FBM30 1649.79
-0.30points (-0.02%) Volume
1,481mil Value 1,646mil
1) KLCI ended in negative after paring its morning gains
which rose on positive US housing permits data while German Chancellor Angela
Merkel gave support for the European Central Bank President Mario Draghi's
crisis-fighting strategy. Properties+0.56% outperformed the market led by
MAHSING+2.52%, UOADEV+2.23%. Market breadth was positive with gainers edging
decliners 373:369. Futures closed 1645.5pts (4points discount).
2) Heavyweights: TENAGA-1.31% RM6.80, PCHEM-1.36% RM6.54,
YTL-2.62% RM1.86, PETGAS-1.13% RM19.28, PETDAG-2.27% RM22.38, AXIATA+2.04%
RM6.00, MAYBANK+1.23% RM9.05, GENTING+1.23% RM9.06
3) DBT: PRDUREN 11.3mil @ RM1.00 (8.3% PUC, 33% premium),
SNTORIA 10mil @ RM0.61 (2.5% PUC, 5.4% discount), MYEG 7.8mil @ RM0.70 (10%
discount)
4) Situationals:
WCT+4.42% RM2.60: WCT was awarded RM1bn highway job from
the Oman government to co construct and complete a 44.75km dual
4-lane stretch of the Batinah Expressway. The Project is scheduled to be
completed in 36months. Orderbook has now topped RM3.7bn.
SWKPLNT+0.67% RM3.01: News reported Felda is eyeing a
meaningful stake in SWKPLNT to grow its landbank and production of CPO.
Felda is looking at buying more than the 30.39% held by major shareholder Datuk
Abdul Hameed Sepawi.
5) AFFIN
1H JUNE 2012
Tover+14.5% RM1.46bn Net +27.7%
RM306.8m EPS 20.5 sen
10% above cons (f) RM558m
The Group's profit growth for the half year ended 30 June
2012 was mainly due to the increase in net interest income attributed to the loan
growth during the period, higher fee based income and treasury income as well
as higher share of profit in associate company. AFFIN's gross loan outstanding
increased by a strong annualised growth rate of 12.9% during the half year
under review. The loan-to-deposit ratio was stable at 81.6% as at 30 June 2012
compared with 79.0% as at 31 December 2011.
AFFIN Bank Berhad Group continued to be the major
contributor to the AFFIN Group's bottom line, contributing a commendable PBT of
RM342.2 million for the half year under review compared with RM280.6 million
recorded in the same period previous year, an increase of 22%. The key
contributing factors for the improvement were an increase in other operating
income totalling RM26.8 million and an increase in net interest income by RM7.1
million due to the loan growth of RM2.2 billion for the period under review.
AFFIN Investment Bank Berhad (AIBB) Group recorded a 9% increase in PBT profit
at RM42.4 million, compared with
RM38.9 million for the same period of the preceding year.
The AIBB Group's fee income in investment banking advisory activities showed
significant improvement of 23% and its investment income, a 75% growth.
In addition, there was a net write-back of allowances for
loan and securities impairment of RM6.9 million. AXA AFFIN General Insurance
Berhad (AAGIB), a 33.6% associate of AFFIN, delivered a considerably
significantly higher PBT of RM74.6 million compared with RM3.3 million achieved
in the previous year. These strong results were due to higher earned premium of
RM105.3 million, higher investment income of RM4.1 million, lower overhead
expenses of RM3.8 million, net of higher net claims of RM37.7 million and net
commission incurred of RM6.7 million.
The increase in earned premium of RM105.3 million was in
turn due to the increase in net written premium mainly from motor, personal
accident and health classes of insurance, as well as the release of Unearned
Premium Reserve (UPR).
AFFIN's gross impaired loans ratio improved to 2.55% from
2.84% as at 31 December 2011 and is comparable to the industry's average.The
impaired loan loss coverage stood at 68.3% from 72.8% as at end December 2011.
The core capital ratio and risk-weighted capital ratios
were healthy at 10.6% and 13.3% respectively as at 30 June 2012.
Recently the Bank has been linked to acquiring a stake in
Bank Muamalat from DRB Hicom. HOLD.
6) Market - The KLSE will be closed for Raya celebrations
on the 20th and 21st, resuming trade on 22nd Weds.
