Maybank IB Views

ECONOMICS
Market & Economy
Embarking on the passage of transformation

A giant leap. PM Najib's Keynote Address at yesterday's Invest Malaysia conference sent a positive and affirmative message on the government's resolute to transform Malaysia into a high-income economy by 2020. The PM also took the opportunity to showcase his report card detailing the progress and achievements of the strategic policies and radical initiatives announced over the past two years. There is no change to our economic and Malaysian equities growth forecasts (YE KLCI: 1,710 pts). Positive news flows especially on the ETP implementation are potential market rerating catalysts, in our view.

Technicals
The FBM KLCI plunged by 18.08 points at 1,525.92 yesterday. Its resistance areas of 1,525 and 1,540 will cap market gains, whilst the weaker support areas are located at 1,500 and 1,522. Due to the DJIA’s much weaker tone last night, we will see the FBM KLCI in a further liquidation mode today. A recent secondary high of 1,565.53 (4 April 2011) had been seen and a major downward retracement phase has now emerged.

Trading Idea for today is a Take Profit call on AXIATA.

Other Local News
IRDA: MRT proposed for Iskandar Malaysia. A plan to build a 500km mass rapid transit (MRT) system has been proposed to improve the connectivity within Iskandar Malaysia, according to Iskandar Regional Development Authority (IRDA). The MRT project will be developed in five or six phases. The first phase is expected to be completed by 2020. The announcement will be made by the Prime Minister if the proposal is accepted. (Source: The Star)

CIMB: Datuk Zainal Abidin named chairman. CIMB Bank Bhd announced the appointment of Datuk Zainal Abidin Putih as chairman of the company, succeeding Tan Sri Haidar Mohamed Nor, who retired at the Bank’s Annual General Meeting. Zainal has been a director of CIMB Bank since July 2006 and is also the chairman of its audit committee. (Source: Business Times)

Xinhua: To make KL regional HQ. China's state media Xinhua News Agency plans to set up its Asean editorial hub in Malaysia this year and a formal announcement will be made in due course, said its Asia-Pacific president and editor-in-chief Ju Mengjun. Xinhua News Agency has seven regional hubs in the world with over 130 overseas bureaus, of which 27 are located in Asia Pacific. It has representative offices in most Asean countries at present. (Source: The Star)