Thursday, February 16, 2012

Newz Bits 160212

Highlights of the day
§         Construction (Sector Update): Construction to fare better in CY12 (Maintain OVERWEIGHT) [download report]
From the recent 8th Malaysian Construction Industry Review and Outlook seminar, we gather that domestic construction activity is likely to gain traction with projected construction GDP growth of 7% this year (CY11: 3.5%), underpinned by the implementation of pipeline government and private projects. We maintain our BUY call on IJM and WCT, for being potential beneficiaries of major projects like the West Coast Expressway and Gemas-Johor Bahru double tracking due to their strong engineering track record and healthy financial standing. Maintain OVERWEIGHT

§         Economics: 4Q2011: A respectable showing before an expected slowdown. [download report]
The Malaysian economy grew slower at 5.2% y-o-y in 4Q2011 compared to 5.8% y-o-y growth observed in 3Q2011. This allowed the economy to grow at an annual rate of 5.1%. The growth was primarily driven by the domestic economy while the trade channel continued to exhibit weak growth, reflecting the stark reality of a deteriorating global economy. Incorporating our expectation of a global economic slowdown, we project the economy to grow at a slower pace of approximately 4.0% in 2012.

Other reports
§         Newz Bits [download report]

Other Malaysian news
§         AirAsia: Plans low-cost airline for gulf region
§         AirAsia: Big jump in AirAsia X revenue on positive growth, affordable fares
§         SP Setia: London’s Battersea Power Station on sale again
§         Sapura-Kencana: To acquire Berantai Field Production
§         Mulpha International: Sells Mantra stake for RM111m
§         Shin Yang Shipping: Builds on fleet 
§         Can-One: Kian Joo stake sale impasse
§         Cypark Resources: Solar farming to be key earner
§         Compugates Holdings: Set to secure RM2bn solar jobs in Sabah
§         KYM Holdings: Unit inks reclamation deal in Perak
§         Banking: Indonesia’s withdrawal of ownership ruling to benefit Malaysian banks
§         Construction: Seven to bid for new highway
§         Construction:  Kesturi to expand highway
§         Plantation: CPO price seen fluctuating

Global news
§         US: A few on FOMC saw need for asset purchases ‘before long’
§         US: International demand for YS assets cooled in December
§         US: Factories churning out more goods buoy growth
§         US:  New York area factories expand at fastest pace since June 2010
§         Europe: Economy shrinks for the first time since 2009
§         Europe: Europe demands more Greek budget controls in bid to forge rescue
§         Europe: Jobless claims rise more than forecast as cuts bite
§         Singapore: Retail sales rise as jobs withstand weakening economy


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