Highlights of the day
May leading economic indicator continued to suggest
that the Malaysian economy would grow in the near future. The leading index
grew by 2.3% after 2.1% y-o-y growth in April. The coincident index in the same
month also grew at about the same rate: 2.5% after 1.8% y-o-y in April. We are
maintaining our GDP growth forecast of 4.0% for the whole of 2012.
Total vehicle sales in June grew 35% y-o-y to 56,604 units mainly backed
by improved sales from Perodua, Proton and Toyota
§
Petronas
Chemicals Group (Quick bits): Expecting
a softer 2QFY12 (Maintain BUY; RM7.69 ) [download
report]
We visited the management of Petronas Chemical and were given a tour of
its Optimal olefins plant in Kerteh, Terengganu recently. Key takeaways from
the visit are: (i) we expect lower plant utilization q-o-q due to a scheduled
plant shutdown or maintenance in 2QFY12; (ii) we understand that the SAMUR
project is progressing well and on track for completion by early 2015; and
(iii) that the company is venturing into higher margins products. Maintain Buy with TP of RM7.69.
Other reports
Other Malaysian news
§ Sime Darby: Plans Liberian palm
oil bulking facilities
§ CIMB: Prices US$350m notes
§
FGVH:
PKNK’s sale of FGVH shares won’t affect any quarter
§
MMC: Eyeing JV with
PAAB
§ AFG: Not primed for
M&As
§
DRB-Hicom:
Group Lotus unveils Exige S, flagship store
§
DRB-Hicom,
Proton: Lifeline for Lotus
§
Guan
Chong: Gets shareholder nod for secondary listing in Singapore
§
Southern
Steel: To build flat-steel plant
§
MK
Land: To build more affordable housing
§
Perwaja:
On track to get large iron ore mine
§ Banking:
Mobile
§ Construction,
Property: Busy time for Prasarana
§ Plantation
§ Power: Foreign players eye local power assets
Global news
§
US
§
Europe: IMF to stop further aid tranches to Greece
§
South Korea
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