FBM30 1632.57
-3.60 points (-0.22%) Volume
846mil Value 1,514mil
1) KLCI fell for the 3rd consecutive days after Moody
changed its outlook for Germany, Netherlands, Luxembourg to negative amid the
European debt crisis which are reeling on fears Spain could need a bailout.
However improving HSBC China manufacturing PMI which is 5 months high at 49.5
gave hopes that China's economy could have bottomed. Market breadth was negative with decliners leading
gainers 413:294. Futures closed 1629pts (3.5points discount).
2) Heavyweights: MAXIS-1.35% RM6.56, PPB-1.94% RM15.20,
KLK-1.17% RM23.70, IOICORP-0.56% RM5.30, TENAGA-0.45% RM6.69, GENM-1.14%
RM3.46, GENTING-0.32% RM9.30, BAT+4.42% RM61.00
3) DBT: HAPSENG 18.8mil @ RM1.73 (1.5% PUC), INARI
17.2mil @ RM0.235 (5% PUC, 37% discount)
4) Situationals:
TGOFF+22.15% RM0.965: Share price rose after declaring
35sen in special dividend. This is part of TGOFF's plans to sell marine
business to Ekuinas for RM220mil. Shareholders will also be entitled to
subscribe for convertible preference shares under Ekuinas.
FABER+3.6% RM1.44: News reported that top ranking health
ministry officials had paid a visit to Faber's plant in Bukit
Beruntung and had personally conveyed their assurance that the renewal of the
hospital services contract would be "eventually" granted to FABER.
5) GLOBETRONICS
1H JUNE 2012 Tover
-8% RM126.3m Net +14.2% RM15.91m EPS 5.92sen
5% below cons(f) RM33.4m
The better profits achieved is mainly due to better
product mix combined with various productivity improvement and cost control
measures implemented. The lower top line number is partly due to its conscious
decision to move away from its traditional business of IC/SOIC to higher margin products to LED
products and crystal timing devices which underwent a major expansion last
year. The company will continue to focus on escalating up the value chain and
riding on the R&D initiatives in new products which could see the
introduction of a new product line in the 2H which taps directly into the
rapidly growing smartphone market. This expected boost to 2H numbers could see
the company hit a new record in earnings achieved. BOW, with an expected
attractive yield of 8%.
6) Market - Maintain current range with an immediate
support of 1625pts as European woes dominate headlines again.
