KL Trader Investment Research Articles
Maybank Research - 9 March 2012
SECTOR UPDATE
| Regional Banking-Singapore: Maintain Underweight |
| A muted 2011; hazy outlook still |
|
Maintain Underweight. Our 2012 growth forecasts have been marginally raised, and we now project a higher aggregate operating profit growth rate of 7.6% (4.9% previously) for the three banks. At the net profit level, we expect growth to taper off to 4.2% on the back of higher provisions. Trading at an average P/BV of 1.2x, valuations could be more attractive, especially since we expect ROEs to slip further to 10.7% on a blended basis for 2012, from 11.1% in 2011 and a long-term mean of 12.1%. We retain our Sell calls on DBS, OCBC and UOB. |
| Technicals |
|
The FBM KLCI closed 3.53 points higher, at 1,578.36. Its resistance areas of 1,578 and 1,594 will cap market gains, whilst the weaker support areas are located at 1,557 and 1,576. The Trading Idea is a TAKE PROFIT call on DIALOG with downside target prices of MYR2.10 and 1.92. Click here for full report » |
| Other Local News |
|
AEON: In RM350m expansion drive. AEON Co (M) Bhd, which operates the Jusco department store and supermarket chain, has allocated RM350 million for capital expenditure this year, particularly to increase its market penetration in the retail business. This includes the opening of two new shopping centres as well as refurbishment of existing stores. (Source: BTimes) Petronas Dagangan: Perodua in RM225m deal with Petronas Dagangan. Petronas Dagangan Bhd has signed a RM225 million deal to supply Perusahaan Otomobil Kedua Sdn Bhd (Perodua) with lubricant oil over the next five years. In a statement yesterday, the new contract, dubbed the "Perodua Genuine Oil Agreement", will see the country's largest national carmaker using Petronas SL/SM grade oil at all its service outlets nationwide worth RM45 million a year for five years with immediate effect. (Source: BTimes) M&As: Billionaire Ananda Krishnan to sell TGV cinemas? Speculation is rife that Ananda Krishnan would soon put his cinema business parked under TGV Cinemas Sdn Bhd up for sale following the disposal of his power assets. TGV is the second largest cinema player in the country after Golden Screen Cinemas Sdn Bhd.TGV enjoyed an EBITDA of RM26.2mil on the back of RM153.86mil revenues in FY2010. TGV's EBITDA has grown on an average of 20% every year since 2008. It should be noted that this growth tended to be in sync with the number of cinemas opened.TGV has 124 cinema halls throughout Malaysia housed in 16 outlets. (Source: The Star) Property: RM22bil plan to turn Mersing into the likes of Bali and Hawaii. Radiant Starfish Development Bhd plans to position Mersing town into an international tourist destination on par with Gold Coast, Bali, Caribbean and Hawaii. Chief executive officer Ungku Safian Abdullah said the town had all the ingredients to become a tourist hotspot and its potential had yet to be exploited. (Source: The Star) Property: PNB buys two London properties for RM2.6bil. Permodalan Nasional Bhd (PNB) has joined the ranks of global investors to buy into prime London commercial offices with its latest purchase of two properties, 90 High Holborn and One Exchange Square, bringing to four its portfolio of properties in the international financial centre.The two buildings, which come with single tenancies, were bought from German fund manager KanAm for £550mil (RM2.6bil), offering PNB an annual yield of 5.25%, a source said.(Source: The Star) |
| Outside Malaysia |
|
U.S: Jobless claims rose 8,000 last week to 362,000, a level consistent with an improving labor market. Applications for unemployment insurance payments increased by 8,000 in the week ended March 3. The average over the past four weeks held close to a four-year low. (Source: Bloomberg) E.U: Draghi lays groundwork for ECB exit as inflation takes spotlight. European Central Bank President Mario Draghi signaled he's done enough to battle the sovereign debt crisis, laying the groundwork for an eventual exit from record-low interest rates and emergency lending measures. Declaring that the environment "has improved enormously" and there are "many signs of returning confidence in the euro," Draghi turned the spotlight instead on "upside risks" to inflation, which is now forecast to remain above the ECB's 2% limit this year. That suggests policy makers don't plan to cut rates further or add to their EUR 1tr (USD 1.32tr) of long-term loans to banks, economists said. (Source: Bloomberg) Germany: Industrial output gained more than forecast in January, rebounding from a December slump as construction activity jumped. Production rose 1.6% MoM from December, when it fell 2.6% MoM, which was the steepest decline in almost three years. In the year, production advanced 1.8% YoY when adjusted for working days. (Source: Bloomberg) U.K: King to face renewed BOE rift as inflation dispute simmers. Bank of England Governor Mervyn King faces the prospect of a renewed rift among his officials as a dispute simmers on whether inflation threatens the U.K. economy. The Monetary Policy Committee kept its bond-purchase target at GBP 325b (USD 514b) after raising it by GBP 50b last month. Over the past two weeks, potential divisions emerged after Martin Weale indicated he may not favor further purchases after the current round ends in May and David Miles said there's a case for "aggressively" loosening policy. (Source: Bloomberg) Brazil: Accelerates interest rate cuts amid lackluster growth. In a split vote, policy makers led by bank President Alexandre Tombini cut the Selic rate by 75 basis points to 9.75%. Two dissenting members voted to lower the rate by a half point for a fifth straight meeting. (Source: Bloomberg) S. Korea: Bank of Korea held off altering borrowing costs for a ninth straight month as policy makers balance the risks from Europe's debt crisis against rising oil costs that add to price pressures. Governor Kim Choong Soo and his board kept the benchmark seven-day repurchase rate unchanged at 3.25%, the central bank said in a statement. (Source: Bloomberg) Indonesia: The central bank held interest rates to support growth as a government plan to raise fuel prices and electricity tariffs revives inflation risk. Governor Darmin Nasution and his board kept the reference rate at 5.75%, Bank Indonesia said in a statement in Jakarta. (Source: Bloomberg) Australia: Employers unexpectedly cut payrolls in February and the unemployment rate rose for the first time since August as a stronger currency hurt tourism and manufacturing. The number of people employed fell by 15,400, the statistics bureau said. The jobless rate rose to 5.2% from 5.1%. (Source: Bloomberg) |
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Be the first to like this. Showing 2 of 4 comments
share market always run different way,more ppl think currently won't break 1600 then easily break 1600.so more ppl come to predict klci will go 1650-1700.ha,ha???.
2012-03-11 11:58
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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not in this research article. but the research houses can change their mind anytime by publishing a new stance when their previous prediction is proven wrong..
2012-03-11 09:01