FBM30 1582.28
-1.52points (-0.10%) Volume
1,420.5mil Value 1,551mil
1) KLCI was marginally lower falling to a low of 1579.04
(-4.76pts) as investors remained cautious on political uncertainty in Europe
and China's leading economic index rose at a slower pace. Index traded in a
narrow four points band as investors stayed on the sidelines ahead of key FOMC
meeting and job numbers in US. Broader market remained negative as losers
outpace gainers 409:273. Futures closed 1576.5 (5.5 points discount).
2) Heavyweights: CIMB-0.93% RM7.43, IOICORP-0.75% RM5.31,
GENTING-0.57% RM10.56, AIRASIA-2.01% RM3.41, AXIATA-0.38% RM5.30, TENAGA+0.77%
RM6.53, MMC+5% RM2.74, YTL+1.19% RM1.70
3) DBT: BJASSET 19mil @ RM0.855, AGLOBAL 3.4mil @ RM0.21
(16% discount)
4) Situationals:
FAJAR+1.57% RM0.97: news reported FAJAR is expected to
bag a RM299mil job for the construction of Sungai Baru LRT under the LRT
extension project. The remaining 3 contracts - the system for Ampang line, the
card access system and the development of station 10 and 11 for Ampang line
will be awarded in a month or two.
AIRASIA-2% RM3.41: Share price fell to a low of RM3.35 on
worries high fuel cost could impact AIRASIA's 1Q earnings. Share price
rebounded after CEO Tony Fernandes stated 1Q result is still "good"
in an interview in Putrajaya.
5) GLOBETRONICS
1Q MAR 2012 Tover
-15% RM56.8m Net -3.5% RM6.2m EPS 2.31sen Div2sen
Lower revenues partially due to the winding down of China
operations but bottom line erosion marginal due to productivity improvements,
better cost controls and better product mix. During the quarter the company's
capital commitments totaled RM19.3m. These funds have been utilized to focus on
moving up the value chain and riding on R&D initiatives in new products and
design developments. This could be a signal of a better 2H from a new product
line. Based on annualized earnings, still trading at a reasonable 12x PE and
attractive historical yield of 7%. HOLD
6) Market - Technically due for short term bounce after
recent global retreat in equity markets but broad trend remains weak hence
maintain sell into bounce until new developments change the current outlook.
