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Slate for its debut trading tomorrow (10th July 2013), can AirAsia X follows the footsteps of its sister company AirAsia? What would happen tomorrow pretty much depends on the fair value given by various research houses. AirAsia X is a leading long haul low cost carrier since operating on Nov 2007, primarily in the Asia Pacific region. Currently, it serves 14 destinations acorss Asia, Australia and the Middle East, with 11 A330-300 planes. Investment analysis: Benefits from synergies as part of AirAsia group Strong brand name Operate in the fast growing aviation market in the world Lowest unit cost base in the region Strong ancillary income at RM141/pax and expected to grow further How about the risks? High jet fuel price World crisis i.e. war, terrorism, epidemic outbreak Slowdown in world economy Emergence of other long-haul LCCs Delaying of KLIA2 which may hamper its growth prospects Strengthening of USD against MYR, because 79% of its debt is denominated in USD So, what's the ...

Every wonder why we didn't cover the IPO for Tune Ins ? Other than CNY mood, it's because of the unexciting part of this new stock. Why? Please read on... Tune Ins Holdings Sdn Bhd (TIH) operates 2 core businesses. First, it provides online insurance where insurance products are sold as part of the customer’s online booking process with their partners namely AirAsia, Tune Hotels and AirAsia Expedia. TIH also operates a general insurance business, through 83.26% owned subsidiary - TIMB. Why invest in Tune Insurance Holdings? Wide and cost effective distribution channels Provide ease in buying coverage Exclusive partnership with AirAsia Ability to ride on AirAsia’s robust growth Additional revenue and cost synergies from TIMB Robust industry prospects However, some of the above investing reasons had also became the disadvantages of TIH. It's reliant on AirAsia business is too important. TIH's success is very much depends on the success of AirAsia businesses, and because...

Lackluster global markets. The Malaysian market sputtered in April after hitting a  record close of 1606.63pts early in the month. It then trended downwards together with most global markets, as political uncertainties in Europe sapped the strength of markets worldwide in the first half of the month, while political uncertainties at home dampened the KLCI in the second half of the month. This was indeed as per our expectations. Outlook: Sell in May and Go Away? We investigated the historical index performance over the months of May–Sept and Oct–April for the US and for Malaysia, Jakarta and Hong Kong to try and determine if there was any truth to the old adage. Analysis indicates that over the past 52 years in the US and 22 years in Asia, markets do indeed under-perform more during the months of May–Sept as compared to Oct–April, with the KLCI surprisingly emerging as a high beta market compared to the other three markets. What goes up ...

Essentially, with the uncertainties in Europe continuing amid a potential global slowdown in the economy, we will continue to see market volatility in the next few months. As such, we continue to advise investors to be patient and focus on Defensive counters , while looking out for opportunities to Trade. We continue to advocate Buying into Weakness when the KLCI falls towards the 1,300-pt level, focusing on Banks, O&G and Construction stocks while we advocate Selling into Strength on the same three sectors when the market rallies towards 1,500 pts. Festive Cheer in December? While we remain fairly defensive over the mid term, December may still be a bright spot amid the gloom. There is still a possibility of the traditional year-end rally and the just announced joint effort by various central banks, including the US Federal Reserve, the European Central Bank, the Bank of Japan, the Bank of England, the Swiss National Bank and the Bank of Canada to provide liquidity may just convin...

We still feel that there is downside to the KLCI although with non-GLICs supposedly close to maximum cash levels and GLICs supposedly not aggressively supporting the market up till now, further downside maybe somewhat less than our recession market bottom of 1086 points. OSK: Normalised performance of September’s top stock picks With Budget 2012 (to be announced on this Friday 7th Oct) around the corner, OSK has no major expectations of the budget except that it will probably be people friendly and include: No further tightening of regulations with regards to the property sector which should be positive for property stocks No hike in Brewery Tax which will be positive for Carlsbergy and Guiness A 4.5 - 6.8% hike in Tobacco excise duties which will be mildly negative for BAT and JTI A likely hike in Civil Servants salary as the last hike was in 2008 which will be positive for MBSB OSK: Defensive Top 10 Buys OSK remain defensive for now with expectations of a further drop i...

Local market, view as one of the most defensive market in the world, suffering the same fate as regional market this round. The correction which started early of August had actually hit our shores too. Who say we are in a better position when market downturn? No one raised their hands now. Ha..aaa. Historically, our local market is very " Dull " if foreigners do not participate here. KLCI shoot up because there is an in-flow of foreign funds into Bursa Malaysia. During that time, we are very joyful and assumed that they're in for long-term (until recently). Don't be " syok-sendiri laa " bro. Investors are here because they want to make profit. After achieving their goals, what would they do? Of course, taking profit (and bring down KLCI) and left our country. Then, when is the best time to leave? Now or never. In other words, KLCI went up and go down mainly because of foreign funds. Retail investors definitely do not have the power to muscle the markets. Agr...

The KLCI lagged the region in April as it suffered from the fallout ahead of the Sarawak state elections. With that behind us, OSK see the market recovering in May as they believe the 1Q2011 will at least meet downbeat expectations after the past 4 quarters of disappointments. With the potential for reasonable results, we believe the market will shift back to fundamentals and look back at Big Caps. KLCI was a laggard With the KLCI recording a total return of -0.25% in April, Malaysia's standing YTD slipped significantly to being the 4th worst performing market from being the 4th best. As mentioned earlier, the key drag on the Malaysian market was the Sarawak state elections. While the market had put in some gains ahead of the Invest Malaysia conference on 12 and 13 March, by these dates concerns that the incumbent Barisan Nasional would fare below expectations in the state elections led to significant profit taking in the Malaysian market. Towards month end, with the BN retainin...

Wall Street Journal (WSJ) recently announced the result of Asia 200 survey, which ranked the top 10 companies of selected countries according to financial reputation, corporate reputation, quality, vision, and innovation. Want to know the winners of Malaysia? Wall Street Journal: "For the second year in a row, Public Bank Bhd ranked 1st overall among Malaysian companies. The bank's profit rose 20% to RM 2.2 billion on a 12% rise in revenue during the first nine months of the year. Customer deposits grew at an annualized rate of 12.2%. Public Bank, Malaysia's 3rd largest lender by assets behind Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd (CIMB), also ramped up its Tier 1 capital ratio while touting a dramatically lower impaired-loans ratio at 1.2%, versus 3.4% for the industry overall." Source: Wall Street Journal Meanwhile, CIMB Group this year makes a new showing on the Asia 200 list, with a #7 spot. The group helm under Dato' Sri Nazir Razak,...

"If Tigers were meant to fly, they would be born with wings" What do you think? Congratulations, AirAsia won another award - " The Best Airline Advertisement " (if there is such an award)!!! Interestingly, both airline has many similarities. Both are budget airline Both are headed by Tony (AirAsia's Tony Fernandes and Tiger Airways' Tony Davis) Below is the full-story of the battle: Fernandes : "We're Asians, not a bunch of white guys running the airline" Davis        : "It was a racist remark" Fernandes : "It was a tiny carrier " Davis        : "Tiger aims to be among the top three global airlines" < Then, the famous advertisement popped up in Singapore newspaper > Davis        : "It's no wonder some of our competitors are getting so rattled " Because of the interesting advertisements from AirAsia, DiGi, Maxis, Celcom... I like reading advertisemen...