March 20, 2017

PETALING JAYA: Credit Suisse (CS) said it is now time for investors to put their funds into Malaysian stocks as current valuations indicate that local equities are poised for a strong recovery.

Malaysia has underperformed its peers in the emerging markets due to several reasons, among them being the downward pressure on the ringgit as well the selldown in heavyweight sectors such as banks.
Read more at http://www.thestar.com.my/business/business-news/2017/03/18/credit-suisse-its-time-to-invest-in-malaysia/#i2zx9lKYjIzd4hjH.99

But now, according to CS in an extensive report yesterday, while the 34% decline in Malaysian equities on a dollar-adjusted basis over the past 45 months was warranted, the market bottom may be close at hand.

Calling it as “the ultimate contrarian trade”, the research house outlined 10 reasons to be bullish (see table).

Among them is that Malaysia’s GDP growth may see further upside, thanks to a rebound in commodities. Additionally, the government may have more leeway to increase spending, given its conservative average crude oil price forecast of US$48 per barrel, CS said.

“We believe that the recent stability in the commodity complex we have witnessed the last of the downgrades to near term growth expectations.

“We now expect a pick-up in growth to 4.5% this year (above consensus expectations of 4.3%), driven by public infrastructure projects, commodity-related investments and a boost to rural income from the recovery in rubber prices,” it explained.

image: http://www.thestar.com.my/business/business-news/2017/03/18/credit-suisse-its-time-to-invest-in-malaysia/~/media/6e9e3c3809c94d24a57732dee2661843.ashx?h=432&w=620

Another reason is on the improvement of earnings dynamics among Malaysian corporates. CS points out that at the sector level, the recovery in earnings revisions is led by the energy and mining space.

Additionally, among the larger sectors, consumer discretionary and staples have recovered sharply well into net positive territory with industrials and financials improving to at least neutral levels.

Another key catalyst for the markets is the attractiveness of the ringgit at present levels after significant devaluation.

Although Malaysia’s 15-year trend of a weaker ringgit in real effective exchange rate (REER) terms is justified by the steady erosion of its share of global exports, the 18% REER devaluation over the past three years appears severely overdone, given the relatively modest decline in export share over this period, CS noted.

One prominent beneficiary from the repair in the macro environment appears to be the banking sector, which is a heavyweight component for the FBM KLCI.

The research house said that private sector credit growth had just bounced off a 13-year low at 5.6% year-on-year in January compared to 4.2% in September last year.

“Encouragingly, deposit growth recovering back into positive territory should serve to moderate the pick-up in the loan-to-deposit ratio, which is currently at elevated levels which typically dampens credit extension,” it said.

In light of its market recommendation, CS has picked its top 10 stocks which offer superior dividends and free cashflow yields.

The companies are Malayan Banking Bhd, CIMB Group Holdings Bhd, Axiata Group Bhd, Kuala Lumpur Kepong Bhd, Astro Malaysia Holdings Bhd, British American Tobacco (M) Bhd, IJM Corp Bhd, Gamuda Bhd, Alliance Financial Group Bhd and Malakoff Corp Bhd.

To date, the FBM KLCI is already up by 6.3%. Yesterday saw the largest one-day turnover in stocks since May 2016 with total trading volume of 4.98 billion shares valued at RM5.04bil.
Read more at http://www.thestar.com.my/business/business-news/2017/03/18/credit-suisse-its-time-to-invest-in-malaysia/#i2zx9lKYjIzd4hjH.99

 

source: the star online

Medical supplies and equipment based on artificial intelligence (AI) and robotic technology will dominate the global health care sector in the future, industry watchers said Sunday.

The remarks were made during the Korea International Medical Clinical Laboratories and Hospital Equipment Show (KIMES) at the Convention and Exhibition Center (COEX) in southern Seoul where nearly 1,300 medical instrument manufacturers from both home and abroad showcased their latest medical technologies and products.

Photo from ‘KIMES 2017’ (Yonhap)

The annual event, the 33rd of its kind, is hosted by the Ministry of Health and Welfare. The ministry said the goal of the event is to navigate the future of the global health care industry, which is largely seen as the next new growth engine.

Global IT giant IBM Corp. showcased its AI-based supercomputer called “Watson” that can diagnose and treat cancer, one of the leading causes of the death in the world.

Last year, Gachon University Gil Medical Center in Seoul employed Watson for the first time in the world to assist doctors in diagnosing cancer. Andrew Norden, Deputy Chief Health Officer at IBM Watson Health, said AI devices like Watson were created to help doctors not to replace them.

The doctor added that Watson can become human doctors’ greatest helpers, predicting more hospitals will adopt the system in the near future.

In a bid to raise the country’s competitiveness amid growing calls for South Korea to revamp its R&D strategy to catch up with other global powerhouses, the Seoul government has rolled out various measures to stimulate growth momentum.

South Korea-based SELVAS AI Inc. also unveiled its AI-based medical speech transcription solution, “Selvy MediVoice” and heath checkup machine, “Selvy Checkup.”

The midsized company supplies human-machine interaction (HMI) solutions, such as handwriting, image and speech recognition, through specialized research and development based on state-of-the-art deep learning technology.

“Visitors can experience the service of having six major cancers including lung and liver as well as other major diseases checked if they bring results of the latest health checkup through the Selvy system,” the company said in a press release.

Reflecting the growing interest in this field, companies taking part in the exhibition showcased more than 30,000 examples of advanced medical supplies and equipment, hoping to grab the attention of international buyers.

Major research centers and leading tech firms, including Samsung Electronics Co., as well as venture firms also introduced their latest robotic hardware to potential customers.

Curexo, one of the leading companies in the field, introduced the latest surgical robots created through a joint project with Hyundai Heavy Industries Co.

Market sources said that medical robots have increasingly taken over the surgical table at many local hospitals on the back of the government’s robust efforts for support measures and advanced medical technology. They said such developments will gain speed down the road and it can benefit people needing medical attention.  (Yonhap)

Source: The Korea Herald > Business > Technology