MIB Reseach Summary - 9 Oct 2014

MY Aviation Sector: Maintain Neutral The year of living dangerously

2Q14 results season was a disappointment; sector core loss of MYR534m versus a profit of MYR31m in 2Q13. Industry has reached the bottom, but 2015 looms with cost challenges and other uncertainties. Maintain Neutral; both AirAsia and MAHB are trading close to fair value. AirAsia X is the sole SELL. Axiata Group: Maintain Buy Showcasing its expertise  Shariah-compliant   Celcom’s IT issues have been resolved, new product launches are in the pipeline. XL-Axis integration has progressed smoothly, and is expected to be completed by end-2014. Reiterate BUY with an unchanged TP of MYR7.60. Technicals: Next downward stops at 1,802 & 1,800 The FBMKLCI declined 9.22 points to 1,824.32 yesterday, while the FBMEMAS and FBM100 also closed lower by 115.57 points and 91.42 points, respectively. We recommend a “Sell on Rallies” stance for the index. Trading idea is Take Profit call on COASTAL with downside target areas at MYR4.09 & MYR3.33.