RHBInvest Research

Banks:

• A focus for the banking sector this week would be on the upcoming MPC meeting on 11 Mar.
• We expect BNM to raise the SRR by 1%-pt during the meeting.
• We would not discount the possibility that macro-prudential lending measures could be introduced and we think this may involve raising the eligibility of credit cards and shortening the repayment period of HP financing.
• Overweight stance on the sector maintained.

Corporate Highlights

Fajarbaru:

• Lands RM150m LRT station jobs
• Maintain fair value of RM1.37 and Outperform call.

MAHB:

• AirAsia to build and own new Kuching LCCT?
• We are more inclined to view the move as nothing more than a pressure tactic against MAHB compel it to reduce the passenger service charge (PSC) of RM51 in KIA currently vis-à-vis RM25 in KLIA-LCCT.
• Fair value is RM7.67 based on “sum-of-parts”.