Our market outlook for 1Q2012 was proven wrong when Europe ’s LTRO came in earlier than expected and spurred
the FBMKLCI up to 1600. Our 1Q2012 strategy worked out better, with the FBMKLCI
lagging regional markets, our dividend yield stocks outperforming the FBMKLCI,
and bottom-fishing stocks like Tenaga Nasional paid off. For 2Q2012, the
FBMKLCI is toppish at 1600 but downside is also limited in the run-up to
General Elections. We are thus Neutral on all sectors except for an Overweight
on Construction and Building Materials. Buy IJM, WCT, Lafarge, Lion Industries.
In Plantations, switch from IOI to KLK.
§ Economics (Consumer Price
Index): February
2012: The liberalization effect wears off [download
report]
February 2012 inflation rate moderated to 2.2% y-o-y compared to 2.7%
y-o-y in January. We estimate the core inflation to be at 1.9% y-o-y, unchanged
from the month before. Headline inflation is likely to continue to grow slower
in March at 2.0% y-o-y and the estimated core inflation is projected to slow to
1.8% y-o-y.
Other reports
Other Malaysian news
§
Genting Singapore
§ MISC: S&P downgrades credit rating
§ KPJ
Healthcare: Buys into Indonesia
§ AEON: Extends its
community reach in region
§ Wah
Seong: Pipe-coating job in Turkmenistan
§
GuocoLand: Expects 18% yield from PJ City, PJ Corp acquisitions
§ Tanjung Offshore: Wants to focus on core strength
§ Deleum: Major breakthrough
§ AIC
Corp: LTAT seeks board seat on Temasek Formation
§
EP Manufacturing: Buy positive for long term
§ Perak
Corp: Unit enters JV
§
I-Berhad: Boss out to
fulfill i-City dream
§ Automotive: MAA says new rules already impact sales of new
vehicles
§ Property: No additional restrictions on housing loans
§ Property: Developers still
gung-ho on landbanking
Global news
§ US
§ US
§ Europe : Rehn expects debt-crisis firewalls to be
reinforced
§ Japan
§ Singapore
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