Maybank Research - 24 April 2013

kltrader

Publish date: Wed, 24 Apr 2013, 10:13 AM

Technicals

FBMKLCI: Softening From The 1,716.47 Peak

The FBMKLCI declined 6.29 points to close at 1,700.39 yesterday. Its resistance levels of 1,700 and 1,716 will cap market gains, whilst obvious support areas are located at 1,688 and 1,699.

Trading idea is a Take Profit call on PARKSON with downside target areas at MYR4.00 & MYR3.80.

Other Local News

Axiata: 4G LTE to boost revenue by end-2014. Celcom Axiata Bhd expects its 4G long-term evolution (LTE) service to contribute to the company's revenue by end-2014. The revenue contribution would be reasonably small for this year but quite significant by end-2014 or early 2015. (Source: The Star)

Genting Malaysia: Genting-Alliance JV plans USD500m IPO in Manila. A joint venture between casino operator Genting Hong Kong Ltd and Philippine conglomerate Alliance Global Group Inc has hired five banks for an up-to-USD500m initial public offering in Manila. Travellers International Hotel Group, as the Genting-Alliance venture is called, plans to go public in 3Q13. (Source: The Star)

MISC: 12 months before new offer. It would take 12 months before Petroliam Nasional Bhd (Petronas) can launch a new takeover offer for MISC Bhd and not six months as previously reported. This is according to Section 34 of the Malaysian Code on Take-Overs and Mergers (2010). (Source: The Star)

Coastal Contracts: To sell nine vessels with a total value of MYR434m. Coastal Contracts Bhd has secured contracts for the sale of nine offshore vessels with a total value of MYR434m. (Source: The Star)

Tradewinds: Gets nod for privatization. Tradewinds Corporation Bhd shareholders have approved the proposal for its major shareholder and parties acting in concert to privatise the company. The privatisation will be via selective capital reduction and repayment exercise. Entitled shareholders will receive a total capital repayment of MYR347m, or MYR1.10 a share. (Source: The Star)

Infrastructure: Shah Alam LRT link in pipeline. The government may build a third light rail transit (LRT) line from Kelana Jaya to Port Klang, believed to cost MYR5b to MYR6b. Dubbed the Shah Alam LRT line, Syarikat Prasarana Negara Bhd (Prasarana) is expected to call for tenders for the project next year, after a proper due diligence to be undertaken by the Land Public Transport Commission (SPAD) is completed. (Source: Business Times)

Aviation: Air France returns to KLIA and wants to explore cooperation with MAS. After a 20-year absence, Air France has returned to KL International Airport (KLIA) and now that it is here, it wants to explore areas of cooperation with Malaysia Airlines (MAS). (Source: The Star)

Outside Malaysia

U.S: Home sales strengthen as builders drive growth. Purchases of single-family properties climbed 1.5% last month to a 417,000 annual pace, Commerce Department figures showed in Washington. (Source: Bloomberg)

E.U: Services and manufacturing output contracted for a 15th month in April as the currency bloc struggled to emerge from a recession. A composite index based on a survey of purchasing managers in both industries held at 46.5, London-based Markit Economics said. A reading below 50 indicates contraction. (Source: Bloomberg)

Germany: Factory and service company indexes unexpectedly dropped to show contraction, suggesting weakness in the euro region is persisting into the second quarter. A gauge of manufacturing from a survey by Markit Economics fell to 47.9 in Apr 2013 from 49 the previous month. For services, the index fell to 49.2 from 50.9. Readings below 50 show contraction. (Source: Bloomberg)

Spain: Recession eases as Rajoy prepares growth initiative. Gross domestic product fell 0.5 % QoQ from the fourth quarter, when it dropped 0.8% QoQ, the most since 2009, the Bank of Spain said in its monthly bulletin. (Source: Bloomberg)

China: Recovery falters as manufacturing growth cools in April. The preliminary reading of 50.5 for a Purchasing Managers' Index released by HSBC Holdings Plc and Markit Economics compared with a final 51.6 for March. A reading above 50 indicates expansion. (Source: Bloomberg)