Highlights of the day
§
Economics
(Consumer Price Index): May 2012:
Eight consecutive month of deceleration [download
report]
The Consumer Price Index decelerated further in May.
Inflation slowed to 1.7% from 1.9% y-o-y in the previous month. May core
inflation decelerated to 1.5% from 1.6% y-o-y as witnessed in April. Despite
the overall deceleration, the food CPI saw marked increase. We forecast June
headline inflation to tick up slightly to 1.8% y-o-y and core inflation to
remain at 1.5% y-o-y. Furthermore, we do not expect any change in the OPR.. (refer to report for details)
§
DiGi.com
(Company Update): DiGi,
always the smarter choice! (Maintain HOLD, TP: RM4.05) [download
report]
We remain cautious on competitors’ aggressive rate-cutting which could
bite into DiGi’s prepaid market share. Nonetheless, we are optimistic on the
Group’s ability to maintain its generous dividend payout of >100%. DiGi’s
recently proposed capital repayment of 6.4sen/share, which gives an expected
FY12 net yield of c.6% appeals to investors seeking refuge in defensive plays.
Maintain HOLD with a revised target price of RM4.05. (refer to
report for details)
Other Malaysian news
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Maybank: Consumer banking
set to expand ‘under controlled aggression’
§ CIMB: Thai unit no
longer an underdog
§
Axiata: Celcom unveils data package for new iPad
§
Felda Global: Louis Dreyfrus Commodities Asia confirms tie-up
§
Dialog: Signs MoU with Halliburton
§
IJM
Land
§
Alam Maritim: Sees higher revenue after combining operations
§ Construction: Massive
dredging at Samalaju
Port
§
Economy: Export of medical devices projected to hit RM12.5bn
Global news
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Europe: Merkel
backs debt sharing in Germany
§
India
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Taiwan
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