News Bits | 13 July 2012

Highlights of the day

§  Building Materials (Sector Update): Local steel players to receive anti-dumping protection? (Maintain OVERWEIGHT) [download report]

The Government of Malaysia has begun an investigation on the alleged dumping of steel wire rods imported from China, Taiwan, Indonesia, South Korea and Turkey. A preliminary determination on whether there is sufficient evidence of wire rod dumping activities and injury to the Malaysian steel industry will be made by the end of October 2012 and if the final determination is affirmative, the Government may impose anti-dumping duties to rectify the situation. We do not rule out the possibility of this happening as the Government has taken other steps to safeguard the local steel industry against imports of cheap but substandard steel products. Maintain our OVERWEIGHT call on the steel sector.

§  WCT (Company Update): WCT strikes again! (Maintain BUY, TP: RM3.20) [download report]

WCT has clinched its fourth contract win for FY12 worth RM391m. This is for the proposed fourth lane widening of a 22km PLUS North-South Highway stretch between Seremban and Nilai. YTD, WCT has topped up its orderbook with RM1.1bn worth of new contracts, which makes up 50% of our full year orderbook replenishment forecast of RM2.2bn. WCT remains our top BUY in our sector coverage, with sum-of-parts target price of RM3.20.

Other reports

§  Newz Bits [download report]

Other Malaysian news

§  CIMB: RBS Indian buy terminated            

§  Starhill REIT: Payout up 18%

§  UMLand: To be privatised by Syed Mokhtar and investors

§  Muhibbah: Eyes more Gorgon deals

§  IPO: IHH Healthcare raises over RM5bn

§  Banking: Moody's sees stable outlook for sector

§  Construction: MRT Corp awards 4 packages worth RM767m            

Global news

§  US: Jobless claims plunge as fewer auto plants shut down

§  US: Import prices in fell in June by most since 2008

§  Europe: Region industrial production unexpectedly rebounds

§  China: New yuan loans exceed forecasts, forex reserves decline

§  Japan: BOJ refrains from adding stimulus, spurring stock decline

§  South Korea: Bank of Korea unexpectedly cuts rates to join global easing

§  South Korea: Bank of Korea trims 2012 growth forecast

§  Indonesia: Central bank holds rate as inflation, Rupiah constrain easing

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