tag:blogger.com,1999:blog-51229138124895721152024-12-19T11:26:43.166+08:00Bursa Malaysia (KLSE) stock market related analysis, Malaysia financial, market outlook. stock and share analysis.Unknownnoreply@blogger.comBlogger302125tag:blogger.com,1999:blog-5122913812489572115.post-25448276428577413062018-07-17T07:36:00.001+08:002018-07-17T07:36:10.689+08:00

Malaysia Market Strategy ● Street earnings estimates for the market have been downgraded since GE 14. Over the last three months, street's net profit estimate for the market has been reduced by 1.6%. As a result, the net profit growth forecast for the market has been trimmed to 7.0% for 2018, compared to ~9% prior to GE 14. ● With the exception of aviation, petrochemical, and banks sectors,

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-76036849381170398062018-05-23T07:52:00.001+08:002018-05-23T07:52:19.505+08:00

Construction and highway concession related stocks have capitulated with most stocks within our coverage plunging 20-44% last week (post general election), besieged by concerns - likely cancellation/deferment of some mega projects, potential contract renegotiation of ongoing mega projects, and toll road concessionaires being compromised. While investors have become overly-bearish and we foresee

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-58972010111331609532018-05-15T11:41:00.001+08:002018-05-15T11:44:01.016+08:00

Pushing the reset button on construction jobs ■ We downgrade the construction sector from Overweight to Underweight. Sector reforms under the new government post-GE14 puts all new projects under review. ■ We turn cautious on sector’s “Big Rail Theme”: ECRL, MRT 3, HSR, Gemas-JB 2T. ■ Potential knock-on effects include contract delays and downsides to job wins. ■ We raise RNAV disc. to

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-19047865885281283882018-04-27T08:26:00.001+08:002018-04-27T08:26:26.649+08:00

Platts: Malaysia Commodity Market Insights We attended the Platts’ Malaysia Commodity Forum. Oil will continue to be a long- term dominant in the global energy mix, with Asia’s modernisation driving the growth of oil/ petrochemical demand. Short-term and long-term views on oil and LNG fundamentals, coal, petrochemicals, shipping and steel were highlighted. Maintain MARKET WEIGHT on the sector

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-26696383142737263712018-04-09T11:17:00.001+08:002018-04-09T11:17:52.335+08:00

Last Friday, PM Najib announced the dissolution of Parliament. In the past, polling was held 17-32 days after dissolution. We believe the first weekend of May to be the likely polling date. FBMKLCI ended higher between dissolution to polling in 3/5 past GEs while volatility has always been lower during this period. BN’s manifesto was focused on employment and cost of living with financing of

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-484671390553399202018-03-20T14:25:00.000+08:002018-03-20T14:25:00.116+08:00

Steel prices contracted marginally in Feb 18 and rebounded slightly moving into March as Chinese steel prices started to recover in anticipation of a peak in construction activities. With a 9.0% qtd expansion in steel ASP, gross profit per tonne will continue to grow further. Steel stocks are oversold, partly on an overreaction to the US import tariff on Chinese products; steels stocks should see

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-56955508203502023332018-03-05T11:44:00.001+08:002018-03-05T11:44:56.173+08:00

■ KLCI was relatively unaffected by the sell-down in global markets as it fell by only 0.7% mom in Feb. The KLCI also outperformed the broader market and small caps. ■ It also outperformed MSCI Asia Pacific ex-Japan index (MXASJ), which fell 5% mom. ■ March has been a positive month for the Malaysian market over the past eight years. ■ Investors will focus on FOMC meeting, GE14

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-68394639547053094932018-02-23T07:54:00.001+08:002018-02-23T07:54:14.700+08:00

Malay and Indian groups driving consumption spend Malaysia’s household income expanded at 7.3% CAGR from MYR3,686/month in 2006 to MYR6,958/month in 2016. Out of the four main sources of income, the fastest growth was seen in property and investment, as well as current transfer from the government. Key observations in Malaysia Malaysians are earning more than spending: Monthly household

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-48393655962421713242018-02-13T08:31:00.001+08:002018-02-13T08:31:36.150+08:00

The significant selldown in Bursa last week, in tandem with the meltdown of global equity bourses, creates good opportunities in selected BUY-rated stocks. We foresee a significant recovery in the FBMKLCI as we near Malaysia’s GE (GE14, expected in 2Q18). Our favourite rebound plays include large-caps Genting Bhd, CIMB, YTL Power and BAT, and small/mid caps Gabungan AQRS, Ann Joo, Yong Tai and

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-51777556294315382312017-08-01T10:29:00.001+08:002017-08-01T10:29:17.763+08:00

● At an investor presentation, Astro’s management team outlined its strategy to ensure that the company can withstand competition from OTTs and behavioural changes among today’s consumers to sustain its leadership in Malaysia’s media industry. ● In short, the company hopes to retain its ~70% household penetration in Malaysia so that it can sustain its revenue growth trajectory by driving its

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-78483873855339772172017-07-12T08:23:00.001+08:002017-07-12T08:23:33.426+08:00

FBM KLCI valuation neither too cheap nor too expensive relative to regional peers. As at the close of week ended 30 June, the PER of FBM KLCI stood at 16.3x based on current year earnings. With a standard deviation (SD) to the PER of 0.93, the valuation of FBM KLCI is neither too cheap nor too expensive in comparison to its main regional peers. FBM KLCI: Valuation against regional markets (as at

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-58579902048699823712017-04-05T10:09:00.001+08:002017-04-05T10:09:03.247+08:00

MMC Corporation (MMC MK/ HOLD/RM2.49/Target: RM2.50) Increases Stake In Penang Port To 100%; Develops Carey Port   WHAT’S NEW 1) Acquires remaining 51% stake in Penang Port for RM220m. MMC Corporation will acquire the remaining 51% stake in Penang Port Sdn Bhd (PPSB) for RM220m cash in order to gain full control of PPSB and be in a position to determine its future strategic

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-5083340876231989802017-02-08T09:50:00.001+08:002017-02-08T09:50:16.384+08:00

OSAT: Gripping The Trend Riders The launch of a new-generation smartphone model in the US in Sep 17 and a smartphone model in Korea in 1H17 could create a strong replacement cycle. Relevant OSAT beneficiaries are ramping up capacities to ride on this smartphone wave. Globetronics is making a strong comeback with mass production of new sensors by May while Inari is on track to add new

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-79977970723376097082017-02-07T08:58:00.001+08:002017-07-13T10:05:38.425+08:00

Turn of the Month effect. Our top 5 picks for Jan/Feb 2017 cycle KLCI: 1,680.69 points 2017    Year-end Target: 1,830 points Turn of the Month effect. Wealth of studies regarding the “Turn of the Month” effect is statistically conclusive that majority of equity stocks exhibit rising price during the last four days and the following first three days of every month. Therefore it

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-50966626793207885162017-02-03T08:53:00.001+08:002017-02-03T08:53:01.459+08:00

BNM Dec 16 Statistics: Deposit Growth Improves Leading loan growth indicators, such as loan approval (-12.8% yoy) and application (-8.0% yoy), in Dec 16 continued to point towards a moderating growth environment. On a brighter note, the sharp mom growth recovery in deposits should help ease competition for deposits. We continue to like Public Bank and BIMB for their high provision buffers,

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-78953830726402284552017-01-23T07:42:00.001+08:002017-01-23T07:42:18.328+08:00

● We recently hosted MYEG's management team at our flagship ASEAN conference in Singapore. MYEG was represented by its Group Managing Director, Mr T S Wong, and Head of Corporate Finance and Investor Relations, Ms Chong Mei Yee. ● Following the event, we gather two things. (1) The Immigration Department of Malaysia remains serious about legalising illegal foreign workers (it recently froze

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-75350112399138260032017-01-12T07:11:00.002+08:002017-01-12T07:11:34.569+08:00

Foreseeing more catalysts around the corner ■ Muhibbah kicks off 2017 with a RM438m infra contract win from Qatar.   ■ This supports the group’s renewed optimism at our Malaysia Corp Day event last week. ■ 2017’s tender book stands at RM5bn of which RM4bn are marine/infra contracts. ■ We expect 1H17 to be a period of good newsflow for domestic and overseas jobs. ■

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-47371164096626493802017-01-10T06:48:00.002+08:002017-01-10T06:48:50.492+08:00

Not out of the woods yet ● The country's economic backdrop provides a conducive environment for the banking sector. However, the main concern that is overshadowing the promising economic growth prospects for Malaysia is the recent currency weakness. ● The RM has weakened 5% against the USD since the US presidential election, and restrictions imposed by the central bank on offshore

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-47211645028633016982017-01-04T11:17:00.001+08:002017-01-04T12:08:48.387+08:00

MYR weaker, foreign outflows, negative earnings momentum ● 2016 has been a difficult year for Malaysia: the KLCI fell by 3.0% to 1,641. The Malaysian stock market underperformed the NJA (in USD) by 10% after underperforming in 2015 and 2014. The MYR depreciated 4.3% to close at RM4.4862 against the USD. ● Fortunately, there is some light for commodities: Brent oil +52% to US$56.8, palm oil

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-91119713720762551682016-11-28T11:58:00.001+08:002016-11-28T11:58:21.578+08:00

Last week, we attended the 12 th Indonesian Palm Oil Conference and 2017 Price Outlook (IPOC). Key takeaway is that CPO price outlook is expected to remain volatile for 2017, ranging from RM2,000 to RM3,300 per tonne. This is backed by factors such as i) weakening of MYR, ii) growing biodiesel markets, iii) recovery effect of El Nino and iv) premiums between CPO and soybean oil as well as CPO and

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-89652342824320825502016-11-21T10:17:00.001+08:002016-11-21T10:17:14.366+08:00

■ A new independent valuation report on Splash is set to be completed next month,  according to a newspaper report. ■A price tag equivalent to a 15% discount to BV is being negotiated, the report said. ■ Water deals could be completed in April. Gamuda and Taliworks are beneficiaries. Independent valuation report on Splash in Dec ● The Edge Weekly, quoting unnamed

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-69261774464830948282016-11-11T06:20:00.001+08:002016-11-25T12:31:39.155+08:00

It’s a surprise outcome. The results from the many polls conducted prior to the election especially those after the presidential debates showed Clinton has a clear lead over Republican candidate, Trump. That led to the market to heavily price in the case of Clinton winning the election. At the end, both the polls and market proves to be wrong. With the win in Wisconsin, Trump gains 276 votes,

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-19542092516725935992016-11-09T08:02:00.001+08:002016-11-09T08:02:06.676+08:00

SECTOR UPDATE Sector core net profit growth remained moderate at 1.5% yoy and 1.6% qoq in 3Q16. We expect 4Q16 to be a stronger quarter for the retail and hotel segments in view of the holiday and festive season. We also think the implementation of the revised REIT guidelines will take place by end-16 or early-17. Maintain OVERWEIGHT on the sector, given the persistently low interest rate

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-12135102307180552072016-10-24T13:14:00.001+08:002016-10-24T13:14:02.662+08:00

hh ● Malaysia Budget 2017 looks less supportive for growth than we initially anticipated, and as such raises some downside risk to our 2017 GDP forecast (CS: 4.5%; consensus: 4.3%). ● Spending is expected to decline by 0.7 pp of GDP, with cuts concentrated in public university grants and also further subsidy rationalisation, partly offset by increased handouts to consumers. ● It is also

Unknownnoreply@blogger.comtag:blogger.com,1999:blog-5122913812489572115.post-73070191186107881852016-10-20T11:22:00.001+08:002016-10-20T11:22:54.062+08:00

  According to The Sun Daily, the structure of the Cooking Oil Price Stabilisation Scheme (COSS) is about to change from next month as part of government subsidy rationalisation plan, citing the source from the Malayan Edible Oil Manufacturers' Association (Meoma).    The new structure will be restructured into two phases The first phase will start from Nov 1 until end of the

Unknownnoreply@blogger.com