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SECTOR UPDATE
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MY Banking Sector: Maintain Neutral
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Sub-10%
loan growth in May
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- Industry
loan growth moderated further to 9.7% YoY in May from 10.0% YoY
in April.
- Non-HH
loan growth continues to be the main drag.
- Still
NEUTRAL on the sector; BUYs are AFG, AMMB, HL Bank and HLFG.
MPHB Capital is also a BUY with a TP of MYR2.54.
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COMPANY UPDATE
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RHB Capital: Maintain Hold
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Aborts
Bank Mestika acquisition
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- Mildly
positive on this move, which had been anticipated.
- Management�s
growth targets may need to be scaled back.
- HOLD
maintained, TP of MYR8.70 (P/BV 1.2x, ROE: 11.3%).
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Technicals
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Late
afternoon 2Q window dressing
The FBMKLCI inched up by 1.78 points to 1,882.71 late yesterday,
while the FBMEMAS and FBM100 gained 9.26 points and 10.07 points,
respectively. We recommend a �Buy on Dips� stance for
the index.
Trading idea is a Short-Term Buy on VITROX with upside target areas
at MYR2.68 & MYR3.30.
Click here for full report »
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Other Local News
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Construction:
MRT Corp seeks speedy Line 2 decision. MRT Corp
hopes a decision on Line 2 of the Klang Valley Mass Rapid Transit
(KVMRT) project will be made soon as it wants to immediately deploy
resources to it from Line 1, which is more than 45.6% completed as at
May 31. MMC-Gamuda JV � a 50:50 joint venture between
Gamuda Bhd and MMC Corp Bhd � was
appointed as the project delivery partner (PDP) for Line 1 in January
2011. It also won the MYR8.2b tunnelling job. Line 2 will comprise
the north-south line from Selayang to Putrajaya, while Line 3 is the
circle line that will loop around the Kuala Lumpur city centre.
(Source: Business Times)
MRCB: Wins MX-1 bid. MRCB has won the bid to develop the
much-sought after MX-1 project, earmarked to be the main town centre
of the Kwasa Damansara township in Sungai Buloh, Selangor. The MYR7b
mixed development is the first project awarded in the Kwasa Damansara
township, which is being undertaken by Kwasa Land Sdn Bhd. Property
sales from the MX-1 development must be fully completed within 12
years. (Source: Business Times)
NCB: Rubani to helm Northport. NCB Holdings Bhd yesterday
announced the appointment of Rubani Dikon as the chief executive
officer for its wholly-owned subsidiary, Northport (Malaysia) Bhd. In
a filing to Bursa Malaysia, it said the appointment is effective from
September 1. Rubani is a member of the Association of Chartered
Certified Accountants, the United Kingdom, and has served Northport
for more than 18 years. He is currently the company�s head of
finance division/company secretary. (Source: Bernama)
I-Bhd: Adopts new dividend policy. I-Bhd has adopted a new
dividend policy. The property developer aims to pay out not less than
30% of its net profit to shareholders starting from financial year
2014 ending Dec 31. Seperately. I-Bhd plans to launch properties
worth up to MYR600m a year over the next couple of years and aims to
double its property segment revenue to MYR180m by FY14. (Source: The
Edge Financial Daily)
Symphony House: To obtain nod on Ranhil RTO by year-end. Symphony
House Bhd expects to obtain the Securities Commission Malaysia�s approval
on the proposed reverse takeover (RTO) of the firm by Ranhil Energy
and Resources Bhd over the next three or four months. Under the RTO
exercise, Symphony House will become a unit of newly incorporated,
special purpose vehicle Ranhil Holding Sdn Bhd, which will be listed
in its place on Bursa Malaysia. Ranhil Holdings will facilitate the
injection of Ranhil Energy�s water and
power assets, with the issuance of new shares worth MYR800m. (Source:
The Edge Financial Daily)
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Outside Malaysia
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U.S:
Pending sales of existing homes in May rise most in four years, a sign the
residential-real estate market is rebounding after a slow start to
the year. The pending home sales index climbed 6.1%, the biggest
advance since April 2010, after a revised 0.5% increase in April, the
National Association of Realtors said. (Source: Bloomberg)
E.U: Inflation rate held steady in June at less than half the
European Central Bank's target, underscoring the challenge faced by
Mario Draghi as he tries to stoke prices and ignite growth. Consumer
prices grew 0.5% YoY, equaling May's increase, the European Union's
statistics office said. Core inflation unexpectedly accelerated.
(Source: Bloomberg)
U.K: Mortgage approvals fell in May, dropping to the lowest level
in 11 months, and the cost of new borrowing increased, adding to
evidence that the property market may be cooling. Approvals declined
to 61,707 from 62,806, the Bank of England said. The BOE also said
the effective interest rate on new mortgages rose six basis points to
3.13%, the highest since August. (Source: Bloomberg)
Japan: Corporate mood weakens on sales tax in challenge for Abe.
Sentiment among large Japanese manufacturers deteriorated more than
forecast following an April sales-tax hike, increasing the challenge
for Prime Minister Shinzo Abe in stoking a rebound. The Tankan index
was at 12 in June, dropping from 17 in March, a Bank of Japan
quarterly report showed. (Source: Bloomberg)
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Key Indices
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Value
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YTD
(%)
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Daily
(%)
|
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KLCI
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1,882.7
|
0.8
|
0.1
|
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JCI
|
4,878.6
|
14.1
|
0.7
|
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STI
|
3,255.7
|
2.8
|
(0.5)
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SET
|
1,485.8
|
14.4
|
0.2
|
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HSI
|
23,190.7
|
(0.5)
|
(0.1)
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KOSPI
|
2,002.2
|
(0.5)
|
0.7
|
|
TWSE
|
9,393.1
|
9.1
|
0.9
|
|
|
|
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DJIA
|
16,826.6
|
1.5
|
(0.1)
|
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S&P
|
1,960.2
|
6.1
|
(0.0)
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FTSE
|
6,743.9
|
(0.1)
|
(0.2)
|
|
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MYR/USD
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3.2
|
(2.0)
|
(0.1)
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CPO (1mth)
|
2,448.0
|
(6.8)
|
(0.8)
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Crude Oil (1mth)
|
105.4
|
7.1
|
(0.3)
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Gold
|
1,327.3
|
10.5
|
0.8
|
|
|
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TOP STOCK PICKS
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Buy rated large caps
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Price
|
Target
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Tenaga
|
|
12.18
|
14.00
|
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Genting Msia
|
|
4.20
|
4.70
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HLBK
|
|
13.80
|
16.20
|
|
AMMB Holdings
|
|
7.12
|
8.50
|
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Bumi Armada
|
|
3.40
|
4.55
|
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IJM Corp
|
|
6.70
|
7.20
|
|
MPHB Capital
|
|
2.15
|
2.42
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