Highlights of the day
§ Economics: (Industrial Production Index):January 2011: Don't panic because they were only on holidays [download report]
The January industrial production index (IPI) was severely affected by the Lunar New Year holidays. The moving seasonality effect caused January 2012 to have shorter work days compared to the same month in the previous year. As a result of the seasonality effect that is peculiar to most major Asian economies, the IPI merely grew by 0.2% y-o-y. February figures will improve as the moving seasonality effect recedes.
February’s MPOB statistics saw production levels remain low, in line with the seasonal downcycle period. Exports increased slightly y-o-y, as we view the ramifications of Pakistan’s recent PTA agreement with Indonesia taking effect. Stock levels increased slightly m-o-m as exports were relatively weaker than production. We maintain our NEUTRAL call with CPO ASP of RM3,000/mt for 2012.
Other reports
Other Malaysian news
§ Hong Leong Capital: MoF gives nod for MIMB-HLIB merger
§ AirAsia: Unit AirAsia X axes NZ route
§ Proton: Khamil strongly tipped to head Proton
§ Paramount: Pays RM125m for industrial land
§ Kimlun: Bags RM151.6m jobs
§ REDtone: Eyes government projects worth RM800m
§ SIG Gases: In joint venture with Iwatani
§ PFCE: Expands into oil and gas
§ Aviation: Carriers thrashing out ownership issues on 40 aircraft
Global news
§ US: Fed to test 19 banks’ capital against recession scenario
§ US: Budget deficit widened 4.1% to US$231.7bn in February
§ Europe: Euro ministers head toward final approval of second Greek rescue
§ India: Factory output rose 6.8% in January
§ Vietnam: Central bank cuts benchmark rates to support growth amid slowdown
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