Maybank Research - 6 Dec 2012

kltrader

Publish date: Thu, 06 Dec 2012, 09:57 AM

Technicals

Rebound May Stall At 1,624.55 And 1,635.02

The FBMKLCI rose by 6.18 points to close at 1,613.79 yesterday. Its resistance levels of 1,613 and 1,635 will cap market gains, whilst obvious support areas are located at 1,590 and 1,611.

The Trading Idea is a TAKE PROFIT call on UNISEM with downside target prices of MYR0.73 and MYR0.83.

Other Local News

Axiata: To invest MYR300m to support 4G. Celcom Axiata Bhd, which is long-term evolution (LTE) ready, will be investing MYR300m over the next three years to support the 4G network. The Malaysian Communications and Multimedia Commission yesterday announced Celcom Axiata as one of the eight companies allowed access to the LTE or 4G spectrum. Celcom Axiata would be spending less than MYR1b as capital expenditure (capex) in the financial year ending Dec 31, 2013 for network modernisation and IT transformation as it expanded its focus on new digital services. (Source: The Star)

Maxis: Plans to develop 4G sites in Sabah, Sarawak in 2013. Maxis Bhd will be developing long-term evolution (LTE) or 4G sites in Sabah and Sarawak next year, beginning with key towns. Maxis was waiting for the appropriate licences to be formalised and could not ascertain when the High Speed Packet Access (HSPA) service would be made available next year. Maxis has committed a further MYR122m over the next six months to enhance its network coverage in Sabah and Sarawak. (Source: The Star)

Sime Darby: Wins Indonesia gold miner contract. Sime Darby Industrial Sdn Bhd recently secured a MYR210m machinery maintenance and repair contract from Indonesian gold mine operator, PT J Resources Nusantara. Sime Darby Industrial also signed a separate MoU to deliver 60 heavy machinery units valued at MYR117m with staged deliveries until early 2013. (Source: The Edge Financial Daily)

Telecommunication: 8 firms get 2,600 MHz spectrum. 4G is is mobile broadband services delivered using the next generation of mobile broadband technologies, including Long Term Evolution (LTE) and WiMAX (Worldwide Interoperability for Microwave Access). The eight companies are Celcom Axiata Bhd, DiGi Telecommunications Sdn Bhd, Maxis Broadband Sdn Bhd, Packet One Networks (M) Sdn Bhd, Puncak Semangat Sdn Bhd, REDtone Marketing Sdn Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd. (Source: Business Times)

Outside Malaysia

U.S: Services unexpectedly grows at faster pace in November, showing the biggest part of the economy is weathering concern about looming federal tax increases and spending cuts. The Institute for Supply Management's non-manufacturing index rose to 54.7 last month from 54.2 in October, the Tempe, Arizona-based group said. Readings above 50 signal expansion. (Source: Bloomberg)

U.S: Gains in capital equipment orders exceeds prior estimate in October. Bookings for non-defense capital goods excluding aircraft, a proxy for future spending, rose a revised 2.9% MoM after dropping 0.5% MoM in September. The gain was previously estimated at 1.7% MoM, according to last week's durable-goods report. (Source: Bloomberg)

U.S: Productivity picks up as companies reduce labor costs. The measure of employee output per hour climbed at a 2.9% annual rate, the biggest gain in two years and up from 1.9% in the prior three months, revised Labor Department figures showed. Costs per worker fell at a 1.9% rate, more than previously estimated. (Source: Bloomberg)

E.U: Euro-Area manufacturing, services contract for 10th month in November. A composite index based on a survey of purchasing managers in both industries rose to 46.5 from 45.7, London-based Markit Economics said. That's above an initial estimate of 45.8 published on Nov. 22. A reading below 50 indicates contraction. (Source: Bloomberg)

India: Service- industries expanded at the slowest pace in 13 months in November, a private survey showed, signaling demand remains subdued as Asia's third-largest economy struggles. The purchasing managers' index fell to 52.1 from 53.8 in October, HSBC Holdings Plc and Markit Economics said. A number above 50 indicates growth. (Source: Bloomberg)

Taiwan: Inflation slowed for a third month in November, signaling the central bank may leave interest rates unchanged as subdued economic growth caps price pressures. Consumer prices rose 1.59% YoY after climbing a revised 2.34% YoY in October, the statistics bureau said. (Source: Bloomberg)

Philippines: Inflation slowed to a five-month low in November as food and fuel prices eased. Consumer prices rose 2.8%YoY, after a previously reported 3.1% YoY advance in October, the National Statistics Office said. (Source: Bloomberg)

Australia: Economy slowed last quarter on the weakest consumer demand in 2 1/2 years and tighter government spending, validating the central bank's decision to cut interest rates. Third-quarter gross domestic product advanced 3.1% YoY after a revised 3.8% YoY expansion in the April-June period, a Bureau of Statistics report released showed. Growth was 0.5% QoQ from the previous three months, when the quarterly gain was 0.6% QoQ. (Source: Bloomberg)

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