.png)
INVESTMENT RESEARCH
Malaysia
Private companies controlled by Genting Bhd (GENT MK, Buy, TP: RM5.30) chief executive officer Tan Sri Lim Kok Thay’s family disposed of a 9.5% stake in Genting Singapore plc, the proceeds of which may be used by the family to invest in MGM Mirage’s Macau casino. The 9.5% stake was placed out for a total of S$658.71m (RM1.59bn) of at S$0.72 each, which was at a 16.7% discount to the closing price on Tuesday. (Financial Daily)
* * * * *
Telekom Malaysia Bhd (T MK, Buy, TP: RM4.90) signed a sale and purchase agreement with AmMortgage One Bhd, a wholly-owned subsidiary of AmBank (M) Bhd, for the sale of its employees’ residential loans. TM said the residential loans would be sold to AmMortgage One with the first series of the sale having an outstanding principal value of RM348.9m. AmMortgage One will issue medium term notes to raise sufficient proceeds to satisfy the purchase consideration of the first series of the mortgage assets from TM. (Financial Daily)
* * * * *
KNM Group Bhd (KNMG MK, Sell, TP: RM0.67) said there are signs demand is picking up after a crude-price rally triggered a revival of exploration projects. "Our guys are becoming busy again," managing director Lee Swee Eng said in a phone interview on Tuesday. "Not busy taking orders, but busy starting to discuss. Customers are starting to restart their projects." It's not clear now long it will take for these new oil and gas exploration proposals to translate into new contracts, Lee said. He declined to disclose the value of KNM's order book, which in March was at RM3.9bn. (BT)
* * * * *
Tenaga Nasional Bhd (TNB MK, Hold, TP: RM7.00) is expected to issue the tender document for the submarine transmission line by year-end, said chief financial officer Datuk Izzaddin Idris. He said that the bids were expected to be very competitive given that metal prices are at their lows in the current times. Aluminium and copper, which are the main metals used, are much cheaper than before. (StarBiz)
* * * * *
YTL Corp Bhd’s (YTL MK, Buy, TP: RM8.00) wholly-owned subsidiary YTL Hotels & Properties Sdn Bhd has entered into a sale and purchase agreement with Vun Vui Heung and Melinda Voon Ching Mee to acquire 80% of the issued and paid-up capital of Borneo Island Villas Sdn Bhd for RM77.5m cash. Upon completion of the proposed acquisition, Borneo Island will become an 80% owned subsidiary of YTL Hotels & Properties and indirect subsidiary of YTL Corp. (StarBiz)
* * * * *
IGB Corp Bhd is in talks with 10 parties on developing hotels in Vietnam, China, Thailand and Australia. Group managing director Robert Tan said the development might be in the form of joint venture, asset management or to wholly-own the entity itself. The hotels will carry the brand of either St Giles or Cititel but no deals have been closed at the moment. (StarBiz)
* * * * *
Dutch Lady Milk Industries Bhd expects 2009 to be challenging year as the current economic slowdown continues to impact consumer spending. It’s managing director, Hans Laarakker said that he expect this year to be tougher than 2008, but despite the many challenges faced by the dairy industry, he was confident that Dutch Lady would be able to maintain last year’s sales figures. (StarBiz)
* * * * *
Scomi Engineering Bhd is about to embark on the second phase of a feasibility study for a US$3bn (RM10.5bn) monorail system in Bahrain. The Middle Eastern state's Works Minister Fahmi Al Jowder was reported as saying that Scomi Engineering had embarked on preliminary engineering studies on available lines for its first monorail network. (BT)
* * * * *
INVESTMENT RESEARCH
Malaysia
Parkson Holdings’s sub-unit Serbadagang Holdings Sdn Bhd is suing Chinese firms Dalian Tianhe Parkson Shopping enter Co Ltd, and Dalian Tianhe Plaza Co Ltd for RM26.6m and interests for its share of profits. Serbadagang is a wholly-owned subsidiary of East Crest International Ltd, a Parkson unit. Dalian Tianhe is 60% owned by Serbadagang and 40% owned by Dalian Tianhe Plaza. Parkson said Serbadagang had made full provisions for its investment costs in the first defendant and that the suit would not give rise to adverse financial or operational impact on the company. (Malaysian Reserve)
* * * * *
Proton Holdings Bhd is open to any form of partnership, including with China’s Chery Automobile Co Ltd, as long as it benefits both itself and the country. Proton’s MD said that if there was interest from any company, including Chery, they have to approach them first. Only then would Proton make their own fair assesment. He went on to say that Proton needed to be more forward looking and consider other markets than Malaysia. Also from next year onwards, Proton will be offering turbo version of its new models as it keeps tabs on customer preferences. (Malaysian Reserve)
* * * * *
The Malaysian economy contracted 6.2% y-o-y in the first quarter of 2009, the worst quarterly reversal since the 1997-98 Asian financial crisis, following a sharp drop in manufacturing output and exports. Bank Negara Malaysia (BNM) governor Tan Sri Dr Zeti Akhtar Aziz warned that similar conditions prevailed in 2Q09. The central bank said yesterday that manufacturing shrank 17.6%, mining 5.2% and agriculture 4.3% in 1Q09. It also said services slipped 0.1% while construction expanded 0.6%. Zeti said the economy was expected to stablise in the second half of 2009, supported by fiscal stimulus measures and steps to enhance access to financing. Inflation rate moderated to 3.7% in 1Q due mainly to lower inflation in the food and nonalcoholic
beverages and transport categories. Headline inflation continued to moderate to 3% in April. (Financial Daily)
* * * * *
Malaysia's central bank chief has dismissed the possible downgrade of local banks by Moody's Investors Service, saying that it was wrong in its assessment during the Asian financial crisis. Moody's may downgrade the credit ratings of Malaysian banks as part of a global review on the weakening ability of governments to support their banking system. But local banks have enough capital and are not under financial stress, said Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz.
(BT)
* * * * *
INVESTMENT RESEARCH
Stocks fell Wednesday, giving back gains from the previous session, after a sharp rise in Treasury yields added to jitters over a looming bankruptcy for General Motors. Stocks had traded mixed for most of the session as concerns that GM will not be able to avoid bankruptcy overshadowed an encouraging housing report. But the sell-off gained momentum in the afternoon as the yield on the benchmark 10-year bond jumped to a 6-month high. The Dow Jones industrial average lost 2.1% (-173.5 pts, close 8,300.0). The Standard & Poor's 500 index lost 1.9% (-17.3 pts, close 893.1) and the Nasdaq composite lost 1.1% (-19.4 pts, close 1,747.6). In currency trading, the dollar rose against the euro and the yen. It slipped against the pound, with the U.K. currency rising above US$1.60. U.S. light crude oil for July delivery rose US$1 to settle at US$63.45 a barrel on the New York Mercantile Exchange. (CNNmoney)
* * * * *
Home resales in the U.S. rose for the second time in three months in April as foreclosure auctions and cheaper prices spurred bargain hunters, buttressing the case for an end to the industry’s slump this year. Purchases increased 2.9% to an annual rate of 4.68m, in line with forecasts, from 4.55m in March, National Association of Realtors figures showed in Washington. The median price slumped 15% y-o-y, the second-biggest drop on record. A separate report indicated that the slump in home values eased in 1Q09. The average price of a U.S. home fell 7.1% in 1Q09, slower than the 4Q08 8.3% drop that was the largest on record, the Federal Housing Finance Agency said. (Bloomberg)
* * * * *
U.K. banks granted more mortgages in April than a month earlier, a sign the market for home loans is stabilizing, the British Bankers Association said. Banks approved 27,685 loans for house purchase, the London-based BBA, which represents the U.K.’s biggest banks, said yesterday. That compares with 26,671 loans in March. “The house purchase part of the mortgage market appears to have stabilized, with slightly more approvals coming through, although April’s weak net mortgage lending reflects the lower number of approvals in previous months,” David Dooks, director of statistics at the BBA, said. (Bloomberg)
* * * * *
German consumer prices unexpectedly dropped y-o-y in May, the first annual decline since at least 1996, after energy costs retreated. Prices fell 0.1% when calculated using a harmonized European Union method after rising an annual 0.8% in April, the Federal Statistics Office in Wiesbaden said yesterday. It’s the first negative inflation reading since harmonized data were first compiled in 1996. Economists predicted inflation would slow to 0.2%, according to the median of 18 forecasts in a Bloomberg News survey. A 55% drop in crude oil prices over the past year is pushing down inflation just as companies cut jobs and spending to stem the deepest recession since World War II. While some economists argue that deflationary pressures are
building across the 16-nation euro region, Germany’s Bundesbank says those concerns are unfounded. (Bloomberg)
* * * * *
French consumer and manufacturer confidence rose in May and optimism among Italian executives held at the
highest in more than year on expectations the worst of the recession is over. French manufacturing confidence gained for a second month, while consumer optimism advanced to highest in 13 months, Insee, the national statistics office said. In Italy, household confidence matched the April reading, the highest since December 2007, the country’s national statistics institute reported. Both economies remain mired in the worst recession in more than half a century. Still, lower borrowing costs and falling prices are providing some respite from the slump. The French economy is set to contract for a fifth straight quarter in the three months through June and unemployment will reach 9.6% this year, the European Commission forecast on May 4. Italy contracted 2.4% in 1Q09, the most since at least 1980 and the commission expects Europe’s fourth-biggest economy to shrink 4.4% this year. (Bloomberg)
* * * * *
Japan’s export slump moderated in April, helping the country post an unexpected trade surplus and adding to signs the worst recession since World War II is easing. Shipments abroad fell 39.1% y-o-y, after dropping 45.5% in March and a record 49.4% in February, the Finance Ministry said yesterday in Tokyo. From a month earlier, exports rose 1.9%, a second straight gain. Exports to the U.S., China and Europe all fell at the slowest pace this year, adding weight to Bank of Japan Governor Masaaki Shirakawa’s contention that the economy will resume growing this quarter. Imports fell 35.8% y-o-y, the ministry said, and the trade surplus narrowed 85% to 69bn yen (US$725m). (Bloomberg)
* * * * *
Global
INVESTMENT RESEARCH
China said it was cutting capital requirements for some fixed-asset investment projects to spur growth in the world’s third-biggest economy. “The government will appropriately lower the minimum capital requirement ratio for important state projects,” the State Council said in a statement posted on a government web site yesterday. The council, China’s cabinet, said requirements were being “adjusted” across industries, then specified levels without saying whether they were increases or decreases. Projects involving coal, air or sea ports, property and railways had previously been tagged by the government for reductions. Minimum capital requirements include funds from the government and retained profits and exclude bank loans and dxebt. (Bloomberg)
* * * * *
The global air travel slump eased in April, with passenger traffic falling 3.1% from a year earlier, even after an outbreak of swine flu discouraged travel, the International Air Transport Association (IATA) said. The traffic drop compared with an 11% decrease in March, which marked the sixth month of successively steeper declines. “We are not out of the woods yet,” Giovanni Bisignani, chief executive officer of IATA, said in the statement. (BT)
* * * * *
What’s Happening
RESULTS
Company Quarter Date
Sunway City 3Q 28 May
KNM 1Q 28 May
Plus 1Q 28 May
AirAsia 1Q 28 May
MAS 1Q 29 May
Muhibbah 1Q 29 May
NEW LISTING
Companies Prospectus Date
Listing Date
Samchem Holdings Bhd 22 May 23 June
INVESTMENT RESEARCH
Reports Published
Company Title Target Price Rec Date
Bumiputra Commerce (RM8.00) Completes Bank of Yingkou purchase RM7.70 Hold 21 Apr
SunCity (RM1.99) Still some shine to it RM2.96 Buy 22 Apr
British American Tobacco (RM45.00) 1QFY09 Results RM47.00 Hold 23 Apr
Plantations Sector Weekly Review - Overweight 27 Apr
Banking Sector Weekly Review - Neutral 27 Apr
Construction Sector Weekly Review - Neutral 27 Apr
Oil & Gas Sector Weekly Review - Neutral 27 Apr
Property Sector Weekly Review - Neutral 27 Apr
Telco Sector Weekly Review - Neutral 27 Apr
Banking Financial sector liberalization - Neutral 28 Apr
Market Strategy Khazanah's Malaysian investments: Time to
deliver
- - 28 Apr
Banking April 2009: March numbers holding steady Neutral 30 Apr
Property Strong uptick in property loan approval Neutral 30 Apr
DiGi.Com (RM22.30) 1QFY09 Results RM22.60 Hold 4 May
Plantations Sector Monthly Review - Overweight 4 May
Telco Sector Monthly Review - Neutral 4 May
Construction Sector Monthly Review - Neutral 4 May
Oil & Gas Sector Monthly Review - Neutral 4 May
Property Sector Monthly Review - Neutral 4 May
Sime Darby (RM6.70) More than doubling yard space RM6.40 Hold 5 May
IJM Corp (RM5.30) Water tunnel job flowed in RM5.10 Hold 5 May
Hong Leong Bank (RM5.70) 3QFY09 Results RM5.80 Hold 7 May
Sunrise (RM1.46) 3QFY09 Results RM2.17 Buy 8 May
Plantations Sector Weekly Review - Overweight 11 May
Banking Sector Weekly Review - Neutral 11 May
Construction Sector Weekly Review - Neutral 11 May
Oil & Gas Sector Weekly Review - Neutral 11 May
Property Sector Weekly Review - Neutral 11 May
Telco Sector Weekly Review - Neutral 11 May
Building Materials Sector Weekly Review - Neutral 11 May
Bumiputra Commerce (RM8.85) 1QFY09 Results RM8.80 Hold 15 May
Heavy Industries (RM3.26) New JV signed with DNCS Under review Hold 15 May
AMMB Holding (RM3.18) 4QFY09 Results RM4.00 Buy 18 May
IOI Corp (RM4.44) 3QFY09 Results RM4.00 Sell 18 May
Media Prima (RM1.34) 1QFY09 Results RM1.25 Hold 18 May
Boustead Heavy Ind (RM3.30) 1QFY09 Results RM3.30 Hold 18 May
Banking Sector Weekly Review - Neutral 18 May
Building Materials Sector Weekly Review - Neutral 18 May
Oil & Gas Sector Weekly Review - Neutral 18 May
Property Sector Weekly Review - Neutral 18 May
Telco Sector Weekly Review - Neutral 18 May
Plantation Sector Weekly Review - Overweight 18 May
Construction Sector Weekly Review - Neutral 18 May
Boustead Holdings (RM3.54) 1QFY09 Results RM3.60 Hold 19 May
YNH (RM1.47) 1QFY09 Results RM2.02 Buy 20 May
Axiata (RM2.32) 1QFY09 Results RM3.12 Buy 20 May
TSH Resources (RM1.74) 1QFY09 Results RM2.05 Buy 21 May
UMW Holdings (RM5.80) 1QFY09 Results RM5.65 Hold 21 May
DiGi.Com (RM22.50) Enters the MVNO market with Baraka RM22.60 Hold 22 May
Litrak (RM2.30) 4QFY09 Results RM2.22 Buy 22 May
Maybank (RM5.20) 3QFY09 Results RM6.40 Buy 22 May
Telekom (RM3.80) 1QFY09 Results RM4.90 Buy 22 May
YTL Corp (RM7.05) 3QFY09 Results RM8.00 Buy 22 May
YTL Power (RM2.09) 3QFY09 Results RM2.50 Buy 22 May
YTL Cement (RM3.36) 3QFY09 Results RM4.50 Buy 22 May
Tenaga Nasional (RM7.65) Plans to boost hydro power RM7.00) Hold 25 May
Banking Sector Weekly Review - Neutral 25 May
Building Materials Sector Weekly Review - Neutral 25 May
Oil & Gas Sector Weekly Review - Neutral 25 May
Property Sector Weekly Review - Neutral 25 May
Telco Sector Weekly Review - Neutral 25 May
Plantation Sector Weekly Review - Overweight 25 May
Sime Darby (RM6.95) 3QFY09 Results RM7.70 Buy 26 May
Puncak Niaga (RM2.85) 1QFY09 Results RM3.00 Hold 26 may
Sapura Crest (RM1.40) Nippon Steel contract for Sapura 3000 RM0.67 Sell 26 May
Macro Views May 2009 : Liquidity-driven markets - - 26 May
IJM Corp (RM5.70) 3QFY09 Results RM5.10 Hold 27 May
Sunway Holdings (RM1.04) 3QFY09 Results RM10.9 Hold 27 May
Star Pub (RM3.20) 1QFY09 Results RM3.36 Hold 27 May
Malaysia
Private companies controlled by Genting Bhd (GENT MK, Buy, TP: RM5.30) chief executive officer Tan Sri Lim Kok Thay’s family disposed of a 9.5% stake in Genting Singapore plc, the proceeds of which may be used by the family to invest in MGM Mirage’s Macau casino. The 9.5% stake was placed out for a total of S$658.71m (RM1.59bn) of at S$0.72 each, which was at a 16.7% discount to the closing price on Tuesday. (Financial Daily)
* * * * *
Telekom Malaysia Bhd (T MK, Buy, TP: RM4.90) signed a sale and purchase agreement with AmMortgage One Bhd, a wholly-owned subsidiary of AmBank (M) Bhd, for the sale of its employees’ residential loans. TM said the residential loans would be sold to AmMortgage One with the first series of the sale having an outstanding principal value of RM348.9m. AmMortgage One will issue medium term notes to raise sufficient proceeds to satisfy the purchase consideration of the first series of the mortgage assets from TM. (Financial Daily)
* * * * *
KNM Group Bhd (KNMG MK, Sell, TP: RM0.67) said there are signs demand is picking up after a crude-price rally triggered a revival of exploration projects. "Our guys are becoming busy again," managing director Lee Swee Eng said in a phone interview on Tuesday. "Not busy taking orders, but busy starting to discuss. Customers are starting to restart their projects." It's not clear now long it will take for these new oil and gas exploration proposals to translate into new contracts, Lee said. He declined to disclose the value of KNM's order book, which in March was at RM3.9bn. (BT)
* * * * *
Tenaga Nasional Bhd (TNB MK, Hold, TP: RM7.00) is expected to issue the tender document for the submarine transmission line by year-end, said chief financial officer Datuk Izzaddin Idris. He said that the bids were expected to be very competitive given that metal prices are at their lows in the current times. Aluminium and copper, which are the main metals used, are much cheaper than before. (StarBiz)
* * * * *
YTL Corp Bhd’s (YTL MK, Buy, TP: RM8.00) wholly-owned subsidiary YTL Hotels & Properties Sdn Bhd has entered into a sale and purchase agreement with Vun Vui Heung and Melinda Voon Ching Mee to acquire 80% of the issued and paid-up capital of Borneo Island Villas Sdn Bhd for RM77.5m cash. Upon completion of the proposed acquisition, Borneo Island will become an 80% owned subsidiary of YTL Hotels & Properties and indirect subsidiary of YTL Corp. (StarBiz)
* * * * *
IGB Corp Bhd is in talks with 10 parties on developing hotels in Vietnam, China, Thailand and Australia. Group managing director Robert Tan said the development might be in the form of joint venture, asset management or to wholly-own the entity itself. The hotels will carry the brand of either St Giles or Cititel but no deals have been closed at the moment. (StarBiz)
* * * * *
Dutch Lady Milk Industries Bhd expects 2009 to be challenging year as the current economic slowdown continues to impact consumer spending. It’s managing director, Hans Laarakker said that he expect this year to be tougher than 2008, but despite the many challenges faced by the dairy industry, he was confident that Dutch Lady would be able to maintain last year’s sales figures. (StarBiz)
* * * * *
Scomi Engineering Bhd is about to embark on the second phase of a feasibility study for a US$3bn (RM10.5bn) monorail system in Bahrain. The Middle Eastern state's Works Minister Fahmi Al Jowder was reported as saying that Scomi Engineering had embarked on preliminary engineering studies on available lines for its first monorail network. (BT)
* * * * *
INVESTMENT RESEARCH
Malaysia
Parkson Holdings’s sub-unit Serbadagang Holdings Sdn Bhd is suing Chinese firms Dalian Tianhe Parkson Shopping enter Co Ltd, and Dalian Tianhe Plaza Co Ltd for RM26.6m and interests for its share of profits. Serbadagang is a wholly-owned subsidiary of East Crest International Ltd, a Parkson unit. Dalian Tianhe is 60% owned by Serbadagang and 40% owned by Dalian Tianhe Plaza. Parkson said Serbadagang had made full provisions for its investment costs in the first defendant and that the suit would not give rise to adverse financial or operational impact on the company. (Malaysian Reserve)
* * * * *
Proton Holdings Bhd is open to any form of partnership, including with China’s Chery Automobile Co Ltd, as long as it benefits both itself and the country. Proton’s MD said that if there was interest from any company, including Chery, they have to approach them first. Only then would Proton make their own fair assesment. He went on to say that Proton needed to be more forward looking and consider other markets than Malaysia. Also from next year onwards, Proton will be offering turbo version of its new models as it keeps tabs on customer preferences. (Malaysian Reserve)
* * * * *
The Malaysian economy contracted 6.2% y-o-y in the first quarter of 2009, the worst quarterly reversal since the 1997-98 Asian financial crisis, following a sharp drop in manufacturing output and exports. Bank Negara Malaysia (BNM) governor Tan Sri Dr Zeti Akhtar Aziz warned that similar conditions prevailed in 2Q09. The central bank said yesterday that manufacturing shrank 17.6%, mining 5.2% and agriculture 4.3% in 1Q09. It also said services slipped 0.1% while construction expanded 0.6%. Zeti said the economy was expected to stablise in the second half of 2009, supported by fiscal stimulus measures and steps to enhance access to financing. Inflation rate moderated to 3.7% in 1Q due mainly to lower inflation in the food and nonalcoholic
beverages and transport categories. Headline inflation continued to moderate to 3% in April. (Financial Daily)
* * * * *
Malaysia's central bank chief has dismissed the possible downgrade of local banks by Moody's Investors Service, saying that it was wrong in its assessment during the Asian financial crisis. Moody's may downgrade the credit ratings of Malaysian banks as part of a global review on the weakening ability of governments to support their banking system. But local banks have enough capital and are not under financial stress, said Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz.
(BT)
* * * * *
INVESTMENT RESEARCH
Stocks fell Wednesday, giving back gains from the previous session, after a sharp rise in Treasury yields added to jitters over a looming bankruptcy for General Motors. Stocks had traded mixed for most of the session as concerns that GM will not be able to avoid bankruptcy overshadowed an encouraging housing report. But the sell-off gained momentum in the afternoon as the yield on the benchmark 10-year bond jumped to a 6-month high. The Dow Jones industrial average lost 2.1% (-173.5 pts, close 8,300.0). The Standard & Poor's 500 index lost 1.9% (-17.3 pts, close 893.1) and the Nasdaq composite lost 1.1% (-19.4 pts, close 1,747.6). In currency trading, the dollar rose against the euro and the yen. It slipped against the pound, with the U.K. currency rising above US$1.60. U.S. light crude oil for July delivery rose US$1 to settle at US$63.45 a barrel on the New York Mercantile Exchange. (CNNmoney)
* * * * *
Home resales in the U.S. rose for the second time in three months in April as foreclosure auctions and cheaper prices spurred bargain hunters, buttressing the case for an end to the industry’s slump this year. Purchases increased 2.9% to an annual rate of 4.68m, in line with forecasts, from 4.55m in March, National Association of Realtors figures showed in Washington. The median price slumped 15% y-o-y, the second-biggest drop on record. A separate report indicated that the slump in home values eased in 1Q09. The average price of a U.S. home fell 7.1% in 1Q09, slower than the 4Q08 8.3% drop that was the largest on record, the Federal Housing Finance Agency said. (Bloomberg)
* * * * *
U.K. banks granted more mortgages in April than a month earlier, a sign the market for home loans is stabilizing, the British Bankers Association said. Banks approved 27,685 loans for house purchase, the London-based BBA, which represents the U.K.’s biggest banks, said yesterday. That compares with 26,671 loans in March. “The house purchase part of the mortgage market appears to have stabilized, with slightly more approvals coming through, although April’s weak net mortgage lending reflects the lower number of approvals in previous months,” David Dooks, director of statistics at the BBA, said. (Bloomberg)
* * * * *
German consumer prices unexpectedly dropped y-o-y in May, the first annual decline since at least 1996, after energy costs retreated. Prices fell 0.1% when calculated using a harmonized European Union method after rising an annual 0.8% in April, the Federal Statistics Office in Wiesbaden said yesterday. It’s the first negative inflation reading since harmonized data were first compiled in 1996. Economists predicted inflation would slow to 0.2%, according to the median of 18 forecasts in a Bloomberg News survey. A 55% drop in crude oil prices over the past year is pushing down inflation just as companies cut jobs and spending to stem the deepest recession since World War II. While some economists argue that deflationary pressures are
building across the 16-nation euro region, Germany’s Bundesbank says those concerns are unfounded. (Bloomberg)
* * * * *
French consumer and manufacturer confidence rose in May and optimism among Italian executives held at the
highest in more than year on expectations the worst of the recession is over. French manufacturing confidence gained for a second month, while consumer optimism advanced to highest in 13 months, Insee, the national statistics office said. In Italy, household confidence matched the April reading, the highest since December 2007, the country’s national statistics institute reported. Both economies remain mired in the worst recession in more than half a century. Still, lower borrowing costs and falling prices are providing some respite from the slump. The French economy is set to contract for a fifth straight quarter in the three months through June and unemployment will reach 9.6% this year, the European Commission forecast on May 4. Italy contracted 2.4% in 1Q09, the most since at least 1980 and the commission expects Europe’s fourth-biggest economy to shrink 4.4% this year. (Bloomberg)
* * * * *
Japan’s export slump moderated in April, helping the country post an unexpected trade surplus and adding to signs the worst recession since World War II is easing. Shipments abroad fell 39.1% y-o-y, after dropping 45.5% in March and a record 49.4% in February, the Finance Ministry said yesterday in Tokyo. From a month earlier, exports rose 1.9%, a second straight gain. Exports to the U.S., China and Europe all fell at the slowest pace this year, adding weight to Bank of Japan Governor Masaaki Shirakawa’s contention that the economy will resume growing this quarter. Imports fell 35.8% y-o-y, the ministry said, and the trade surplus narrowed 85% to 69bn yen (US$725m). (Bloomberg)
* * * * *
Global
INVESTMENT RESEARCH
China said it was cutting capital requirements for some fixed-asset investment projects to spur growth in the world’s third-biggest economy. “The government will appropriately lower the minimum capital requirement ratio for important state projects,” the State Council said in a statement posted on a government web site yesterday. The council, China’s cabinet, said requirements were being “adjusted” across industries, then specified levels without saying whether they were increases or decreases. Projects involving coal, air or sea ports, property and railways had previously been tagged by the government for reductions. Minimum capital requirements include funds from the government and retained profits and exclude bank loans and dxebt. (Bloomberg)
* * * * *
The global air travel slump eased in April, with passenger traffic falling 3.1% from a year earlier, even after an outbreak of swine flu discouraged travel, the International Air Transport Association (IATA) said. The traffic drop compared with an 11% decrease in March, which marked the sixth month of successively steeper declines. “We are not out of the woods yet,” Giovanni Bisignani, chief executive officer of IATA, said in the statement. (BT)
* * * * *
What’s Happening
RESULTS
Company Quarter Date
Sunway City 3Q 28 May
KNM 1Q 28 May
Plus 1Q 28 May
AirAsia 1Q 28 May
MAS 1Q 29 May
Muhibbah 1Q 29 May
NEW LISTING
Companies Prospectus Date
Listing Date
Samchem Holdings Bhd 22 May 23 June
INVESTMENT RESEARCH
Reports Published
Company Title Target Price Rec Date
Bumiputra Commerce (RM8.00) Completes Bank of Yingkou purchase RM7.70 Hold 21 Apr
SunCity (RM1.99) Still some shine to it RM2.96 Buy 22 Apr
British American Tobacco (RM45.00) 1QFY09 Results RM47.00 Hold 23 Apr
Plantations Sector Weekly Review - Overweight 27 Apr
Banking Sector Weekly Review - Neutral 27 Apr
Construction Sector Weekly Review - Neutral 27 Apr
Oil & Gas Sector Weekly Review - Neutral 27 Apr
Property Sector Weekly Review - Neutral 27 Apr
Telco Sector Weekly Review - Neutral 27 Apr
Banking Financial sector liberalization - Neutral 28 Apr
Market Strategy Khazanah's Malaysian investments: Time to
deliver
- - 28 Apr
Banking April 2009: March numbers holding steady Neutral 30 Apr
Property Strong uptick in property loan approval Neutral 30 Apr
DiGi.Com (RM22.30) 1QFY09 Results RM22.60 Hold 4 May
Plantations Sector Monthly Review - Overweight 4 May
Telco Sector Monthly Review - Neutral 4 May
Construction Sector Monthly Review - Neutral 4 May
Oil & Gas Sector Monthly Review - Neutral 4 May
Property Sector Monthly Review - Neutral 4 May
Sime Darby (RM6.70) More than doubling yard space RM6.40 Hold 5 May
IJM Corp (RM5.30) Water tunnel job flowed in RM5.10 Hold 5 May
Hong Leong Bank (RM5.70) 3QFY09 Results RM5.80 Hold 7 May
Sunrise (RM1.46) 3QFY09 Results RM2.17 Buy 8 May
Plantations Sector Weekly Review - Overweight 11 May
Banking Sector Weekly Review - Neutral 11 May
Construction Sector Weekly Review - Neutral 11 May
Oil & Gas Sector Weekly Review - Neutral 11 May
Property Sector Weekly Review - Neutral 11 May
Telco Sector Weekly Review - Neutral 11 May
Building Materials Sector Weekly Review - Neutral 11 May
Bumiputra Commerce (RM8.85) 1QFY09 Results RM8.80 Hold 15 May
Heavy Industries (RM3.26) New JV signed with DNCS Under review Hold 15 May
AMMB Holding (RM3.18) 4QFY09 Results RM4.00 Buy 18 May
IOI Corp (RM4.44) 3QFY09 Results RM4.00 Sell 18 May
Media Prima (RM1.34) 1QFY09 Results RM1.25 Hold 18 May
Boustead Heavy Ind (RM3.30) 1QFY09 Results RM3.30 Hold 18 May
Banking Sector Weekly Review - Neutral 18 May
Building Materials Sector Weekly Review - Neutral 18 May
Oil & Gas Sector Weekly Review - Neutral 18 May
Property Sector Weekly Review - Neutral 18 May
Telco Sector Weekly Review - Neutral 18 May
Plantation Sector Weekly Review - Overweight 18 May
Construction Sector Weekly Review - Neutral 18 May
Boustead Holdings (RM3.54) 1QFY09 Results RM3.60 Hold 19 May
YNH (RM1.47) 1QFY09 Results RM2.02 Buy 20 May
Axiata (RM2.32) 1QFY09 Results RM3.12 Buy 20 May
TSH Resources (RM1.74) 1QFY09 Results RM2.05 Buy 21 May
UMW Holdings (RM5.80) 1QFY09 Results RM5.65 Hold 21 May
DiGi.Com (RM22.50) Enters the MVNO market with Baraka RM22.60 Hold 22 May
Litrak (RM2.30) 4QFY09 Results RM2.22 Buy 22 May
Maybank (RM5.20) 3QFY09 Results RM6.40 Buy 22 May
Telekom (RM3.80) 1QFY09 Results RM4.90 Buy 22 May
YTL Corp (RM7.05) 3QFY09 Results RM8.00 Buy 22 May
YTL Power (RM2.09) 3QFY09 Results RM2.50 Buy 22 May
YTL Cement (RM3.36) 3QFY09 Results RM4.50 Buy 22 May
Tenaga Nasional (RM7.65) Plans to boost hydro power RM7.00) Hold 25 May
Banking Sector Weekly Review - Neutral 25 May
Building Materials Sector Weekly Review - Neutral 25 May
Oil & Gas Sector Weekly Review - Neutral 25 May
Property Sector Weekly Review - Neutral 25 May
Telco Sector Weekly Review - Neutral 25 May
Plantation Sector Weekly Review - Overweight 25 May
Sime Darby (RM6.95) 3QFY09 Results RM7.70 Buy 26 May
Puncak Niaga (RM2.85) 1QFY09 Results RM3.00 Hold 26 may
Sapura Crest (RM1.40) Nippon Steel contract for Sapura 3000 RM0.67 Sell 26 May
Macro Views May 2009 : Liquidity-driven markets - - 26 May
IJM Corp (RM5.70) 3QFY09 Results RM5.10 Hold 27 May
Sunway Holdings (RM1.04) 3QFY09 Results RM10.9 Hold 27 May
Star Pub (RM3.20) 1QFY09 Results RM3.36 Hold 27 May
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