FBMKLCI
1614.02pts +10.66pts
(+0.66%) Volume 1.828b Value RM 2.022b
1) The KLCI clawed back earlier losses to close in the
green amid bluechip basket buying at auction period despite the weaker US
market overnight as investors weighed improving economic data against the
likeliness of a rate hike next week. Regions were mostly lower led by HSI &
SHCOMP fell -2.57% & -1.39% respectively even after Chinese Premier Li
Keqiang reassured that the country's economic growth is on track, NIKKEI
-2.51%, ASX -2.42%, STI -1.18%. The lagging PLANTATION +1.05% index gained the most grounds today
led by IOICORP +3.07%, GENP +1.11%, IJMPLNT +2.99% as CPO prices gained. Market
breadth was negative as losers beat gainers by 422 : 354. Futures closed at
1589pts (25pts discount).
2) Heavyweights : GENTING +6.3% RM7.37, CIMB +2.72%
RM4.90, IOICORP +3.07% RM4.02, GENM +3.65% RM4.25, BAT +4.23% RM63.58, MISC
+1.19% RM8.50, MAYBANK -0.81% RM8.55, PBBANK -0.33% RM18.02.
3) DBT: MAYBANK 51.45mil @ RM8.51, SANICHI 5mil @
RM0.065, SCOMIES 5mil @ RM0.28.
4) Situational:-
GUH +0.52% RM0.955 - GUH Holdings Bhd's unit GUH Realty
Sdn Bhd has proposed to acquire two pieces of land in Seberang Perai, Penang
for RM22.6m. The purchase consideration will be financed through bank
borrowing and internally generated
funds, the company said. It said the land totalled 2.88ha would be acquired
from Leader Holdings Sdn Bhd and Thow Gooi Chee. The two pieces of land were
strategically located in South Seberang Perai District where various government
projects, including the Batu Kawan Industrial Park had been initiated
5) BJAUTO : 1Q 07/15
Rev +1% RM512.5m Net -7% RM52.2m
EPS 4.58s Div 2.25s
Results trails,
making up 21% of cons RM250.7m
For 1Q, both local & Philippines operations continued
to record double digit growth in sales volume. However, revenue was only marginally
higher due to unfavorable sales mix, where the competitively priced Mazda 2 and
3 models were the main contributors to the increase in sales volume. Sales
volume was also driven by the popular CX-5 model. In addition, the
implementation of GST on April 1 has also impacted group revenue. The lower net
profit was mainly attributable to higher spending on advertising &
promotional expenses. Qoq, revenue was +21% while PBT was -5%. Higher revenue
was largely due to higher sales volume in the local & Philippines market.
PBT was lower due to compressed gross profit margin caused by intense
competition. Ahead, conditions are expected to be challenging as local &
global economic uncertainties have caused Ringgit to depreciate substantially
against the Japanese Yen & other major currencies. This will drive up
product cost & price competitiveness of Mazda vehicles in Malaysia; Despite
the challenging sentiments, we see Berjaya Auto to be the least affected
automotive player, with the macroeconomic headwinds to be buffered by its
targeted customer base (middle to high income groups are able to weather rising
cost of living better) and attractive newmodel such as CX-3 SUV and MX-5.
However, margins will remain under pressure-
Trim.
6) Market : Rising concerns over China's growth
trajectory & weak MYR will continue to dampen investors' sentiment. With
the flattish showing of the technical indicators, the FBMKLCI may continue to
consolidate further with downside-bias between 1560 -1620 points this week.
