Fearless forecast: Inflation will rocket to 4.4%

Blame it on HDB rental rebates.

According to CIMB, CPI is expected to accelerate to 4.4% yoy in Sep from 3.9% in Aug due to the absence of utilities and HDB rental rebates since Mar 2012, combined with the rise in private transport costs.

Here's more from CIMB:

We expect IP to show growth of 2.2% yoy (-2.2% in Aug), with non-tech manufacturing probably offsetting a likely sluggish technology sector.

If IP comes in below the 2011 level, there is an increased risk of a poor 4Q GDP. During the week, we initiated coverage of IGB REIT, Malaysia’s largest listed REIT, with an outperform recommendation and RM1.50 target price.

IGB REIT has the largest exposure to the Malaysian retail industry through two major assets. Growth is likely to come from higher rents for The Gardens Mall in 2013 as leases for more than 50% of its NLA will be expiring.

We also began coverage of Citra Marga Nusaphala Per PT with an outperform rating and Rp3,100 target price. CMNP is Indonesia’s largest private toll operator and has pure exposure to the rapid growth in urban traffic.