The Star Online: Business
The Star Online: Business |
- Affin Research maintains "Add" on MISC
- KLCI higher in early trade, plantations, UMW up
- CIMB Research downgrades Malaysian auto sector to Neutral
| Affin Research maintains "Add" on MISC Posted: KUALA LUMPUR: Affin Research is maintaining its "Add" call on MISC Bhd with a raised target price of RM6.12 from RM5.05. It said MISC's 66.5% owned MMHE has a tenderbook of over RM4bil with an equal share of domestic and overseas prospects. "As at end-March 2013, MMHE had a RM2.3bil of orderbook backlog, most of which will be completed by end-2013 (except for the Malikai TLP project). The group is actively bidding for new contracts but we expect the contract flow to only pick up from fourth quarter 2013 onwards," it said. "Given the heavy delivery schedule as well as bigger capacty coming on stream in 2013, we do not expect rates to improve signifcantly in 2H13. "However, the shipping outlook as well as freight rates are anticipated to fare better from 2014 onwards, as the last heavy bout of new capacity delivery into the market will be this year," it said. It added given the heavy delivery schedule in 2013, freight rates for VLCC have continued to stay under pressure – albeit some recovery from its low levels in first quarter of 2013. "The average VLCC spot rate in first half of 2013 was around US$8,560 per day compared to an average of US$6,650 per day registered in first half of 2012. "The trend is similar with Aframax, although rates have held up better with lower new tonnage into the market. The average spot rate for aframax (Caribbean to US Gulf) in first half of 2013 was US$11,770 per day, only 8% lower from the year before," it said. It added for chemical tankers, the slowdown in new deliveries as well as limited new tonnage into the market, has led to an upward trend in rates. "In addition, demand for chemicals is buoyant in the Far East as well as China and India. In first quarter of 2013, the average spot rate for chemical tankers (Rotterdam – Far East) rose by 15% on-quarter and 2% on-year to US$118/day," it said. |
| KLCI higher in early trade, plantations, UMW up Posted: KUALA LUMPUR: Key blue chips advanced in early trade on Tuesday, supported by gains in plantations, UMW and HLFG while the broader market was firmer with some nibbling on small cap and lower liners. At 9.20am, the FBM KLCI was up 4.64 points to 1,802.32. Turnover was 124.22 million shares valued at RM94mil. There were 205 gainers, 79 losers and 170 counters unchanged. United Plantations was the top gainer, albeit with just 100 shares done, adding 58 sen to RM27.50, KL Keping rose 22 sen to RM21.50 and Batu Kawan 20 sen to RM18.94. BAT recouped part of the late losses from Monday, adding 44 sen to RM60.22. HLFG advanced 28 sen to RM14.58, UMW 12 sen to RM14.32 and Petronas Gas 12 sen to RM21. ABM Fujiya rose 2.5 sen to 62.5 sen on its trading debut. It was the most active with 16.88 million shares done. |
| CIMB Research downgrades Malaysian auto sector to Neutral Posted: KUALA LUMPUR: CIMB Equities Research is downgrading the Malaysian automobile sector rating from Overweight to Neutral. It said on Tuesday the market is reaching saturation, following its recent UMW downgrade to Neutral on the back of its tempered Toyota sales forecast in 2013. "June industry figures confirm our 2013 outlook. Our total industry sales forecast of 630,0oo in 2013 remains unchanged. We remain positive on the catalyst of non-national car segment, which has captured 48% market share in 1H13 (versus 45% in 1H12)," it said. CIMB Research said Tan Chong is the best proxy for its non-national theme and its top pick. "We downgrade DRB-Hicom from Trading Buy to Neutral, as it is the most vulnerable to tighter credit and the loss of market share in the national segment," it said. |
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