31st July 2012

Maybank Research - 31 July 2012

SECTOR UPDATE
Plantation: Maintain Neutral

Malaysia Raises Duty-Free CPO Quota

2m tonnes more of duty-free CPO exports. Responding to India's move in doubling import taxes on refined palm oil, the Malaysian government is reported to have raised Malaysia's 2012 duty-free CPO export quota to 5.6m tonnes (+2m tonnes), equivalent to ~30% of Malaysia’s overall annual CPO output. Albeit supportive of CPO prices in the short run, this interim measure will not resolve the sector's issues and refiners will continue to be worse off. We maintain our Neutral call on the sector, with selective BUYs on stocks with high FFB output growth going forward: First Resources, Sarawak Oil Palms, Ta Ann.
Technicals
Watching the ECB & the US Fed

The FBM KLCI climbed 7.41 points to close at 1,632.35 yesterday. Its resistance levels of 1,632 and 1,647 will cap market gains, whilst weaker support areas are located at 1,605 and 1,623.

The Trading Idea is a TAKE PROFIT call on MAXIS with downside target prices of MYR5.62 and MYR5.69.
Other Local News
Maybank: Confident of keeping BII stake. Maybank is optimistic that it will be able to keep its controlling stake in Bank Internasional Indonesia (BII) despite the recent change in bank ownership rules in Indonesia. Maybank, which bought BII in 2008, currently owns 97.3% of Indonesia's eighth largest lender. BII yesterday reported a solid 61% jump in net profit for the first half of this year. Two weeks ago, Indonesia's central bank issued new rules limiting ownership in domestic banks at 40%. However, it said it would allow waivers if the owners were listed banks that maintained high levels of corporate governance and were in sound financial health. (Source: Business Times)

YTL: Opens resort off Sabah. YTL Hotels has started operating the first of its two planned luxury resorts on islands off Borneo. The diversified group started operating the Gaya Island Resort on July 1, YTL's first luxury property which it also owns in Sabah and Sarawak. The resort, built at an estimated cost of MYR75m, offers a total of 120 villas and a two-bedroom suite. Gaya Island Resort general manager Jeffrey Mong said the resort is targeting guests from the UK, Europe, Australia, Japan, Hong Kong, Singapore and Malaysia. The resort is expecting to garner an average room rate of above USD350 (MYR1,102) and an average occupancy of over 50% in its first year of operation. (Source: Business Times)

Property: PM launches MYR26b financial district. PM Datuk Seri Najib Razak yesterday launched the city's new financial district, called the Tun Razak Exchange (TRX), which has the indicative GDV of MYR26b. TRX, renamed from the Kuala Lumpur International Financial District (KLIFD), is expected to attract over 250 global companies and is slated to become a global centre for international finance, trade and services. With 1Malaysia Development Bhd as the master developer, the TRX will be build on a 60-acre land off Jalan Tun Razak and will take 15 years to complete. (Source: The Edge Financial Daily)

Regulations: GST unlikely to be in 2013 Budget. The 2013 Budget is not likely to introduce the goods and services tax (GST), said Deputy Finance Minister Datuk Donald Lim Siang Chai. Prime Minister and Finance Minister Datuk Seri Najib Razak is scheduled to table the 2013 Budget in Parliament on September 28. The GST Bill was tabled initially for reading in Parliament in December 2009 but its second reading was postponed. Critics of the GST proposal say the government should first address revenue leakages and wastage before introducing new taxes to boost its income. Lim then went on to say tax incentive proposals submitted by trade bodies, lobby groups and the public are being scrutinised by his ministry. (Source: Business Times)
Outside Malaysia
E.U: Economic confidence in the euro area fell more than economists forecast to the lowest in almost three years in July, suggesting the economy's slump extended into the third quarter as governments struggled to tame the debt crisis. An index of executive and consumer sentiment in 17-nation euro area dropped to 87.9 from 89.9 in June, the European Commission in Brussels said. That's the lowest since September 2009. (Source: Bloomberg)

U.K: Mortgage approvals fell more than forecast in June to an 18-month low as concerns about the euro area mounted and Britain's recession deepened. Lenders granted 44,192 loans to buy homes, compared with a revised 50,544 the previous month, the Bank of England said. That's the lowest since December 2010. A separate report showed retail sales slowed in July. (Source: Bloomberg)

China: Announced a jump in planned railway spending and the State Council called for private investment in utilities and health care as Premier Wen Jiabao tries to reverse an economic slowdown. The Ministry of Railways, the nation's largest corporate debt issuer, plans to spend CNY 470b (USD 74b) on railroads and bridges this year, according to a bond prospectus. That's the second increase in July, representing a combined rise of about 14% from a previous figure. (Source: Bloomberg)

Japan: Unexpected drop in unemployment in June. The rate fell to 4.3% from 4.4% the previous month, the statistics bureau said. (Source: Bloomberg)

India: Inflation is major challenge as growth slows, RBI says. Threats to the economy "have been amplified by decelerating global trade and domestic supply constraints," the central bank said ahead of its rate decision in Mumbai. At the same time, "persistent inflation limits the space for monetary policy to revive growth." (Source: Bloomberg)

S. Korea: Output unexpectedly falls as Europe caps export demand. Output fell 0.4% MoM last month from May when it climbed a revised 1.3% MoM, Statistics Korea said. Production rose 1.6% YoY. (Source: Bloomberg)

now on BFM

BFM Radio - The Business Station
Norman Tam, Tencent, WeChat in Tech Talk (Enterprise) at 12pm

creator for WEIXIN

Cals wrote:

jeefoh wrote:

Cals wrote:sat morning the edge read with kids on the breakfast table huh?

cals will do that for sure

Wonderful World wrote:

jeefoh wrote:

Cals wrote:sat morning the edge read with kids on the breakfast table huh?

cals will do that for sure [You must be registered and logged in to see this image.]

junior apprentice...

start young

Hey if they can earn their college fees...why not?

looks like everyone early lunch ka?

ding ding!

lunch time!

1631.57 -0.78

[You must be registered and logged in to see this image.]

bye bye [You must be registered and logged in to see this image.]

Cals wrote:

jeefoh wrote:

Cals wrote:sat morning the edge read with kids on the breakfast table huh?

cals will do that for sure [You must be registered and logged in to see this image.]

Wonderful World wrote:

jeefoh wrote:

Cals wrote:sat morning the edge read with kids on the breakfast table huh?

cals will do that for sure [You must be registered and logged in to see this image.]

junior apprentice...

[You must be registered and logged in to see this image.] start young

monday to friday after school learn FA and TA. sat and sun read the edge and the star business news. [You must be registered and logged in to see this image.]

mabs wrote:

Cals wrote:

jeefoh wrote:

Cals wrote:sat morning the edge read with kids on the breakfast table huh?

cals will do that for sure [You must be registered and logged in to see this image.]

Wonderful World wrote:

jeefoh wrote:

Cals wrote:sat morning the edge read with kids on the breakfast table huh?

cals will do that for sure [You must be registered and logged in to see this image.]

junior apprentice...

[You must be registered and logged in to see this image.] start young

monday to friday after school learn FA and TA. sat and sun read the edge and the star business news. [You must be registered and logged in to see this image.]

lol boy is uptrend or downtrend, asks the father

jeefoh wrote:

sun wrote:going for lunch soon, today no home cook food, eat MSG food

me hari hari kena makan MSG food neh~

don't eat so much MSG food can cause white hair

kppl wrote:

sun wrote:

kppl wrote:

sun wrote:

Cals wrote:

just heard the owner on BFM
[You must be registered and logged in to see this link.]

fantastic, jelly cake is a good choice, lesser cholesterol

Had this for many functions, kids loved it. Sun, ur kids 3rd bday, time to open a trust account so by 18 got cap to trade la!

if hubby know will heart attack 2nd time

My kids will get their cds with cap for their 18th birthday

wah! so nice, you can retire early

jeefoh wrote:

kppl wrote:

sun wrote:

kppl wrote:

sun wrote:

fantastic, jelly cake is a good choice, lesser cholesterol

Had this for many functions, kids loved it. Sun, ur kids 3rd bday, time to open a trust account so by 18 got cap to trade la!

if hubby know will heart attack 2nd time

My kids will get their cds with cap for their 18th birthday

what a gud daddy

your dad good too, look at you, you are earning in share market now

sun wrote:

jeefoh wrote:

kppl wrote:

sun wrote:

kppl wrote:
Had this for many functions, kids loved it. Sun, ur kids 3rd bday, time to open a trust account so by 18 got cap to trade la!

if hubby know will heart attack 2nd time

My kids will get their cds with cap for their 18th birthday

what a gud daddy

your dad good too, look at you, you are earning in share market now

lol.. havnt cover bck yet~ going to

sun wrote:

kppl wrote:

sun wrote:

kppl wrote:

sun wrote:

fantastic, jelly cake is a good choice, lesser cholesterol [You must be registered and logged in to see this image.]

Had this for many functions, kids loved it. Sun, ur kids 3rd bday, time to open a trust account so by 18 got cap to trade la! [You must be registered and logged in to see this image.]

if hubby know will heart attack 2nd time [You must be registered and logged in to see this image.]

My kids will get their cds with cap for their 18th birthday [You must be registered and logged in to see this image.]

wah! so nice, you can retire early

wah good good

phoenix777 wrote:

sun wrote:

kppl wrote:

sun wrote:

kppl wrote:
Had this for many functions, kids loved it. Sun, ur kids 3rd bday, time to open a trust account so by 18 got cap to trade la! [You must be registered and logged in to see this image.]

if hubby know will heart attack 2nd time [You must be registered and logged in to see this image.]

My kids will get their cds with cap for their 18th birthday [You must be registered and logged in to see this image.]

wah! so nice, you can retire early

wah good good

18 year road map

kppl wrote:

phoenix777 wrote:

sun wrote:

kppl wrote:

sun wrote:

if hubby know will heart attack 2nd time [You must be registered and logged in to see this image.]

My kids will get their cds with cap for their 18th birthday [You must be registered and logged in to see this image.]

wah! so nice, you can retire early

wah good good

18 year road map

by right should train them trade at 12 years old.

1 wrote:

kppl wrote:

phoenix777 wrote:

sun wrote:

kppl wrote:
My kids will get their cds with cap for their 18th birthday [You must be registered and logged in to see this image.]

wah! so nice, you can retire early

wah good good

18 year road map

by right should train them trade at 12 years old.

that is preferred lol

[You must be registered and logged in to see this image.]

bb off to work

Cals wrote:bb off to work

lol :D

Bursa berserker wrote:

Cals wrote:bb off to work

lol :D

not to be mistaken with u

Cals wrote:

Bursa berserker wrote:

Cals wrote:bb off to work

lol :D

not to be mistaken with u

haha

wads there to watch now

boring day DO :(