FBMKLCI
1783.47 +7.31 pts (+0.41%) Volume
2.669m Value RM2.780b
1) The KLCI bucked the trend to extend its gains after
Wallstreet spurred to an all-time high behind better home prices and consumer
confidence. The regional market however were lower led by HSI-1.6% and STI-1.1%
after IMF downgraded China's growth outlook on concerns about the recovery in
the world's 2nd largest economy. In the local market, rotational of lower
liners saw significant gains in counters such as KIMLUN +9.8%, MAHSING+4.3%,
PERDANA +8.0%, ALAM +5.0%. Market
breadth was skewed towards positive with gainers leading over losers 527 : 342.
Futures closed 1776.5 (6.5 pts discount)
2) Heavyweights : PBBANK +1.0% RM16.94, IOICORP +1.15%
RM5.27, HLBANK +2.5% RM14.36, GENTING+0.77% RM10.38, MAYBANK +0.39% 10.14, DIGI
+0.85% RM4.71, AXIATA +0.89% RM6.75, MAXIS +0.58% RM6.87
3) DBT : IFCAMSC 11.76mil @ RM0.08 (2.6% PUC), ENGTEX
5mil @ RM0.95 (2.52% PUC 4.5% discount), TGOFFS 5mil @ RM0.54 (1.7% PUC, 27.5%
discount).
4) Situational;
REDTONE +17.75 RM0.63 : News reported REDTone
International Bhd would be partnering with Huawei, Europe's Media Broadcast
GmbH and PwC to bid for the digital terrestrial TV broadcast (DTTB) which is
expected to roll out nationwide come 2015.
The DTTB bid will be undertaken via its unit REDtone Network Sdn Bhd,
whose majority shareholder is the Johor royal family with a 51% stake while
REDtone has the remaining 49% share REDtone Network is one of three shortlisted
contenders for the DTTB tender and is expected to submit a detailed business
plan this 3 June.
5) MAS Q1 03/13
Rev+14% RM3.55b Net loss
RM278.8m EPS -8.34s
Results trails cons FY13 loss of RM14.9m
The Group recorded loss after tax of RM278.8 million for
the first quarter ended 31 March 2013 vs RM171.8 million in the same quarter
last year. The loss after tax is inclusive of unrealised foreign exchange loss
of RM21.3 million (Q 31 March 2012 : RM199.6 million gain), finance costs of
RM99.3 million (Q 31 March 2012 : RM44.6 million) and fair value change of
derivative of RM4.3 million gain (Q31 March 2012 : RM23.8 million loss). At the
operating level, MAS recorded a 46% lower operating loss of RM165.3 million as
compared to RM306.9 million operating loss for the same quarter in previous year.
Operating revenue +11% to RM3,388.9m due to increase in Airline revenue by 10%
to RM3,241.8 million and Cargo revenue by 4% to RM449.1 million. Passenger
traffic +17% against a 11% increase in capacity and seat factor increased by
3.6 percentage points to 76.6%. However, passenger yield declined by 5%.
Total operating expenditure has increased to RM3,711.1
million compared to the same quarter last year which consists of 9% and 5%
increase in Airline Operations and Cargo Services respectively. For both, Airline
Operations and Cargo Services, high fuel costs of average RM135 per barrel
resulted in additional 6% and 12% increase in fuel costs incurred during the
quarter, respectively. With the RM3b rights issue, we think MAS' operations are
improving and that the market has been quite positive on the national carrier's
turnaround efforts. MAS is expected to enjoy better loads and cost efficiency
with its new aircraft line up and route cuts, in addition lower interest from
funds raised from its rights which we expect will help support its FY13-14
bottom-lines, The stock could see some weakness from the new right shares begin
trading on the 5th June.
6) Market - Market momentum remains strong with
rotational play particularly in O&G names and property related stocks.
