FBM30 1652.90
+6.58points (+0.40%) Volume
1,015mil Value 1,255mil
1) KLCI ended at its all-time high as regionals were
higher after Bank of Japan minutes showed policy makers are prepared to
increase stimulus measures while Germany's economy slowed less than forecast.
Investors will now look ahead for US retail sales report for recovery signals
in US economy. Index was marked up 2 points at auction led by PPB, BAT and
ARMADA. Market breadth was positive with advancers edging decliners 362:349.
Futures closed 1651.5pts (1.5points discount).
2) Heavyweights: PPB+5.87% RM14.78, BAT+2.76% RM63.30,
IOICORP+0.97% RM5.22, DIGI+0.84% RM4.83, YTL+2.13% RM1.93, AXIATA+0.34% RM5.90, MAYBANK+0.22% RM8.95, KLK-0.91% RM23.76
3) DBT: SUNREIT 10mil @ RM1.50 (3.8% discount), GLOTEC
5.3mil @ RM0.06 (20% discount)
4) Situationals:
KKB+2.07% RM1.48: KKB Engineering Berhad (KKB) announced
KKB has received a LOA from the Government of Sarawak for the
Proposed Transmission Pipeline to Sama Jaya Free Industrial Zone for a contract
sum of RM48mil. The contract shall be completed in 24 months.
AZRB+6% RM0.725, TRC+1.61% RM0.63: MRT Corp today awarded
three station packages for the MRT Sungai Buloh-Kajang project with a
total value of RM563 million. TRC was awarded with Package S1 for the
construction and completion of elevated stations and other associated works at
Sungai Buloh, Kampung Baru Sungai Buloh and Kota Damansara worth RM283.7mil. AZRB won Package S6 which is for the construction and
completion of the Taman Suntex, Taman Cuepacs and Bandar Tun Hussein Onn
elevated stations and other associated works worth RM174.6mil. Package S7 was
secured by Apex Communication Sdn Bhd valued at RM 104.7mil.
5) MAS
1H JUNE 2012 Tover -4% RM6.4bn Net (RM520m)
EPS (15.6sen)
Cons(f) (RM523m)
The group recorded a 4% drop in turnover for the first
half but losses narrowed to RM520m vs RM767m YOY largely due to lower
operational cost in the 2Q. The
Group recorded a lower loss after tax of RM349.2 million for the second quarter ended 30 June 2012,
compared to RM526.7 million loss after tax in the same quarter last year. The
after tax loss is inclusive of unrealised foreign exchange loss of RM173.0
million (Quarter ended 30 June 2011: RM0.8 million loss) and fair value change
of derivative of RM15.3 million loss (Quarter ended 30 June 2011: RM24.9
million loss).
The operating revenue for Cargo Services which has
decreased by 14% to RM897.5 million is the main contributor to the decrease
in total operating revenue for the quarter. The decrease in operating revenue
in Cargo Services was due to 15% decline of load tonnage and 16% decline of
capacity. Total operating expenditure has reduced by 13% to RM3,403.0 million
for the current quarter this year compared to the same quarter last year.
Operating expenditure in Airline Operations decreased by 8% or RM545.7 million
and operating expenditure in Cargo Services has decreased by 8% or RM80.7
million for the quarter. The decrease in operating expenditure in Airline
Operations was due to lower non-fuel cost by 9% or RM344.1 million and a
decrease in fuel cost by RM201.7 million or 8% over the same quarter last year
in which average fuel cost has decreased from USD140 per barrel to USD 132 per
barrel. The decrease in fuel cost is also due to route rationalisation. The
decrease in operating expenditure in Cargo Services was mainly due to decrease
in fuel cost by 35% or RM95.9 million over the same quarter last year in line
with the reduction in capacity despite a slight increase in non-fuel cost in
Cargo Services by 2% or RM15.3 million compared against the same quarter last
the same quarter last year.
Going forward the company plans to continue the current
rationalization exercise that it is undergoing through increasing revenue
generation will be through aggressive marketing, promotions and branding
initiatives, as wellas increasing fleet utilization and the generation of
additional frequencies to popular regional destinations whichyield higher
revenue and enable better cost management. The fleetrenewal exercise to have a
younger and more fuel efficient fleet continues as a significant initiative.
This will also enable Malaysia Airlines to offer customers an improved product
for their air travel needs, of which the A380 will lead this change.
In managing costs, a key initiative is the emphasis to
improve operational efficiency by increasing the fleet utilisation and reducing
turnaround times. This will be a foundation for Malaysia Airlines to implement
a new productivity model for improved efficiencies across all operating areas
to become the Preferred Premium Carrier.
HOLD
6) Market - As markets continue to stabilize, investors
are likely to move assets out of defensive names into more cyclical plays. BUY
HL Ind, Lion Ind, Parkson.
