News bits | 12 April 2012

Highlights of the day

§  Economics (Industrial Production Index): February 2012: A rebound powered by seasonality [download report]

The February industrial production index (IPI) for Malaysia jumped by 7.5% y-o-y due to seasonality. The growth was due to a strong rebound in manufacturing that saw growth of 9.5% y-o-y. The year-to-date 2012 IPI contracted by only 3.2% compared to 7.4% contraction seen in 2011. The YTD figures suggest that the IPI may continue to be resilient. The March figures will be reasonably free of seasonal effect, unlike January and February. Therefore, March figures will provide a clearer picture about the state of domestic economy. We project the IPI to grow by 3.4% y-o-y in March 2012.

§  Economics (External Trade): February 2012: Trade rebound is due to seasonal factor [download report]

February exports for Malaysia in current prices grew by 14.5% y-o-y after a meek growth of 0.4% y-o-y in January. Both January and February figures were affected by the Lunar New Year holidays. February imports grew 18.0% y-o-y versus 3.3% y-o-y seen in January. We project exports and imports to grow at 5.6% y-o-y and 5.8% y-o-y respectively in March.

Other reports

§  Plantation (Sector Update): Inventory levels drop below 2m mt (Maintain NEUTRAL) [download report]

§  Newz Bits [download report]

Other Malaysian news

§  Hong Leong Bank: To sell MIMB stake to HLC

§  Maybank: May be bidding for Philippines Islamic Bank

§  RHB-OSK: Various issues need to be resolved before merger to proceed

§  BAT: To grow market share

§  AirAsia: Thai unit plans IPO in May

§  BHIC: Subsidiary bags deal from Raytheon

§  Berjaya Corp: Mazda tie-up

§  Proton: Denies MD has quit

§  Hibiscus Petroleum: Enters Norway through Lime

§  Integrax: Amin raises stake to 23.5%

§  Scomi: Indian companies seek to set up plant in India

§  Banking: Status quo for DBS’ investments

§  Property: Tower atop LRT station

Global news

§  US: Fed says economy grew at ‘modest to moderate’ pace in March

§  US: Budget deficit widened to US$198.2bn in March

§  US: February wholesale inventories rise 0.9%, sales climb 1.2%

§  US: Job openings in increase as hiring accelerates

§  US: Swap regulators said to weigh dealer threshold of US$8bn

§  Europe: Italy sells EUR11bn of bills as debt crisis returns

§  China: March car sales rise 4.5% on widening discounts

§  China: Unexpected trade surplus as imports moderate

§  South Korea: Ruling party wins majority

Visit ECM Libra at https://www.ecmlibra.com/ecmlsmy

Our on-line trading portal at www.ecmmoney.com