FBM 1645.63
-8.41pts (-0.51% ) Volume
1,267mil Value RM1,660mil
1) KLCI continued to fall touching a low of 1638.18
(-15.86pts) as persistent selling was evident in Telco's and banking stocks
after investors reduce positions ahead of the US presidential Elections tonight
as well as China's National Congress that will happen on Thursday. Markets were
also cautious on doubts over Greece's ability to push through reforms. Market
breath continues to be negative, with losers outpacing gainers 396:273. Future
closed 1641.5 ( 4.13 pts discount) .
2) Heavyweights: PBBANK-1.42% RM15.32, AXIATA-1.95%
RM6.02, MAXIS-2.46% RM6.74, DIGI-1.17% RM5.09, BAT-2.6% RM59.84, GENTING+1.44%
RM9.16, MAYBANK+0.33% RM9.04, GENM+1.44% RM3.53
3) DBT: E&O 3.68mil @ RM1.64, ILB 2.5mil @ RM0.90
(5.3% discount)
4) Situational:
SKPETRO+6.27% RM2.88: Share price reached a high of
RM2.93 after it announced that it has entered into a non-binding MOU with
Seadrill Limited to integrate tender rig businesses of both parties. Upon
completion, SapuraKencana will 100% own a total of 21 rigs, including
Seadrill's 49% share of 5 rigs, currently held under JV with SKPETRO and newbuilds currently owned by Seadrill for an enterprise
value of US$2.9bn which includes US$363m remaining capex and US$800m existing
debt. A minimum US$350m will be financed by the issuance of new shares and the
remaining US$1.39b will be financed by an undecided mixture of debt, equity or
cash. The offer is expected to be binding by Jan 13.
5) PHARMANIAGA
9mths 09/2012 Tover +15% RM1.33bn Net +71% RM70.67m EPS59.2sen
The stronger set of numbers was attributable to its
Logistics and distribution division which registered a PBT of RM58.6m vs RM44m
YOY on higher concession sales value and improvement in efficiencies. Its push
into manufacturing also help this segment jump from RM12.8m in 2011 to RM40.5m
in 2012 after acquiring Idaman Pharma manf and improved productivity and
efficiency of existing plants. The 1st tranche of a novation agreement btw
Idaman Pharma and Pharmaniaga Logistics totallling RM30m was settled on 18
April with a balance of RM21.08m to be settled within a year.
The company will continue to grow its manufacturing arm
by venturing overseas and increase focus on R&D to develop a new range of
generic drugs. It declared an interim dividend of 10sen bringing payout
YTD to 25sen. Trading at 10.3x PE and a yield of 4.2% we rate it a long
term accumulate.
6) Market - KLCI to remain under selling pressure due to
the weakness in the plantation sector and current sell off in telcos. We remain
bullish for the short term and expect a stronger close to the year hence
continue to advocate a buy on weakness.
