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DAILY

13 November 2009

MALAYSIA
CIMB Research Report

Daybreak

Terence Wong CFA +60(3) 20849689 – terence.wong@cimb.com

What’s on the table
Malayan Banking 1QFY10 above – Making a whole lot of cents
Index Chart Maybank’s 1QFY6/10 net profit jumped 54.1% yoy to RM881.8m, accounting for 28% of
our full-year forecast and 31% of consensus. The main source of the variance was a strong
FBMKLCI Index
1300 topline which benefited from robust growth of non-interest income and margin expansion.
1250
1200 However, the group recorded 4% yoy loan growth in Sep 09, slower than the 13% yoy
1150
1100 growth recorded three months ago. This was mainly due to a 1.4% slippage of overseas
1050
1000
loans. Net NPL ratio improved slightly to 1.6% in Sep 09 from 1.64% in Jun 09. We are
950
900
raising FY10-12 net earnings forecasts by 2-8% for lower NPL ratios and higher non-
850 interest income. This increases our target price from RM7.55 to RM7.70 (pegged to 5%
800
Nov-08 Feb-09 May-09 Aug-09 Nov-09 premium over the DDM value). Despite the positive earnings outlook, we remain
NEUTRAL on Maybank as we believe the positives are already in the price given its above-
Source: Bloomberg average CY10 P/E. We prefer Public Bank for a play on big-cap Malaysian banks.

Quick takes – Axiata update – A short Dialog

Quick takes – Media Prima update – Sweetening the NSTP deal

Quick takes – NSTP update – A sweeter deal and bumper dividends

News of the Day
– New fuel subsidy management system will be implemented in May-10
– DiGi.Com believes Internet division will act as a driver of growth in 2010-2011
– US initial jobless claims fell by 12,000 to 502,000 Nov-7 week, lowest level since Jan-3

MARKET INDICES KLCI STATISTICS
Close % Change Ytd (%Chg)
FBMKLCI 1,271.75 0.1 45.1 KLCI 52-week range 835-1280
FBM100 8,283.08 0.2 47.5 Total turnover (m units) 991.9
Shanghai 3,172.95 (0.1) 74.3 Total value (RM m) 1356.5
Dow 10,197.47 (0.9) 16.2 3-mth avg trading value (RM m) 1161.3
Nasdaq 2,149.02 (0.8) 36.3 Number of gainers 287
FTSE-100 5,276.50 0.2 19.0 Number of losers 379
Nikkei 225 9,804.49 (0.7) 10.7 Number of unchanged 244
Hang Seng 22,397.57 (1.0) 55.7 KLCI futures Nov 09 1268.5 (-0.55%)
FSSTI 2,726.24 (0.5) 54.8 KLCI futures Dec 09 1269.5 (-0.47%)

TOP ACTIVES ECONOMIC STATISTICS
RM % change Turnover (m) Close % Chg
HUBLINE-WA 0.130 18.2 48.5 US$/Euro 1.4850 (0.91)
SINARIA 0.510 (8.9) 42.1 RM/US$ (Spot) 3.3810 (0.16)
HUBLINE 0.245 6.5 25.9 RM/US$ (12-mth NDF) 3.3930 0.25
XDL 0.580 (7.9) 25.4 OPR (%) 2.00 0.00
TALAM 0.110 4.8 24.7 BLR (%, Maybank) 5.55 0.00
SCOMI 0.530 (8.6) 20.3 GOLD ( US$/oz) 1,103.80 (1.22)
AFFIN-WC 0.155 14.8 18.0 WTI crude oil US spot (US$/barrel) 76.94 (2.95)
SERNKOU 0.365 4.3 17.0 CPO spot price (RM/tonne) 2,180 1.02

Please read carefully the important disclosures at the end of this publication.
Global economic news
US Treasury Secretary Timothy Geithner said Asia-Pacific nations need “market-
oriented” currencies that are in line with their economic fundamentals to encourage new
sources of growth. “Market-oriented exchange rates in line with economic fundamentals
will be essential in assuring the resource and sectoral shifts to match and foster the new
patterns of demand,” said Geithner. (Bloomberg)

■ ■ ■
The US budget deficit widened in October from a year earlier, reaching a record for that
month, as rising unemployment cut revenue at the start of the first full fiscal year under
President Barack Obama.
• The excess of spending over revenue widened to US$176.4bn last month, compared
with a deficit of US$155.5bn in the same month a year earlier. It was a record 13th
consecutive shortfall and the fifth-largest monthly gap on record.
• Economists surveyed forecast a deficit of US$165bn in October. The non-partisan
Congressional Budget Office predicted a shortfall of US$175bn for the month. During the
fiscal year that ended Sept. 30, the Treasury reported a record deficit of US$1.4tr.
(Bloomberg)
■ ■ ■
US initial jobless claims fell by 12,000 to 502,000 in the November 7 week. This is the
lowest level since the Jan. 3 week, when 488,000 initial claims were filed. A consensus
estimate anticipated 510,000 new claims. The 4-week moving average of initial claims was
519,750, down 4,500 from the previous week's revised average of 524,250. Continuing
claims for jobless benefits fell by 139,000 to 5.63m in the week ended Oct. 31. (CNN
Money)

■ ■ ■
US foreclosure filings were down 3% in October, the third consecutive month-over-month
dip, according to RealtyTrac, the online seller of foreclosed homes. To be sure, foreclosure
rates are still elevated from a year ago: They're up 18% compared with October 2008. But
the month-over-month decrease followed a 4% drop in filings during September and a 1%
fall in August. (CNN Money)

■ ■ ■
US mortgage applications to purchase homes plunged last week to the lowest level in
almost nine years as Americans waited for the outcome of deliberations to extend a
government tax credit. The Mortgage Bankers Association’s index of applications to buy a
house dropped 12% in the week ended Nov. 6 to 220.9, the lowest level since Dec 2000.
The group’s refinancing gauge rose 11% as interest rates decreased, pushing the overall
index up 3.2%. (Bloomberg)

■ ■ ■
The Federal Reserve released a new rule to prohibit banks from automatically enrolling
customers in overdraft protection programs, which charge fees when consumers spend
more than they have. "The final overdraft rules represent an important step forward in
consumer protection," Fed Chairman Ben Bernanke said. "Both new and existing account
holders will be able to make informed decisions about whether to sign up for an overdraft
service." Currently, more than 75% of banks automatically sign customers up for overdraft
programs. (CNN Money)

■ ■ ■
Philadelphia Federal Reserve Bank President Charles Plosser said he sees no near-
term inflation threat, but warned the large volume of excess reserves created by the Fed as
a result of its quantitative easing policy could become inflationary if those reserves start
flowing rapidly into the economy. In that event, Plosser said the Fed would need to act
"pretty quickly" to head off an inflation problem, either by raising interest rates or by
draining reserves. (Xinhua)

■ ■ ■
US Treasury Secretary Timothy Geithner said that inflation rates are still easing in the
world's major economies and so fiscal stimulus policies are likely to remain in place for a
while. Geithner said inflation remains low in major economies and is still "still moderating.
(Xinhua)

[ 2 ]
■ ■ ■
Chinese Premier Wen Jiabao said the world faces a gradual and uneven recovery from
the worst financial crisis since the Great Depression. “The global economy is starting to
recover but a total recovery will be a slow and bumpy process.”
• Risks include trade protectionism, the sustainability of fiscal stimulus measures, and
“price uncertainties,” China’s central bank said.
• China will maintain a moderately loose monetary policy and a “proactive” fiscal stance
and continue to fine-tune its 4tr yuan (US$586bn) stimulus plan, Wen said. He also
reiterated that policy makers need to manage inflation expectations. (Bloomberg)
■ ■ ■
Japan’s financial surveillance agency said it is investigating funds that bet on art and
racehorses as regulators broaden their scope to protect individual as well as institutional
investors. The Securities and Exchange Surveillance Commission is probing the activities
of nine funds and brokers that sell so- called low-liquidity products to individuals.
(Bloomberg)

■ ■ ■
Japan’s producer prices fell for a tenth month in October, underscoring the risk that
deflation may undermine the economic recovery. The costs companies pay for energy and
unfinished goods tumbled 6.7% yoy in October after sliding a revised 8% in September.
(Bloomberg)

■ ■ ■
South Korea’s central bank kept its benchmark interest rate at a record low of 2% for a
ninth month. Bank of Korea said it “will maintain an accommodative policy stance for the
time being with an emphasis on sustaining the recovery of economic activity.” (Bloomberg)

■ ■ ■
India’s industrial production grew more than economists forecast in September. Output
at factories, utilities and mines rose 9.1% yoy after gaining a revised 10.96% in August.
The latest increase was more than the median 7% forecast. (Bloomberg)

■ ■ ■
Thailand’s consumer confidence fell for the first time in five months, dropping to 68 in
October from 68.4 the previous month, the University of the Thai Chamber of Commerce
said. “Consumers still feel that the economic recovery isn’t sustained,” Thanavath
Phonvichai, an economist at the university, said. “Rising oil prices and the court case are
among key negative factors. If the situation doesn’t improve, consumer confidence may fall
further.” (Bloomberg)

■ ■ ■
Indonesia’s economy is expected to expand 4.3% this year and exports may decline less
than previously expected, Trade Minister Mari Pangestu said. (Bloomberg)

■ ■ ■
The Asia-Pacific Economic Cooperation's (Apec) economies ministers painted an
upbeat view on the world economy but in the same breath cautioned of its lingering
frailness in its recovery. In a joint statement, the 21st Apec Ministerial Meeting (AMM) said
the global economic situation has eased considerably but the recovery still remained
fragile.
• The Apec ministers said that a pick-up in trade and investment was contributing to the
recent rebound in global economic activity, but evidence of an increasing use of trade
remedies indicated that risks relating to protectionism and recovery remained.
• The AMM said the world's growth profile over the next few quarters was also likely to be
uneven. "Unemployment remains unacceptably high in many of Apec economies," the
statement said.
• The International Monetary Fund (IMF) has estimated that the world gross domestic
product (GDP) will rise by nearly 3% in 2010, and that all Apec economies will shift to
positive GDP growth in 2010. (Bernama)
■ ■ ■
Indonesia expects to achieve economic growth of more than 7% by 2014, said
Indonesian President Susilo Bambang Yudhoyono. He said economic growth of 4.3% is
expected in 2009, which is much lower than before the economic crisis. To achieve the

[ 3 ]
growth, a five-year action plan or blueprint had been drafted. The action plan is based on
strengthening infrastructure such as roads, ports and power plants throughout Indonesia,
Susilo said. (Bernama)

■ ■ ■
Australia’s resources hiring boom underscores central bank Governor Glenn Stevens’s
concern that the emergence of a “two-speed” economy may force policy makers to impose
interest-rate gains that hurt slower-growing regions. Unemployment fell last month in
Western Australia and Queensland, states rich in iron ore, coal and natural gas, while the
jobless rate in New South Wales, the most populous state, climbed to 6.1%from 5.5%.
(Bloomberg)

■ ■ ■
The European Central Bank said professional forecasters have revised up their
expectations for economic growth in the euro region. Forecasters surveyed by the central
bank expect growth of 1%in 2010, up from the 0.3% predicted three months ago. The
economy will shrink 3.9% this year, less than the 4.5% contraction forecast in August.
(Bloomberg)

■ ■ ■
European industrial output rose for a fifth month in September as the global recovery
bolstered orders for goods ranging from steel to machinery. Production in the economy of
the 16 nations using the euro increased 0.3% from August, when it gained 1.2%.
Economists forecast an increase of 0.5%. From a year earlier, output fell 12.9%.
(Bloomberg)

■ ■ ■
Asia-Pacific finance ministers praised China’s part in reviving global economic growth
and dodged a discussion on whether the yuan’s weakness is damaging its neighbours’
export. China has “played a major role in helping contribute to recovery” US Treasury
Secretary Timothy Geithner said after meeting with his counterparts in Singapore
yesterday. (Financial Daily)

■ ■ ■
South Korea's central bank maintains its benchmark interest rate at a record low for a
ninth month, seeking to strengthen the economy's recovery before increasing the
borrowing costs. Governor Lee Seong Tae left the seven-day repurchase rate at 2% in
Seoul and the Bank of Korea said it "will maintain an accomodative policy stance for the
time being with an emphasis on sustaining the recovery of the economic activity".
(Financial Daily)

■ ■ ■

Malaysian economic news
About 65.9% or 54 of the projects under the East Coast Economic Region (ECER) have
taken off the ground, said Deputy Minister in the Prime Minister's Department Datuk S.K
Devamany. He said until Oct 1, the government had disbursed RM480m of the RM1.5bn
allocation to ECER Development Council (ECERDC), which had been entrusted with the
development of 82 projects. Devamany said they included high-impact projects such as the
Kuala Krai (Kelantan)-Simpang Pelangai (Pahang) road widening project, the Kertih
Polymer Industry Cluster and several agropolitan farms.
• The Kertih Polymer Industry Cluster, which will be the first integrated plastic park in the
country, is expected to attract RM2bn in investment and create 8,000 jobs by 2020, he
said. (Bernama)
■ ■ ■
The new fuel subsidy management system will be implemented in May-10, Deputy
Finance Minister Datuk Chor Chee Heung said. He said the system's mechanism would be
announced after a study on the subsidy distribution and target groups had been identified.
• In respect of the fuel subsidy borne by the government until September, Chor said it
amounted RM3.54bn.
• "The fuel subsidy for 2010 will reach RM10bn if the present system is retained," he
added. (Bernama)
■ ■ ■

[ 4 ]
The government has taken over and completed 12 of 148 abandoned housing projects
nationwide since 1990, the Dewan Rakyat was told. Deputy Housing and Local
Government Minister Datuk Seri Lajim Ukin said of the total, 49 projects were being
restored, while 87 others still abandoned.
• "We are in the midst of identifying and save more restorable projects. Yet, the RM200m
allocated to the ministry is definitely insufficient to restore all 87 abandoned projects," he
said.
• Lajim said among the main criteria to be considered for the government to take over the
project was that it should be almost 90 to 95% completed or had been abandoned for
over 10 years. (Bernama)
■ ■ ■
The Higher Education Ministry will focus more on intellectual development, rather than
infrastructure development, in institutions of higher learning in the 10th Malaysia Plan
(10MP). Minister Datuk Seri Mohamed Khaled Nordin said the move was in line with the
government's aspiration to make Malaysia not only as a higher education hub, but also a
major innovation centre in the region. (Bernama)

■ ■ ■
Perlis could become the owner of a man-made island should it receive the approval of
the government to build the island off the shores of the state, between Kuala Sanglang and
Kuala Sungai Padang. The man-made island, touted as a potential driver of economy in
the region, is expected to be built using a Korean technology.
• The project, worth more than RM20bn, would become a new catalyst for economic
growth as its location was not too far from Thailand. The island is also expected to be
developed as a container port of international standing. (Bernama)
■ ■ ■
Malaysia needs to compete with countries with high technological capabilities to secure
future growth and escape from a middle-income trap, says the Raja Muda of Perak, Raja
Dr Nazrin Shah. He said this could be done only through innovation and technological
breakthroughs to compete with countries like South Korea, Japan and even China.
• "The government is all set to provide the necessary assistance. The responsibility rests
with business entities to forge their paths to becoming more competitive in the global
marketplace," he said.
• "Today, Malaysia finds itself caught in a middle-income trap, squeezed between low-cost
labour-intensive economies and technology-driven knowledge-intensive economies.
Malaysia is fast losing its comparative advantage in the export of labour-intensive
manufactured products and simply importing cheaper labour to feed this sector is doing
nothing to propel the economy up the value chain," he said. (Bernama)
■ ■ ■
Trade and investment ties between Malaysia and South Korea have room for
expansion, says Deputy Foreign Minister Datuk Lee Chee Leong. Over the last 10 years,
trade between the two countries has expanded by an average of over 10% annually,
exceeding RM50bn in 2008. Based on the current growth trend, by 2015, trade between
Malaysia and South Korea is poised to balloon to RM100bn.
• “The implementation of the Association of South East Asia Nations (Asean)-South Korea
Free Trade Area, which will come into effect on January 1 2010, is expected to
significantly help deepen the economic linkages”, Lee said. (NST)
■ ■ ■
Malaysia may raise its economic growth forecast for 2010 as it expects more
investments from the private sector, Second Finance Minister Datuk Seri Ahmad Husni
Hanadziah says. Currently, the government expects gross domestic product (GDP) to
expand by 2 to 3% in 2010 after contracting 3% in 2009.
• The optimism stems from higher private sector investments. One example was a
government-linked company that wants to develop a massive property project in Kuala
Lumpur, Husni said. (NST)
■ ■ ■
The government is expected to spend RM 10bn on the oil subsidy next year, said Deputy
Finance Minister Datuk Chor Chee Heung. He said the estimate of oil subsidy is based on
government’s current oil subsidy mechanism. “I can’t tell you the mechanism as
government is still working out the details. It will be implemented in May 2010.” Chor said
government could not give a 100% guarantee that only the deserving group would receive
the subsidy but it would work to plug weakness. (Financial Daily)

[ 5 ]
■ ■ ■
Malaysia appears to face a setback in its effort to have a free trade area (FTA)
agreement with the US as the world's biggest economy is keen on regional pacts instead.
US Trade Representative Ron Kirk told Malaysia's Trade Minister Datuk Mustapa
Mohamed that the US favours the Trans-Pacific Partnership (TPP), an existing regional
trade deal involving New Zealand, Singapore, Brunei and Chile. The TPP could be
expanded and the US, Peru, Australia and Vietnam have indicated interest to join the
group. (BT)

■ ■ ■

Political news
MCA president Datuk Seri Ong Tee Keat should be held responsible for the tussle in the
party for the No. 2 post, former party secretary-general Datuk Seri Ong Ka Chuan said.
Tee Keat's failure to let the central committee know that he and Datuk Seri Dr Chua Soi
Lek had been working on a unity plan had resulted in the committee's poorly informed
decision to elect Datuk Seri Liow Tiong Lai as the new deputy president. Ka Chuan said
Tee Keat deliberately hid details of the plan from the committee. Ka Chuan said the unity
plan seemed good outwardly but he believed there was "something behind it". (NST)

■ ■ ■
The High Court will decide on Monday whether a fresh election will be held for the Kota
Siputeh state seat in Kedah after assemblyman Datuk Abu Hassan Sarif was absent from
two assembly meetings this year. Justice Datuk Alizatul Khair Osman Khairuddin set the
date after hearing a length submission by counsel Sulaiman Abdullah for Kedah Speaker
Abdul Isa Ismail who is seeking judicial review of the Election Commission's decision to
retain Abu Hassan as the assemblyman. (Star)

■ ■ ■

Corporate news
Heavy rains threaten to reduce November's palm oil output in Malaysia by a quarter as
rising moisture levels sap yields and possible floods make tough the transport of the
vegetable oil to refineries and ports.
• Estate owners and traders said that production could fall as low as 1.48m tonnes in
November from a month ago as monsoon rains approach southern Malaysia's key palm
oil producing state of Johor.
• "Production was unusually high last month and it is set to fall very steeply because rains
will increase the moisture content of the palm fruits," said a plantation owner in Johor.
"And judging by previous years, floods will definitely appear."
• Sabah, which accounts for more than a quarter of production, has also experienced
heavy rains, and planters say in some areas yields have fallen by 30 to 40% and
plantation roads were submerged. (Reuters)
This will be positive for CPO price as palm oil supplies will fall short of market expectation.
We believe market is currently expecting a good crop in November due to seasonal factor.

■ ■ ■
The Sabah 2010 Budget will place emphasis on continuing efforts to improve the well-
being of the people. Sabah Chief Minister Datuk Seri Musa Aman said that efforts would be
made to maintain the momentum in the development agenda, including improving
infrastructure and intensifying the programme to eradicate poverty. Musa said the
measures to be taken under the budget are expected to make the state more attractive and
conducive to local and foreign investors. (Bernama)

■ ■ ■
Banks may have decided to raise home financing rates, but prospective homebuyers can
still snap up selected properties at cheap rates at least until early next year. "Most banks
have revised their rates on average by 50 basis points to BLR minus 1.8%, but they don't
want to make a drastic revision and incur the repercussions. So the end-financing for
selected projects is still using the old rates of BLR -2.4% to pull in more customers, and
clear old stock," Mortgage Broker Sdn Bhd sales director Adrian Un said. (Financial Daily)

■ ■ ■

[ 6 ]
National Water Servies Commission or SPAN is set to give its authorisation to four
private concessionaires to continue operating and see out their concession periods. SPAN
CEO Datuk Teo Yen Hua said an audit by the commission found the tariff and service
charges for distribution and/or treatment of water were generally fair at Southern Water
Corporations, Equiventures, Air Utara Indah and Metropolitan Utilities Corporation and
these utilities will be authorised by SPAN under the Water Services Industry Act 2006 to
see out their concession periods. The Commission however would like to seek lower
charges for Taliworks Corp's treatment and distribution concession in Langkawi.
(Malaysian Reserve)

■ ■ ■
DiGi.Com believes its Internet division will act as a driver of growth in 2010 and 2011,
backed by its expansion plan, said its CEO Johan Dennelind. He said the Internet division
had to-date contributed at least RM40m to DiGi's run rate, based on the amount of sales
from its services. Dennelind said Digi would invest RM300-400m annually in capital
expenditure for the 2009-2011 period to grow its 3G network and "ensure enough capacity
to support data".
• The company targets 6-7m Internet users from both large-screen PCs and laptops using
broadband, and small screen handphones using 3G by year-end. He added that the
company aimed to increase its 3G network reach to 50% nationwide by next year and
was working on getting its 3G penetration rate to the level of its EDGE network by 2012.
(Financial Daily)
■ ■ ■
Green Packet will need up to RM500m in capital expenditure in the next 12-18 months to
increase its 4G Wimax coverage nationwide to 65%. This does not include a RM155m
capex it plans to spend first over the next three quarters to raise the high-speed broadband
service coverage to 45%, Green Packet MD C.C. Puan said it had so far invested RM337m
to roll out the 4G service. The company's 4G service, known as P1 and run by subsidiary
Packet One Networks (Malaysia) Sdn Bhd, now covers 25% of the Peninsular. (BT)

■ ■ ■
SP Setia has expanded its Penang landbank with the purchase of two plots of land on the
island which are being earmarked for residential development. SP Setia property division
(north) general manager S. Rajoo said two parcels of land - one inn Sg Ara and the other
in the affluent Jesselton neighbourhood - have been acquired for a total of RM87m. (BT)

■ ■ ■
Eastern & Oriental's rights issue of ICSLS has achieved an oversubscription rate of 2.9x
above the minimum subscription level. The company said in a statement that RM236m was
raised from the exercise. The ICSLS is expected to be listed on Bursa Malaysia on Nov 20.
(Starbiz)

■ ■ ■
Guoco Group has methodically built up its stake in Bank of East Asia (BEA) in a steady
and cost-conscious manner that bankers say is typical of the conglomerate's investment
approach. Guoco has snapped up BEA stock throughout the year, adding a chunk of the
bank after its share price fell in the wake of last year's financial crisis. It disclosed last week
that it had subsequently raised its stake in the lender above 8%, entrenching its position as
the second-largest shareholder in the bank.
• Guoco's announcement has prompted speculation of a possible bidding war over control
for BEA that has powered a surge in its share price. The lender has advanced 18.6% so
far this week and completed its largest one-day gain in 11 years on Wednesday.
• "By reputation, Guoco is a very savvy, very shrewd investor," said a banker familiar with
the company. "And they are still sitting on a big pot of cash, so they have the opportunity
to make some deals."
• A Guoco spokesman reiterated that BEA was one of the group's strategic investments,
but declined to say whether the conglomerate would further increase its holding in Hong
Kong's biggest locally owned bank. (SCMP)
■ ■ ■
The Transport Ministry has agreed to provide Malacca International Airport with several
incentives to help spur its usage by air carriers, including considering granting AirAsia
rights to six destinations in Indonesia. Chief Minister Datuk Seri Mohd Ali Rustam said the
state hoped to see several low-cost carriers establish operations at the airport which would
officially be opened by the Prime Minister on Jan 15.
• This includes a RM25 incentive for each incoming passenger for the first 12 months for

[ 7 ]
new airlines flying to new routes or increasing flight frequency.
• Another benefit is the RM10-15 incentive for each incoming passenger after the period,
depending on the performances of the air carriers.
• Also included is the deferment of landing charges for three years and six-month rent free
office space for those setting up operations at the airport. (The Star)
■ ■ ■
Galaxy Entertainment will have financing for its Mega Resort project in Macau "locked up"
this year, said CFO Robert Drake. The company will explore "as many options as we can"
in its efforts to secure financing for the HK$14.1bn RM6.15bn) casino resort, Drake said.
He declined to say if the funds will be raised through loans, or sales of shares or bonds.
(Bloomberg, Financial Daily)

■ ■ ■
Salcon has won a contract worth RM35.8m from Vintage Heights Sdn Bhd to undertake a
vacuum sewerage system project. The project at Pantai Sepang Putra in Selangor will be
constructed in two phases and is expected to be completed in 39 weeks for phase one and
78 weeks for phase two, Salcon.
• Work will start from the date for site possession on Nov 17. When completed, the
vacuum sewerage system will service approximately 2,000 existing households in Pantai
Sepang Putra," says CEO How See Hock. Vacuum sewerage system suitable for use in
places where there are high water table and poor soil conditions such as at Pantai
Sepang Putra, says Salcon. (Bernama)
■ ■ ■
Three-A Resources announced yesterday it has completed the private placement of
61.6m new shares at RM0.75/share issue price and the new shares will be listed today, 12
Nov. (BMSB)

■ ■ ■

[ 8 ]
BMSB: Changes in shareholdings
Type of No of Ave Price
12-Nov-09 Date transaction securities Company (RM)
EPF 05/11 Disposed 1,000,000 KLCC PROPERTY
EPF 19/10-21/10 Disposed 867,200 MAS BHD
Kumpulan Wang Persaraan 03/11 Disposed 200,000 PLUS EXPRESSWAYS
Koperasi Permodalan Felda Berhad 06/11-09/11 Disposed 1,501,200 MY E.G. SERVICES
Harris Associates L.P. 09/11-10/11 Disposed 4,593,900 MEDIA PRIMA
Newton Investment Management Limited 09/11 Disposed 1,000 BURSA MALAYSIA
HSBC (Malaysia) Trustee Berhad 04/11-05/11 Disposed 152,400 GAMUDA BERHAD
Datuk Mohd Saufi Bin Abdullah 04/11 Disposed 100,000 KURNIA ASIA
Dato' Low Chin Meng 11/11 Disposed 7,380,000 LCL CORPORATION 0.63
Wei Chuan Beng 06/11 Disposed 600,000 REDTONE
Chia Kok Chin 11/11 Disposed 2,200,000 I-POWER 0.15
EPF 04/11-05/11 Acquired 1,460,100 MALAYAN BANKING
EPF 02/11-05/11 Acquired 2,849,400 CIMB GROUP
EPF 29/10 Acquired 150,000 CIMB GROUP
EPF 29/10-05/11 Acquired 3,967,800 SIME DARBY
EPF 27/10-30/10 Acquired 4,054,400 PLUS EXPRESSWAYS
EPF 04/11-05/11 Acquired 1,367,000 ALLIANCE FINANCIAL
EPF 04/11-05/11 Acquired 4,700,900 IOI CORPORATION
EPF 04/11-05/11 Acquired 2,067,900 YTL POWER
EPF 04/11 Acquired 505,000 GENTING PLANTATIONS
EPF 06/11-09/11 Acquired 746,200 IGB CORPORATION
EPF 04/11-05/11 Acquired 981,500 MALAYSIA AIRPORTS
EPF 02/11-05/11 Acquired 115,900 YTL CORPORATION
EPF 02/11-03/11 Acquired 79,300 MAS BHD
EPF 04/11 Acquired 27,000 EON CAPITAL
Amanah Saham Malaysia 06/11-09/11 Acquired 145,000 MNRB
Aberdeen Asset Management PLC 06/11 Acquired 140,300 AEON CO
Aberdeen Asset Management PLC 09/11 Acquired 26,200 POS MALAYSIA
Cepatwawasan 12/11 Share Buyback 610,000 CEPATWAWASAN 1.03
Titan Chemicals 12/11 Share Buyback 139,000 TITAN CHEMICALS 1.19
I-Power 12/11 Share Buyback 300,000 I-POWER 0.14
Dialog 12/11 Share Buyback 300,000 DIALOG GROUP 1.31

Source: BMSB

[ 9 ]
BMSB: ESOS & others…
13-Nov-09 No Of New Shares Date of Listing Nature of transaction
BINA PURI 115,900 13-Nov-09 Exercise of ESOS
ASIA FILE 101,050 13-Nov-09 Exercise of ESOS
REDTONE INTERNATIONAL 248,200 13-Nov-09 Exercise of ESOS
WCT BERHAD 100,244 13-Nov-09 Conversion of ICPS-12
YTL POWER 206,300 13-Nov-09 Exercise of Warrants-10
YTL POWER 400,188 13-Nov-09 Exercise of Warrants-18
KENCANA 125,000 13-Nov-09 Exercise of ESOS
YTL LAND 1,378,438 13-Nov-09 Conversion of ICPS-11
M3NERGY 180,000 13-Nov-09 Exercise of ESOS
FORMOSA 983,000 16-Nov-09 Exercise of ESOS
DNP HOLDINGS 104,500 16-Nov-09 Exercise of ESOS
Source: BMSB

BMSB: Off-market transactions…
12-Nov-09 Vol Val (RM) Ave Price
AEONCR 923,800 3,695,200 4.00
ALAM 6,693,500 12,433,780 1.86
CBSTECH 501,500 270,810 0.54
CIHLDG 750,000 1,312,500 1.75
DIALOG 1,000,000 1,330,000 1.33
E&O 5,300,000 5,830,000 1.10
EVERGRN 600,000 906,000 1.51
HAIO 462,700 3,683,092 7.96
IBRACO 4,600,000 4,600,000 1.00
IOICORP 1,500,000 8,250,000 5.50
JAKS 1,652,100 1,329,941 0.81
KINSTEL 2,260,900 2,102,637 0.93
KOSSAN 1,004,600 5,304,288 5.28
KPJ 662,400 3,179,520 4.80
KPS 551,700 899,271 1.63
KURASIA 5,000,000 3,750,000 0.75
LIONIND 2,740,800 3,754,896 1.37
LUXCHEM 2,400,000 2,472,000 1.03
MANULFE 500,000 1,210,000 2.42
MEDAINC 1,500,000 165,000 0.11
NIHSIN 9,285,400 2,042,788 0.22
PARKSON 4,500,000 22,275,000 4.95
PBBANK 700,000 7,679,000 10.97
RAMUNIA 751,100 316,924 0.42
SARAWAK 3,000,000 7,890,000 2.63
SUPPORT 1,588,000 1,429,200 0.90
WCT-PA 1,466,666 711,333 0.48
Notes: CN- Crossing deal on board lots
MN- Married deal on board lots
MO- Married deal on odd lots
Source: BMSB

[ 10 ]
BMSB: Entitlements & trading rights…
13-Nov-09 Ann Date Entitlement Ex-Date Lodgement
IOI CORPORATION 23-Jul-09 1 Right @ RM2.90 : 15 24-Nov-09 26-Nov-09
Source: BMSB

BMSB: Dividends…
Company Particulars Gross DPS ( RM Sen) Ann Date Ex-Date Lodgement Date Payment
NSTP Special -TE 40.00 12-Nov-09 24-Nov-09 26-Nov-09 7-Dec-09
HARTALEGA 1st Interim -single-tier 5.00 10-Nov-09 24-Nov-09 26-Nov-09 24-Dec-09
ASIA FILE Final 15.00 3-Sep-09 26-Nov-09 1-Dec-09 28-Dec-09
LATEXX PARTNERS 2nd Interm- TE 1.00 2-Nov-09 30-Nov-09 2-Dec-09 16-Dec-09
GUINNESS Final- TE 31.00 3-Nov-09 1-Dec-09 3-Dec-09 22-Dec-09
SIME DARBY Final -single-tier . 15.30 27-Aug-09 2-Dec-09 4-Dec-09 15-Dec-09
YTL POWER Final -single-tier . 3.75 15-Oct-09 4-Dec-09 8-Dec-09 24-Dec-09
DIALOG GROUP Final 0.02 23-Oct-09 7-Dec-09 9-Dec-09 9-Dec-09
DIALOG GROUP 1 treasury share : 50 - 23-Oct-09 7-Dec-09 9-Dec-09 9-Dec-09
HUNZA PROPERTIES Final -single-tier . 0.06 20-Oct-09 11-Jan-10 13-Jan-10 28-Jan-10
Source: BMSB, TE : Tax Exempt

[ 11 ]
BMSB: Proposed cash calls & trading of rights…
13-Nov-09 Ann Date Proposed
INIX TECHNOLOGIES 4-Jan-08 Private Placement
MEXTER TECHNOLOGY 8-Aug-08 Private Placement, Special Issue
HUNZA PROPERTIES 21-Oct-09 3 Right + 1 Free Warrant : 10
PELIKAN 21-Oct-09 1 Right @ RM1.10 : 2
MAH SING 28-Oct-09 Bonus Issue 1 : 5 , Private Placement
KENCANA 11-Nov-09 Bonus Issue 3 : 10, 2 Right @ RM0.50 : 5
Source: BMSB

BMSB: Cash call
13-Nov-09 Ann Date Cash Call Approved Aborted Extended
KUMPULAN JETSON 25-May-05 Private Placement 19-Aug-09
FOTRONICS 22-Sep-06 Special Issue SC 17-Oct-06 17-Oct-09
VTI VINTAGE 29-Jun-07 Special Issue 27-Aug-09
CBS TECHNOLOGY 30-Aug-07 Special Issue SC 1-Nov-07 31-May-09
FREIGHT 11-Sep-07 Private Placement SC 12-Oct-07 12-Oct-09
ALAM MARITIM 24-May-07 Private Placement
TOYO INK 3-Mar-08 Private Placement SC 19-Mar-09 23-Sep-09
MALAYSIA STEEL 7-Mar-08 Private Placement SC 6-Sep-09
DREAMGATE 13-Nov-08 Private Placement @ RM0.18 SC 16-Apr-09 20-Oct-09
PERISAI PETROLEUM 16-Jun-09 Private Placement SC 22-Jun-09
KENCANA 22-Jun-09 Private Placement SC 2-Jul-09
UNISEM 17-Sep-09 Private Placement @ RM1.45 BM 29-Sep-09
Source: BMSB

[ 12 ]
Corporate actions
November 2009

SUN MON TUE WED THU FRI SAT
1 2 3 4 5 6 7
Latexx 3Q, Unisem CI Holdings 1Q External trade Lingui 1Q, Star External reserves,
3Q Publications 3Q AMMB 2Q

8 9 10 11 12 13 14
F&N 4Q, Metrod IPI, Hartalega 2Q Mudajaya 3Q, Malayan Banking
3Q, EON Capital Tasek 3Q, Hong 1Q
3Q Leong Bank 1Q,
Xingquan 1Q
15 16 17 18 19 20 21
Ann Joo 3Q MRCB 3Q, MPI 1Q,
Manufacturing Lafarge 3Q, BAT External reserves,
JobStreet 3Q, sales, CPI, WCT 3Q, Wah Seong 3Q PLUS 3Q, AirAsia
Dialog 1Q 3Q, Tan Chong 3Q, 3Q, TM 3Q, Kossan
Petra Perdana 3Q 3Q, Wellcall 4Q
22 23 24 25 26 27 28
MISC 2Q, UM Land MPC, IJM 2Q, Money supply, E&O 2Q
3Q, Petronas Maybulk 3Q, JTI 3Q09 GDP, MCIL
Dagangan 2Q 3Q, QSR 3Q, Alam 2Q, MAS 3Q,
Maritim 3Q Pelikan 3Q, Axiata
3Q, Uchi 2Q
29 30
PPI, Eksons 2Q

Source: Company, BNM, DOS, CIMB estimates

December 2009

SUN MON TUE WED THU FRI SAT
1 2 3 4 5
External trade

6 7 8 9 10 11 12
External reserves IPI

13 14 15 16 17 18 19
CPI Manufacturing
sales

20 21 22 23 24 25 26
External reserves

27 28 29 30 31
Money supply PPI

Source: Company, BNM, DOS, CIMB estimates

[ 13 ]
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[ 14 ]
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RECOMMENDATION FRAMEWORK #1*

STOCK RECOMMENDATIONS SECTOR RECOMMENDATIONS
OUTPERFORM: The stock's total return is expected to exceed a relevant OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is
benchmark's total return by 5% or more over the next 12 months. expected to outperform the relevant primary market index over the next 12
months.
NEUTRAL: The stock's total return is expected to be within +/-5% of a relevant NEUTRAL: The industry, as defined by the analyst's coverage universe, is
benchmark's total return. expected to perform in line with the relevant primary market index over the next
12 months.
UNDERPERFORM: The stock's total return is expected to be below a relevant UNDERWEIGHT: The industry, as defined by the analyst's coverage universe,
benchmark's total return by 5% or more over the next 12 months. is expected to underperform the relevant primary market index over the next 12
months.
TRADING BUY: The stock's total return is expected to exceed a relevant TRADING BUY: The industry, as defined by the analyst's coverage universe, is
benchmark's total return by 5% or more over the next 3 months. expected to outperform the relevant primary market index over the next 3
months.
TRADING SELL: The stock's total return is expected to be below a relevant TRADING SELL: The industry, as defined by the analyst's coverage universe,
benchmark's total return by 5% or more over the next 3 months. is expected to underperform the relevant primary market index over the next 3
months.

* This framework only applies to stocks listed on the Singapore Stock Exchange, Bursa Malaysia, Stock Exchange of Thailand and Jakarta Stock Exchange. Occasionally, it is permitted for the total expected returns to be
temporarily outside the prescribed ranges due to extreme market volatility or other justifiable company or industry-specific reasons.

[ 15 ]
CIMB-GK Research Pte Ltd (Co. Reg. No. 198701620M)

RECOMMENDATION FRAMEWORK #2 **

STOCK RECOMMENDATIONS SECTOR RECOMMENDATIONS
OUTPERFORM: Expected positive total returns of 15% or more over the next OVERWEIGHT: The industry, as defined by the analyst's coverage universe,
12 months. has a high number of stocks that are expected to have total returns of +15% or
better over the next 12 months.
NEUTRAL: Expected total returns of between -15% and +15% over the next NEUTRAL: The industry, as defined by the analyst's coverage universe, has
12 months. either (i) an equal number of stocks that are expected to have total returns of
+15% (or better) or -15% (or worse), or (ii) stocks that are predominantly
expected to have total returns that will range from +15% to -15%; both over the
next 12 months.
UNDERPERFORM: Expected negative total returns of 15% or more over the UNDERWEIGHT: The industry, as defined by the analyst's coverage universe,
next 12 months. has a high number of stocks that are expected to have total returns of -15% or
worse over the next 12 months.
TRADING BUY: Expected positive total returns of 15% or more over the next 3 TRADING BUY: The industry, as defined by the analyst's coverage universe,
months. has a high number of stocks that are expected to have total returns of +15% or
better over the next 3 months.
TRADING SELL: Expected negative total returns of 15% or more over the next TRADING SELL: The industry, as defined by the analyst's coverage universe,
3 months. has a high number of stocks that are expected to have total returns of -15% or
worse over the next 3 months.

** This framework only applies to stocks listed on the Hong Kong Stock Exchange and China listings on the Singapore Stock Exchange. Occasionally, it is permitted for the total expected returns to be temporarily outside the
prescribed ranges due to extreme market volatility or other justifiable company or industry-specific reasons.

[ 16 ]