Maybank IB Views

Banking: Neutral
Earnings growth cut

Neutral. We maintain our Neutral stance on the banking sector on the premise that valuations are fair for most of the stocks within our coverage, particularly amid a competitive operating environment and slower earnings growth projections. Top picks in the sector continue to be AMMB Holdings, BIMB Holdings and CIMB Holdings.

Technicals
The FBM KLCI rebounded 29.28-points and closed at 1,474.09 last Friday. The local market remained somewhat firm on low volume buying on blue chip stocks as the bourse played catch-up with global markets over the 3-day holiday break. The weaker support areas for the FBM KLCI are located in the 1,423 to 1,470-zone. The next resistance levels of 1,474 and 1,511 will see very heavy liquidation activities.

Trading Idea is a technical Take Profit call on GAMUDA.

Other Local News
AirAsia: EPF buys 10m more shares. The Employees Provident Fund (EPF) had bought 4.27m shares on Aug 25 and 5.72m shares the following day. With the acquisition, EPF increased its equity interest to 12.5%. (Source: Bursa Malaysia)

RHB: Withdraws MD application to Bank Negara. RHB Banking Group has withdrawn its application to Bank Negara Malaysia to seek the appointment of Renzo Viegas as MD of RHB Bank Bhd. The reason for the withdrawal is its current internal reorganization. (Source: The Edge Financial Weekly)

BRDB: To reward shareholders, divest BSC. Bandar Raya Developments Bhd (BDRB) is looking to pay a bumper dividend to its shareholders in a complex corporate exercise that may see it dispose its Bangsar Shopping Centre (BSC). (Source: The Edge Financial Weekly)

Plantation: Oil palm seeds to cost 30% more. The price of oil palm seeds, now at RM1.85 each, will be raised by 30% to RM2.35 starting January next year. The increase is due to the recent hike in labour wages and foreign worker levy, fertiliser cost, electricity tariff and packaging material cost. (Source: Business Times)