05.03.2009

Equity Focus
Oil & Gas: Underweight
– Sub-par scorecard in 4Q08
§ O&G’s combined earnings slumped 182% QoQ in 4Q08 with major disappointments at Ramunia, Shell, Petronas Gas and Petra Perdana.
§ We have cut 2009-10’s earnings forecasts by 16-19%, reflecting the sector’s down-cycle and a tighter funding environment.
§ Maintain Underweight with no key re-rating catalysts, but depressed valuations could fuel privatizations.

Other Local News
§ Bursa: Proposes share buyback for the first time
§ AirAsia: Says no need for rights offer
§ MAHB: Identifies site for new budget terminal
§ QL Resources: Article entitled “More rights issues on the way?"
§ Petra Perdana: Syndicated Transferable Term Loan Facilities of up to RM150m
§ Scomi: Defers rights issue
§ MMC: Agrees in principle
§ Politics: Tri-elections
§ Economy: Almost 76% of RM7b stimulus package disbursed
§ Power: Bakun expected to be ready October 2011

Outside Malaysia
§ U.S: Stocks rise around the world; Commodities gain, Treasuries fall
§ U.S: Economy worsened in last two months as consumers held back, Fed says
§ U.S: More than 8.3m mortgages are under water
§ E.U: Services shrink at record pace, pushing region deeper into slump
§ Japan: BOJ offers to buy JPY 150 b in corporate bonds
§ China: Wen to propose new stimulus measures to bolster faltering growth
§ India: May keep cutting rates to spur growth in third-biggest Asian economy
§ Indonesia: Cuts policy rate to boost consumer spending
§ Vietnam: Budgets VND 300tr (USD 17b) to bolster growth
§ Australia: Economy contracts for first time in eight years
§ Crude Oil: Rises to 5-week high on signs China will increase stimulus

Technicals
The local bourse ended the day mixed yesterday after a volatile trading session.