Maybank IB Views

SECTOR UPDATE
Oil & Gas: Overweight
East Coast Spotlight; WSC raised to Buy

5 companies, 2 states, 1 objective. We visited 5 oil & gas and chemical companies based in Terengganu and Pahang last week to track their respective development and progress. We covered Petronas Gas, Petronas Chemicals and Eastern Pacific Industrial Corp (EPIC) in Kerteh and Kemaman (both in Terengganu) and visited Wah Seong and KNM's operations in Gebeng (in Pahang). Wah Seong is now a Buy on improving prospects for its pipe coating operations.

Technicals
The FBM KLCI fell 0.27 points yesterday to close at 1,495.35. Its resistance areas of 1,495 and 1,529 will cap market gains, whilst the obvious support areas are located at 1,474 and 1,493.

Trading idea for today is a Buy call on MEDIAC.

Other Local News
SP Setia: More medium-cost apartments in Setia Alam. SP Setia Bhd plans to launch at least another 300 units of medium cost apartments in its Setia Alam township in the near future to benefit from the government's "My First Home Scheme". (Source: The Edge Financial Daily)

TM: Unit gets a further 10-year concession deal on Menara KL. Telekom Malaysia Bhd's (TM) subsidiary Menara Kuala Lumpur Sdn Bhd (MKLSB) has signed a 10-year concession agreement worth RM50m with the Government. (Source: Bursa Malaysia)

TDM: To build private specialist hospital in Kuantan. Terengganu Development Management (TDM) Bhd will build a RM120m private specialist hospital in Kuantan. The construction is expected to be completed by next year. (Source: The Edge Financial Daily)

Cocoaland: Buys Rawang land. Cocoaland Holdings Bhd is acquiring two pieces of industrial land in Rawang for RM7.85m from Riviera Properties Sdn Bhd. The lands are acquired for the construction of a factory and warehouse. (Source: Bursa Malaysia)

George Kent: To invest up to RM100m to expand ops. George Kent (M) Bhd plans to invest up to RM100m in the next three to four years to expand its meter and original equipment manufacturing (OEM) businesses. (Source: The Star)

APFT: Public subscription over subscribed. APFT Bhd's 15m shares allocated for public subscription has been oversubscribed by 12x. The company will be listed on the Main Market of Bursa Malaysia on March 18. (Source: The Star)

Benalec: Gets Melaka reclamation works. Benalec Holdings Bhd has entered into an agreement with Yayasan DMDI (DMDI) to undertake reclamation works at the coast of Kawasan Kota Laksamana in Bandar Melaka. (Source: Bursa Malaysia)

Property: Axis Global REIT IPO priced at RM1-RM1.05. The IPO of Malaysia's Axis Global Industrial REIT has set an indicative price range of RM1-RM1.05 a unit. The share base of about 2b units prices the IPO between RM2b-2.1b, will make it the second largest REIT in Malaysia after Sunway REIT's RM2.4b IPO last year. (Source: The Edge Financial Daily)

Plantation: Only 10 biodiesel plants operating. The government has issued 60 biodiesel manufacturing licences as at end-February 2011 but only less than one fifth has started production. This is due to the lack of demand for biodiesel exports and high palm oil prices in the 2H10. (Source: Business Times)