ASEAN Stars Outlook, PTT, Genting, Maybank

ASEAN Stars are 210 ASEAN Stocks representing the 30 blue chips of each exchange. The ASEAN Stars are selected based on market capitalisation and liquidity.
The ASEAN Stars will open lower today after Alcoa and Japan dominated the overnight trading on Wall St.
Materials stocks in general were down with declines in metals prices, with worries that Japan’s massive earthquake and a nuclear crisis could weaken recovery prospects in the world’s third-largest economy.
The DJIA .DJI closed down 117.53 pts, or 0.95%, at 12,263.58.
The Standard & Poor’s 500.SPX closed down 10.30 pts, or 0.78%, at 1,314.16.
The NAS Composite Index .IXIC closed down 26.72 pts, or 0.95%, at 2,744.79..
Commodities finished lower across the board Tuesday, led South by a 3.5% sell off in the Grains. July Wheat finished lower by 4.8% to 7.92 per bushel in profit taking from its recent run to above 8.
May Crude Oil fell 3.3% to settle at 106.25 bbl, extending its sell off to a 2nd straight session. Crude Oil has now shed over 6.50 or 5.8% from yesterday morning’s 2.5 yr high at 113.46.
Bank of Thailand (BoT) governor said on Tuesday that he expected the Thai baht to remain strong.
He said foreign capital inflows to equities and demand for baht from gold exporters also pushed up the Thai currency.
However, the baht had depreciated during the past few days as investors sold some assets ahead of the long holiday.
The BoT also reported that foreign reserves went up to US$184.6 billion on April 8, from $182 billion on April 1.
The net forward position stood at $21.3 billion, compared with $20.8 billion over the same period.
The reserve money expanded to 1.207 trillion baht on April 8, from 1.200 trillion baht on April 1, the central bank said.
The net claims on the government rose to 175.2 billion, from 161.5 billion baht. And the net claims on the financial institutions stood at minus 4.15 trillion baht, comparing with minus 1.2 trillion baht over the same period, according to the BoT.
The Government of Malaysia have announced a 10-year plan to strengthen its capital markets and win investment.
The plan promised to speed up approval for businesses, improve fund-raising rules and allocate more funds to venture capital and private equity firms through incentives and other support.
Malaysia said its goal is to almost triple the size of its capital market to $1.9 trillion by 2020.
Prime Minister Najib Razak also announced plans to list the federal land authority’s sugar business on the stock market, boost Malaysia’s ability to structure cross-border Islamic financial deals and gave a target to sovereign wealth fund Khazanah Nasional to sell non-core assets by year end.
‘We are paving the way not only for a more equitable society but for a Malaysia that is more stable, more transparent and more market-friendly,’ Mr Najib told an annual gathering of Malaysian corporate leaders.
Jakarta will see further falls today and the best strategy today is to buy those quality stocks that will rebound.
Shayne Heffernan Strong Buys are
Bakrie Sumatera Plantations, one of Indonesia’s best plantation companies, fell 1.4 percent to Rp 355 and looked very oversold late in the day. Bakrie Sumatera shares fell after palm oil and rubber prices retreated, reducing its revenue outlook. September-delivery rubber lost as much as 3.8 percent to 457.2 yen per kilogram ($5,688 per ton) in Tokyo, while June-delivery palm oil fell 2.1 percent to 3,345 ringgit ($1,105) per ton in Kuala Lumpur.
Both Rubber and Palm Oil have good fundamentals for growth and will return to record highs this year.
Tambangraya Megah, a unit of Asia’s best mining company Thai miner Banpu, shed 2.5 percent to Rp 48,100. Lower oil prices reduce the appeal of alternative fuels such as coal.
In Jakarta yesterday the JCI lost 26.61 points, or 0.7 percent, to close at 3,719.23, ending a four-day winning streak. About 2.7 billion shares valued at Rp 3.7 trillion ($429.2 million) changed hands. Decliners beat gainers 151 to 72.
News that Bank Indonesia decided to keep its benchmark interest rate unchanged at 6.75 percent saw the Jakarta Composite Index and the rupiah fall on Tuesday.
The rupiah fell 0.1 percent to trade at 8,655 to the US dollar as the market closed on Tuesday, from 8,649 on Monday.
Although Bank Indonesia kept its benchmark rate steady on Tuesday, analysts and economists are convinced it cannot maintain that stance for long in the face of rising consumer prices.
As expected, Bank Indonesia left its policy rate unchanged at 6.75 percent, relying on a strengthening rupiah to keep inflation in check. The rate stayed the same for a second successive month after a rise of 25 basis points in February, the first increase in more than two years.
But experts said inflationary pressures would increase in the second half, forcing the central bank to raise its rate.
Singapore will open lower today and the Shayne Heffernan best buys on the dip are Genting Singapore, owner of Resorts World Sentosa, the stock was oversold yesterday down 1.89% to S$2.08 as investors remained excessively wary about the group’s prospects in the face of Singapore’s Casino Regulatory Authority’s investigations into alleged illegal activity relating to junket operations in the city-state’s two casinos.
Genting Singapore, regardless of the Singapore’s Casino Regulatory Authority’s rates a strong buy.
Crude palm oil stocks were also oversold, with Golden-Agri Resources was down 2.8% at S$0.705 and Wilmar International down 1.3% at S$5.23 on concerns about oversupply of palm oil.
Golden Agri and Wilmar will recover very fast.
Maybank and Sime Darby stand out on the Bursa Malaysia today as the market will open lower.
Maybank
Malayan Banking Berhad (Maybank) is engaged in the business of banking and finance. Through its subsidiaries, Maybank operates in six segments, which include consumer banking, business and corporate banking, global market, investment banking, insurance and asset management and international banking.
Its global market segment comprises the full range of products and services relating to treasury activities and services, including foreign exchange, money market, derivates and trading of capital market instruments. Its investment banking segment comprises the business of an investment bank, discount house and securities broker. Its insurance and asset management segment comprises the business of underwriting all classes of general and life insurance, offshore investment life insurance, general takaful and family takaful, asset and fund management, nominee and trustee services and custodian services.
Shayne Heffernan strong buy, Sime Darby, the world’s largest listed palm oil producer, will make its first investment in Africa, with the establishment of plantations in Liberia in April.
Sime Darby is Malaysia’s second-largest company by value, with a market capitalisation of 47 billion ringgit. It owns more than 5,000 square kilometres (1,930 square miles) of palm oil plantations in Malaysia and Indonesia.
Sime Darby was granted a 63-year concession in 2009 to develop 220,000 hectares (543,500 acres) of land in Liberia, will begin planting oil palm on 10,000 hectares in the first phase.
“This foray is most significant as it allows us to explore opportunities for further growth and development in other emerging markets and regions,” said Franki Anthony Dass, executive vice-president of Sime Darby Plantation.
Sime Darby, which already has palm oil plantations in Malaysia and Indonesia, will invest 70 million ringgit ($23 million) in the project, Dass added in a statement.