1) KLCI fell for a third day as HSBC China PMI for April came in at 49.1 showing manufacturing may contract for a 6th month while political uncertainty in France and concerns on Eurozone debt also weighed on the regionals (HSI-2%, STI-1%). Index found support at its 50MA level, rebounding from its low of 1580.28 (-11.57pts) after some buying of key heavyweights near close led by TENAGA, PETDAG, GENM. Broader market was negative as decliners overwhelmed gainers 582:199. Futures closed 1574.5 (9 points discount).
2) Heavyweights: SIME-0.61% RM9.73, GENTING-1.67%
RM10.62, AXIATA-0.93% RM5.32, CIMB-0.66% RM7.50, PBBANK-0.44% RM13.68,
YTL-2.33% RM1.68, PETDAG+3.5% RM19.54, PCHEM+0.92% RM6.62
3) DBT: MTOUCHE 70mil @ RM0.37 (30.2% PUC, 28.8%
discount), DBE 11mil @ RM0.09 (1.6% PUC)
4) Situationals:
KENCANA+4.7% RM3.35/SAPCREST+3.06% RM5.05: Stock prices
rose after company announced that trading will be suspended
beginning 2 May to facilitate the capital repayment exercises and in
conjunction with the merger of both companies into a new listed entity
SapuraKencana Petroleum Bhd. The ex-date will be on May 4th while entitlement
will be on 8th May.
5) BAT
1Q MAR 2012 Tover
+5% RM1.04bn Net +8.9% RM194.5m EPS 68.1sen 4.2% above
cons(f) RM746m Profit before tax increased by 8.8%, higher than the increase in
gross profit, mainly due to lower spend in marketing and distribution costs as
following the change in the Group's distribution model in Q3' 2011. With the
change from Company-owned to exclusive third party distributorship, the Group
incurs a higher distributor margin to third party (hence lower gross profit)
but this is mostly offset in lower own distribution costs (classified under
operating expenses) . Profit after tax increased by 8.9%, in line with profit
before tax. The Group's market share year to date of 62.5% was stable, up 0.2
percentage point as compared to preceding quarter. It declared an interim div of 65sen and is on track to
payout a yield amounting to 4.6%. HOLD
6) Market - The KLCI continued to exhibit weakness
testing its immediate resistance around the 1582-1587 levels. With no
improvement in outlook for Europe and uncertainty surrounding the GE and the
scheduled "BERSIH" rally scheduled this weekend, the market looks likely to
continue its current sell down to around the 1565pts levels.
