Reuters: Hot Stocks: STOCKS NEWS MALAYSIA-ABN favours Malaysia, Thailand in SE Asia

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STOCKS NEWS MALAYSIA-ABN favours Malaysia, Thailand in SE Asia Jun 19th 2012, 10:26 Tue Jun 19, 2012 6:26am EDT Countries and companies that are exposed to domestic demand such as Malaysia are preferred in view of the rising risk of a slowdown in global demand, ABN Amro Private Banking says. Developments in Europe and recent macroeconomic data coming out of the United States, China and India have heightened the risk of a slowdown in global demand, it says. Around 46 percent of Malaysia's earnings come from domestic sectors, ABN Amro says in its third-quarter Investment Outlook report. Also, countries with monetary and fiscal flexibility will do well, as stimulus will boost domestic demand growth, it says. "China, Malaysia and Thailand fit the bill here as China could front-load its infrastructure projects, while both Malaysia and Thailand have already embarked on reconstruction projects," ABN Amro says. ABN Amro remains overweight on emerging markets and emerging market Asia, in part because valuations are undemanding. Malaysia is trading at 11.2 times price to earnings, lower than 11.9 times of Indonesia, 14.1 times of Vietnam and 18.9 times of the Philippines, according to Thomson Reuters data. Malaysia's benchmark stock index has risen 4.2 percent this year, making it Southeast Asia's second-worst performing bourse behind Indonesia's index, which gained just 1.5 percent. Thai SET index has risen 14.4 percent this year, the third best after a 22.6 percent gain in Vietnam and a 16.2 percent of the Philippines. 1722 (1022 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ************************************************************ 08:47 STOCKS NEWS MALAYSIA-Maybank raises Kossan to 'buy' Maybank Research raised its call on rubber manufacturer Kossan Rubber Industries Bhd to 'buy' from 'hold' on the back of declining latex costs and a stronger U.S. dollar. "Kossan's current latex:nitrile sales mix is 62:38 and it should benefit from the downtrend in key input costs," Maybank said in a note on Tuesday. "Additionally, earnings should also improve on a stronger USD as the bulk of its sales receipts are based in USD," Maybank added. Maybank said Kossan's capacity expansion plans for its nitrile and surgical gloves would boost 2H2012 and 2013 earnings. Raising the target price to 3.75 ringgit ($1.19) per share from 3.50 ringgit, Maybank kept its 2013-2014 earnings per share forecasts but trimmed 2012 forecasts by 4 percent to factor in start-up costs from Kossan's glove factory in China. 0939 (0139 GMT) (Reporting by Anuradha Raghu in Kuala Lumpur; anuradha.raghu@thomsonreuters.com) Link this Share this Digg this Email Reprints

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