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Reports Malaysia

Malaysia stock market and companies daily report (March 14, 2014)

March 14, 2014, Friday, 07:27 GMT | 03:27 EST | 11:57 IST | 14:27 SGT
Contributed by Shares Investment


Malaysia’s January IPI Up 3.7%

- Malaysia’s Industrial Production Index (IPI) grew 3.7 percent in January on a year-on-year basis, below a median market forecast of a 4.1 percent increase based on a Reuters survey. The Statistics Department attributed the growth to a rise across all indices.

- Under its manufacturing segment (up 4.7 percent), electrical and electronics products as well as petroleum, chemical, rubber and plastic products led the growth with increases of 13.3 percent and 6.7 percent respectively. Crude oil and natural gas drove gains in the mining sector (1.5 percent higher) while the electricity sector grew 0.2 percent.

- In seasonally adjusted terms, January’s IPI decreased 1.3 percent on month-on-month basis.

Significance: Alliance Research chief economist Manokaran Mottain opines a possible slower IPI growth in February, in line with a shorter working month due to the Chinese New Year holidays. However, the long-term trends remains intact, as reflected by the robust growth that is in line with the steady expansion in manufacturing activities worldwide.


RHB Research Maintains Overweight Stance On Glove Sector

- Backed by natural organic growth in larger markets like the United States and European Union, RHB Research Institute expects overall demand for gloves to grow 8 percent to 10 percent per annum over the next few years.

- Resilient demand, increased health awareness in developing countries, softening latex and nitrile prices and a stronger US dollar against ringgit were other favourable reasons cited by the research house.

- Financial results from three out of the four glove stocks under RHB Research’s coverage came in well within expectations with Supermax Corp the exception, negatively impacted by an operational blip in 4Q13.

Significance: Kossan Rubber Industries remains RHB Research’s top pick for the sector with its robust earnings outlook for the next two years, underpinned by healthy capacity expansion and balanced product mix. Top Glove and Hartalega Holdings round up the list of glove stocks.


Mah Sing To Develop RM2.5b High-End Residential Project

- Mah Sing Group has agreed to acquire a portion of prime land in Sultan Salahuddin Abdul Aziz Shah Golf Course (SSAASGC), measuring 85.4 acres (approximately 3.7 million square feet), for RM327.5 million, or RM88 per square foot.

- Mah Sing intends to develop landed and high-rise residences, including super link, linked semi-detached, semi-detached, bungalows, serviced apartments and some commercial components in a project with a potential gross development value (GDV) of RM2.5 billion.

- CIMB views the purchase positively as the land is nestled in a prime location within SSAASGC while the acquisitions cost makes up a fair 13 percent of GDV.

Significance: Following the success of its earlier sold projects in Shah Alam, covering residential, industrial and commercial developments, the proposed acquisition allows Mah Sing to further tap on the area’s growth potential.