Maybank Research Highlights - 20 March 2013

kltrader

Publish date: Wed, 20 Mar 2013, 10:51 AM

Technicals

Unimpressive Low-Volume Rebound

The FBMKLCI rose by 4.10 points to close at 1,625.46 yesterday. Its resistance level of 1,625 and 1,646 will cap market gains, whilst weaker support areas are located at 1,590 and 1,619.

The Trading Idea is a TAKE PROFIT call on KBB with a downside target price of MYR0.22 and MYR0.25.

Other Local News

Maxis: Sandip wants early release. Maxis Bhd CEO Sandip Das, whose tenure as CEO ends on June 30, 2013, has requested for an early release from office. This follows an earlier announcement made on Dec 31. Maxis said that the board had agreed to Sandip's request and that he would relinquish his position as CEO and as a director of Maxis with effect from April 15, 2013.

TM: UniFi subscriber base tops 517,000. Telekom Malaysia Bhd says the subscriber base for its high-speed broadband (HSBB) service UniFi has surpassed the 517,000 mark, with take-up rate of over 37%. (Source: The Edge Daily)

Hibiscus: Upbeat on drilling technology. In some eight blind tests conducted on previously drilled wells in the Norwegian Continental Shelf using the Rex Virtual Drilling technology, Hibiscus Petroleum Bhd said the technology has repeatedly and accurately predicted the presence or absence of oil without physically drilling a well. (Source: Bursa Malaysia)

Outside Malaysia

Germany: Investor confidence unexpectedly rose to a three-year high in March, suggesting Europe's largest economy will return to growth. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, increased to 48.5 from 48.2 in February. That's the highest since April 2010. (Source: Bloomberg)

U.K: Inflation accelerated to the fastest pace in nine months in February and factory-gate prices increased twice as much as forecast as energy costs surged. Consumer prices rose 2.8% YoY, compared with 2.7% YoY in January, the Office for National Statistics said. Producer prices increased 0.8% MoM from the previous month, the most since April 2011. (Source: Bloomberg)

Cyprus: Rejects deposit levy in blow to European bailout plan. Protestors cheered outside the parliament in the Cypriot capital, Nicosia, as lawmakers voted 36 against to none in favor of the proposal. There were 19 abstentions. Hammered out by euro-area finance chiefs last weekend, the deal sought to raise EUR 5.8b (USD 7.5b) by drawing funds from Cyprus bank accounts in return for EUR 10b in external aid. (Source: Bloomberg)

China: Foreign direct investment rose for the first time in nine months in February, a sign confidence in the world's second-biggest economy is improving amid optimism growth will keep rebounding. Inbound investment gained 6.3% YoY to USD 8.21b, the Ministry of Commerce said. Non-financial outbound investment in the first two months of the year surged 147% to USD 18.4b, exceeding inbound spending of USD 17.5b. (Source: Bloomberg)

India: Rate cut eclipsed by reform risk as Singh loses ally. The Dravida Munnetra Kazhagam, the largest ally, said it would stop support for Prime Minister Manmohan Singh's administration. The Reserve Bank of India in Mumbai lowered the repurchase rate to 7.5% from 7.75%, as predicted by 30 of 35 analysts in a Bloomberg News survey. (Source: Bloomberg)