and Canada threatening retaliatory measures unless he reverses course on new steel and aluminium levies. China meanwhile is warning it will withdraw commitments it made on trade if the president carries out a separate threat to impose tariffs on the Asian country. (Source: Bloomberg)
China: Opens Europe charm offensive as Trump stokes trade dispute. China is reaching out to Europe with pledges to improve market access for companies in a charm offensive that contrasts with President Donald Trump's escalation of trade disputes worldwide. China's ambassador to the European Union, Zhang Ming, has been touring EU institutions to promote President Xi Jinping's message delivered to the Boao Forum in April of a "new phase of opening up." That translates into new opportunities for European companies in finance, clean energy and environmental cooperation, Zhang said. "Some European friends say that though the current system works, it is not fair enough," Zhang told the European Parliament's International Trade Committee on April 23. "China is always ready to listen to the EU's suggestions on how to make the system better." (Source: Bloomberg)
Philippines: Duterte leaves to congress fate of tax law blamed for inflation. Philippine President Rodrigo Duterte said he will let lawmakers decide what to do with a tax law that his administration lobbied for and is now being partly blamed for rising prices. "The law was enacted by Congress, I leave it to Congress to decide whether or not to amend, suspend or modify the law," Duterte said in a speech in Manila before leaving for South Korea. Duterte said there was nothing he could do if lawmakers decide to keep the law that will help fund its PHP8.4tr (USD160b) infrastructure program. The tax reform, which took effect in January, imposed excises on oil products, raised levies on sugary drinks and automobiles and cut personal income taxes. Incremental revenue from the measure is estimated at PHP82.3b this year, Finance Secretary Carlos Dominguez said in December. (Source: Bloomberg)
Crude Oil: Holds losses as U.S. rig count rises, funds cut bullish bets. Oil held losses after the number of rigs searching for American shale rose to the highest level since 2015 and as hedge funds cut bullish bets on crude. The number of rigs targeting oil in the U.S. rose by 2 to 861, the highest since March 2015, according to Baker Hughes data. Hedge funds reduced their net-long positions in West Texas Intermediate crude while shorts jumped to the highest level since November, according to the U.S. Commodity Futures Trading Commission. Brent futures for August were USD76.57/bbl. (Source: Bloomberg) | |
| | | | | Other News:
UEM Edgenta: Bags two contracts worth RM60.75m. Its wholly owned subsidiary Opus International (M) Bhd has bagged two contracts worth MYR60.75m from Borneo Highway PDP S/B (BHP), via related party transactions. UEM Edgenta told Bursa Malaysia that Opus had entered into contracts with regards to the Pan Borneo Highway project in Sabah. (Source: The Sun Daily)
Econpile: Bags MYR20.5m contract from KL Gateway. The group has bagged a MYR20.5m contract to undertake piling and substructure works for the development of a 41-storey service apartment known as Block H of KL Gateway (Phase 2) project off Jalan Kerinchi, Kuala Lumpur. (Source: The Edge Financial Daily)
MyEG: Govt ends MyEG's rehiring programme. My E.G lauded the final deadline announcement for the Foreign Workers Rehiring Programme by the Home Ministry, saying that it will mean employers and foreign workers dragging their feet to pay government levies, will now do so. Following the cessation of the programme, Home Minister Tan Sri Muhyiddin Mohd Yassin said all services related to the employment of foreign workers will be conducted by the Immigration Department and no extension will be given to the three vendors. (Source: The Sun Daily) | |
| |
| | | | | Disclaimer | | | This email and its attachment(s) are confidential and are intended solely for the use of the individual to whom it is addressed. Any views or opinions expressed are solely those of the author and do not necessarily represent those of Maybank Kim Eng or any of its affiliates. Intended recipients of this email are prohibited from disseminating, forwarding, printing and/or copying its contents. If you are not the intended recipient of this email, you are strictly prohibited to take any action based upon them, which also includes dissemination, forwarding, printing and copying of its contents. Maybank Kim Eng Research sent this e-mail to you because your Notification Preferences indicate that you want to receive information about our daily research reports. If you wish to read Disclaimer in details, please click HERE. | | | To unsubscribe or change preference settings, please contact your representative HERE. | | | | |
|
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.