Research
Malaysia
30 December 2016
Daily Report
KEY NUMBERS
Parameter
KLCI
DJIA
DAX
FTSE
SHCOMP
HSI
STI
JCI
SET
Crude Oil (USD/bbl)
USD/MYR
CPO (RM/tonne)
3 Yr MGS (%)
5 Yr MGS (%)
10 Yr MGS (%)
20 Yr MGS (%)
Msia GDP (%)
OPR (%)
Last Close
1637.93
19819.78
11451.05
7120.26
3096.097
21790.91
2889.15
5302.566
1537.81
53.77
4.485
3106
3.424
3.619
4.217
4.673
4.3
3.00
Change
7.63
-13.9
-23.94
14.18
-6.14
36.17
-9.15
93.121
13.21
-0.29
0.002
-24
-0.048
-0.034
-0.057
-0.073
% Change
0.47
-0.07
-0.21
0.20
-0.20
0.17
-0.32
1.79
0.87
-0.54
0.03
-0.77
-1.38
-0.93
-1.33
-1.54
KEY NEWS FOR THE DAY
 US stocks closed fractionally lower on Thursday as investors remained reluctant to make big bets in a thinly-traded
session ahead of long holiday weekend. The S&P 500 closed down less than a point at 2,249.37. Six of the 11 main
sectors finished in positive territory, led by utilities and real estate sectors, but the gains were outweighed by losses
in financials and energy shares.
 The DJIA closed off 11 points, at 19,821.49. Goldman Sachs Group Inc and J.P. Morgan Chase & Co were among the
biggest losers on the Dow, finishing 1% and 0.7% lower, respectively. While the Nasdaq Composite declined 6.47
points, at 5,432. All three main indexes are on track to post solid monthly gains and double-digit annual returns with
one trading session to go in 2016.
 Ahead of the opening bell, stock-index futures were virtually unchanged after mixed economic data. Weekly
jobless claims tumbled to extremely low levels that have been the norm since the summer. Meanwhile, the trade
deficit widened by more than expected. Oil futures ended a four-day string of gains Thursday, with the US
benchmark failing to sustain a bounce after data showed a rise in domestic crude-oil inventories.
 MRT1: MMC Gamuda confirms RM21bn excludes ‘other costs’. The project delivery partner (PDP) for the Klang
Valley Mass Rapid Transport (MRT) Line 1 today confirmed that the RM21bn cited by the government as the
project’s total cost, excludes “other associated costs”. “Besides the construction cost of RM21bn for MRT1, there are
other associated costs such as fees for engineering consultancy, quantity surveyors, system integration works, site
This review prepared by Etiqa Insurance Bhd (EIB) is for internal circulation only. The opinions, statements and information contained in this review
are based on available data believed to be reliable. EIB does not warrant the accuracy of anything stated in the review in any manner whatsoever
and nor any reliance upon such things by anyone shall give rise to any claim whatsoever against EIB in respect thereof. EIB’s credit view is not a
recommendation to purchase, sell or hold a security, in as much as it does not comment on the security’s market price or its suitability for
investment.
Daily Report – 30 December 2016
investigations, topographical survey, overheads, contingencies and PDP fees,” said MMC Gamuda KVMRT (PDP) SB, a
consortium comprising MMC Corporation and Gamuda.
 Eagle High deal vital to our progress. The Federal Land Development Authority’s (Felda) decision to acquire a stake
in Indonesia’s PT Eagle High Plantation Tbk (EHP) is vital to its progress as it has reached a stage where it needs to
reinvent itself after six decades in the industry. Felda deputy director-general (management) Muzzammil Mohd Nor
said failing to do this would mean Felda would remain stagnant, while others in the global palm oil sector were
moving forward. Expounding the rationale behind the transformative deal, Muzzammil said in an interview yesterday
it is strategically too important to pass up as it would make Felda one of the biggest global palm oil plantation
companies.
 OCK to complete purchase of Vietnam’s telco tower firm by mid-January. OCK Group Bhd said it is on track toward
completing the USD50m acquisition of Vietnam’s largest independent tower company by mid-January next year,
which will contribute to the group's financials, as it is an "existing and profitable business with potential upsides". In
a filing with Bursa Malaysia today, OCK said OCK Vietnam Towers Pte Ltd, its indirect 60%-owned unit — it is 40%
owned by CapAsia Telecommunications Ltd — announced all conditions precedent under the share sale and
purchase agreement for the 100% equity interest in Southeast Asia Telecommunications Holdings Pte Ltd (SEATH)
has been fulfilled today.
 Sime Darby’s China dredging subsidiary deregistered. Sime Darby Bhd, which owns and operates Weifang Port in
Shandong Province, announced that its indirect subsidiary Weifang Binhai Haiwei Dredging Project Co Ltd (WBHDP)
has ceased operations. In a filing with Bursa Malaysia, the conglomerate said WBHDP, whose activities were
dredging of embankment projects, excavation, dredging and maintenance of ports and channels, fencing and filling
of foundation, leasing of vessels and related facilities, had applied for deregistration on 29 Feb and was deregistered
on 27 Dec.
 E-commerce fuels growth of Pos Laju. Courier services are set to overtake traditional postal services as Pos Malaysia
Bhd’s biggest revenue driver, said its group CEO Datuk Mohd Shukrie Mohd Salleh.
 Margma lowers this year’s export forecast to RM13.8bn. Malaysian Rubber Glove Manufacturers Association
(Magma) has lowered this year’s export forecast to RM13.8bn from an earlier target of RM14.3bn.
 Vizione prepares for fresh chapter with new board. Vizione Holdings Bhd, formerly known as Astral Supreme Bhd, is
preparing for a new chapter after having replaced all of its former directors with a new board (BT).
 Country Heights appeals order to par RM22m tax. Country Heights Holdings Bhd’s unit Country Heights SB has
appealed to the Finance Ministry agains the Shah Alam High Court order to pay the government tax arrears
amounting to RM22.49m.
 UMW consolidating ops in Sabah and Sarawak. UMW Holdings is said to consolidating its operation in Sabah and
Sarawak, according to the sources. One of them says the company, which engages in the wholesale distribution and
industrial machinery and equipment, may close a branch there in light of the gloomy operating environment.

SMTrack submits overdue annual report, shares to resume trading today. SMTrack Bhd finally submitted its long
overdue 2016 annual report to Bursa Malaysia yesterday. However, the group external auditor KC Chia&Noor
expressed a qualified opinion on its financial statements. The auditor highlighted three issues that remained
unresolved during fiscal period FY16, namely carrying value of certain assets, accounts’ opening balances and a gain
on disposal of a subsidiary company.
This review prepared by Etiqa Insurance Bhd (EIB) is for internal circulation only. The opinions, statements and information contained in this review
are based on available data believed to be reliable. EIB does not warrant the accuracy of anything stated in the review in any manner whatsoever
and nor any reliance upon such things by anyone shall give rise to any claim whatsoever against EIB in respect thereof. EIB’s credit view is not a
recommendation to purchase, sell or hold a security, in as much as it does not comment on the security’s market price or its suitability for
investment.
Page 2 of 3
Daily Report – 30 December 2016
KEY ECONOMIC NEWS FOR THE DAY

US: Treasuries aimed higher Thursday, extending gains on the back of the year's final Treasury auction which
saw solid demand. The market was also boosted by institutional buying into the year-end along with general
safety buying accompanied by bumps in volume. Late position squaring tempered gains ahead of the shortened
Friday session. The 10-year settled near 2.475% from a post-auction high near 2.46% and 2.505% close.

US: Filings for US unemployment benefits fell for a third week in the last four, showing a resilient labor market.
Jobless claims declined by 10,000 to 265,000 in the week ended Dec. 24 from a six-month high in the prior
period, a Labor Department report showed. The number of applications matched the Bloomberg survey’s
median forecast.

US: The US last month posted its largest merchandise trade gap since March 2015 at the same time inventories
piled up at the nation’s wholesalers and retailers, painting a mixed picture for fourth-quarter gross domestic
product, according to an advance report from the Commerce Department. The gap in the trade of goods
widened 5.5% in November to US$65.3bn, exceeding all estimates in a Bloomberg survey of economists and
showing America’s net export position will subtract from quarterly GDP.

Asia: Thailand's industrial output rose for a fourth straight month in November and at the fastest annual pace
in 43 months. The Industry Ministry said its manufacturing production index (MPI) in November was up 3.81%
from a year earlier. A Reuters poll forecast a rise of 0.20%. In October, output edged up 0.1% from a year earlier.

Asia: Bank of Korea to keep policy easy in 2017. South Korea's central bank said on Thursday it plans to keep its
monetary policy accommodative next year to support economic recovery and to push inflation to reach the
bank's target of 2%. In its annual plans for policy direction, the Bank of Korea (BoK) said it sees the output gap
persisting through next year as the economy will lack the momentum to reach full capacity.

Asia: China pledged more proactive fiscal policy in 2017 while vowing to enhance control over local government
debt, as policy makers in China seek to sustain steady growth while defusing risks. Fiscal policy will be more
proactive and effective next year, and more tax cuts will be rolled out, according to a statement released. China
will "reasonably" expand expenditures and improve efficacy, while strengthening management of local
government debt, it said.

Malaysia: Another quiet day in the market, with better bids seen ahead of long new year weekend for MGS,
yields unchanged to 1bp lower. Onshore IRS continued to be quiet and not much prices seen.
Disclaimer:
This document has been prepared by Etiqa Insurance Berhad (EIB) solely for informational purposes and shall not be
construed as the basis for making investment, financial or other decisions. Past performance is not indicative of
future results and no representation or warranty is made regarding future performance. EIB makes no representation
or warranty of any kind, express, implied or statutory regarding, but not limited to, the accuracy of this document or
the completeness of any information contained or referred to in this document. This document is distributed on the
express understanding that, whilst the information in it is believed to be reliable, it has not been independently
verified by EIB. EIB and any of its related affiliates accepts no liability and will not be liable for any loss or damage
arising directly or indirectly (including special, incidental or consequential loss or damage) from your use of this
document, howsoever arising, and including any loss, damage or expense arising from, but not limited to, any defect,
error, imperfection, fault, mistake or inaccuracy with this document, its contents or associated services, or due to any
unavailability of the document or any part thereof or any contents.
This review prepared by Etiqa Insurance Bhd (EIB) is for internal circulation only. The opinions, statements and information contained in this review
are based on available data believed to be reliable. EIB does not warrant the accuracy of anything stated in the review in any manner whatsoever
and nor any reliance upon such things by anyone shall give rise to any claim whatsoever against EIB in respect thereof. EIB’s credit view is not a
recommendation to purchase, sell or hold a security, in as much as it does not comment on the security’s market price or its suitability for
investment.
Page 3 of 3