*Maybank IBG Kopi-O (7 Feb 2022)*
Nikkei 27440.0 0.73%
Kospi 2750.3 1.57%
SSE 3361.4 -
HSI 24573.3 3.24%
TWSE 17674.4 -
SET 1674.2 0.31%
JCI 6731.4 0.71%
STI 3331.4 0.47%
KLCI 1522.8 -0.19%
*Maybank IBG Key Calls*
*Singapore Exchange Ltd - Volatility play?*
SGX’s 1H22 PAT missed MIBG expectations. Its derivatives, FX and commodities segments are delivering growth. Rising global uncertainty from rate hikes, Chinese domestic policy, inflation as well as regional re-opening should drive upside to volumes for SGX’s risk management solutions going forward. Upgrade to BUY. Singapore’s increased relevance as a value-oriented investment destination should drive an inflection in performance, we believe.
*MY*
o The KLCI is set for a cautious start amid interest rate hike concerns. Geopolitical tensions as well as the lackluster performance in Wall Street last Friday will also weigh on sentiment. O&G and plantation stocks, however, could take center stage after commodity prices strengthened. Technically, we expect the benchmark index to range between 1,515 and 1,540 today, with supports at 1,500 and 1,475.
*Plantations*: Domestic CPO price gap has widened further between Indonesia (ID) and Malaysia (MY) post ID’s new export ruling that came into effect on 27 Jan. 1M FCPO in MY (ie a proxy of global export prices) was up 1.8% WoW while ID’s domestic CPO price was down 2.8% WoW. The relatively more MY-centric growers such as IOI, SOP, BPLANT, TAH, THP, HAPL, and FGV are clear beneficiaries. Stay POSITIVE on the sector. Preferred BUYs remain with KLK, SOP and BPLANT.
o *Uni Wall Aps (UNIWALL MK)*: Its 80%-owned subsidiary NS Aero City S/B had entered into a memorandum of collaboration with Sun Solutino Pte Ltd to initiate participation and cooperation to develop certain parts at the Malaysia Vision Valley 2.0. The collaboration includes funding by Sun Solutino for the development of certain parts at the beach area of MVV 2.0, new data centres, solar farms as well as other solar energy investments with an estimated investment value of up to MYR1b. UNIWALL is listed on the LEAP Market, which is only meant for sophisticated investors only.
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