News Bits | 22 April 2013

IDEAS OF THE DAY (SEE SEPARATE REPORTS FOR DETAILS)

 

*        Sector Update: Media

*        Quick Bites: GAMUDA, MISC, WCT, UZMA

*        On Our Portfolio: All Eyes on the Election Campaign

*        On Our Technical Watch: Weekly Technical

 

 

 

NEWS HIGHLIGHTS

 

*        Petronas Dagangan gets sukuk approval

*        CIMB Thai Q1 net profit up 11.4%

*        Up to EPF to decide RHBCap privatisation, says group MD

*        Kamdar to sell land, building for RM26.0m

*        Datasonic awarded RM15.0m KDN service contract

*        Johan in talks to sell charge and credit card ops

 

FOREIGN NEWS HIGHLIGHTS

 

*        Sprint/SoftBank asks FCC to go ahead with deal review

*        Nestle's Nespresso Growth Hit by Swiss Contender Migros

 

 

ECONOMIC NEWS HIGHLIGHTS (MACRO BITS)

 

Global

 

*        IMF To Boost Oversight Of Bank Stimulus

 

Asia Pacific

 

*        G-20 Eyes Stimulus Fallout Even As Japan Bond Buying Praised

*        Japan Invited To Join TPP Trade Talks

*        PBOC's Zhou Says Slower Growth Needed For Restructuring

*        Australia Sees Wider Deficit As High Currency Hits Revenue

 

North America

 

*        Dealers Say No End To QE In 2013 As Hatzius Sees 2016 Rate Rise

*        Carney Says Next Canada Rate Move Needs Above 2% Growth

 

Europe

 

*        Greeks Have Lost A Third Of Their Disposable Income

 

Currencies

 

*        Dollar Gains Vs. Yen After G-20 Statement

 

Commodities

 

*        Oil Rebound After Week's Big Sell-Off

*        Gold Posts 5% Weekly Loss, Outlook Seen Volatile

 

Market Roundup | 19 April 2013

FBMKLCI  1706.28 +0.02pts (+0.00%)  Volume  779.79mil  Value RM1,668mil

 

1) KLCI had another lacklustre trading day despite seeing regionals led by HK+2.3% and SHCOMP+2.1% rebounding on hopes China's government may widen yuan's trading band. Index failed to hold its morning gains touching a low of 1702.60 (-3.66pts) before recovering to edge positive at close on buying interest in CIMB, Maybank and Genting. Market breadth was negative with decliners leading gainers 398:269. Futures closed 1705pts (1.2pts discount).

 

2) Heavyweights: IOICORP-1.77% RM5.00, TENAGA-0.63% RM7.90, GENM-1.08% RM3.66, ASTRO-1.37% RM2.87, CIMB+0.91% RM7.77, GENTING+1.19% RM10.20, MAYBANK+0.52% RM9.70, HLFG+2% RM15.34

 

3) DBT: GRANFLO 20.74mil @ RM0.22 (6.49% PUC), COMPUGT 13.53mil @ RM0.078

 

4) Situationals:

 

EFFICEN-3.85% RM0.125: The memorandum of understanding (MoU) for a proposed collaboration between EFFICIENT E-SOLUTIONS BHD and Singapore Post Ltd (SingPost) for data and document management services in Indonesia was mutually terminated yesterday. In an announcement to Bursa Malaysia, Efficient E-Solutions said both parties were unable to identify any business opportunities or conclude any potential investors or business partners in Indonesia.

 

 

5)Uzma Bhd: The Board of Directors of Uzma Berhad announce that Uzma, through its subsidiary company Malaysian Energy Chemical & Services Sdn. Bhd, received on 18 April 2013 a Letter of Award from ExxonMobil Exploration and Production Malaysia Inc for the provision of oilfield chemicals and associated services.  The Contract period is for 5 years (primary term) from 1 April 2013 to 31 March 2018 with an extension option of 2 years. The value for the primary term is estimated at RM238 million. The award of the Contract will have no effect on the issued and paid-up capital of the Company and is expected to contribute positively to the Uzma group's earnings and enhance net assets per share for the financial year ending 31 December 2013; +ve. We are optimistic that UZMA will be able to deliver a sterling FY13 full-year results based on the higher units of UzmaPres delivered and the growth in its wireline and well-testing divisions. We understand that the eighth unit of UzmAPRES has already been deployed.

 

6) Market: trading will likely continued to be 2-tiered with the index stocks supported while profit-taking persists on recent market volume leaders and lower liners. Market players will also be tracking tomorrow nomination day closely for leads to next week trading.

 

Morning Calls | 5 March 2013

FLOWS

Tuesday, 5 March, 2013

BUY

DIGI, CIMB, TUNEINS

SELL

SIME, MPHB, TIMECOM

STOCK ALERT

STOCK NAME

DATE

PRICE

BUY/SELL

TARGET PRICE

E&O(3417)

5/3/2013

RM1.57

ACCUMULATE

RM1.82

in view of recent interest in property names esp IDR-linked ones, E&O has been largely resilient as it hovers arnd its technical support of RM1.52 or its 200D SMA lvl. Recent filings show long foreign funds have been accum as well as GK Goh (who sold to Sime earlier) has been buying back at current lvls. Co expects to launch RM2.5bn new properties this year concentrated on new growth areas in IDR and London besides its core staple Pg and KL vicinity eg Andaman Block 3, Medini Integrated Wellness Capital and Princess House in prime London area. Possible rerating catalyst should the much talked about M&A or GO by Sime Darby happen. Accumulate. (NL)

IJMLAND(5215)

5/3/2013

RM2.15

BUY

RM2.62

stk has been languishing at current lvls looking to break above its 200D SMA after falling from its recent high of RM2.72. Comfortable to achieve its sales target of of RM1.5bn for 2013 as 9mth13 chalked up RM1.4bn in sales driven mainly by Johor (Nusa Duta), Light Collection III, Seri Riana and S2 Centrio, Wangsa Maju.  Its new RM1.7bn sales target for 2014 seems achievable given its new launch of Sanctuary Garden@Bkt Mertajam (estimated GDV of RM100-150m) and the widely anticipated launch of Bandar Rimbayu following its Ph 1 launch which was fully booked. Buy            (NL)

Calls for FEB WEEK 3/4

STOCK

Initiation Dates

Initiation price

BUY/SELL

TARGET PRICE

LAST PRICE

% Change since Initiated

AMFIRST(5120)

25/2/2013

RM1.06

Defensive BUY

RM1.10

RM1.06

0.0%

AZRB(7078)

25/2/2013

RM0.69

TRIM

-

RM0.705

+2.17%

AMBANK(1015)

26/2/2013

RM6.29

ACCUMULATE

RM6.50

RM6.30

+0.15%

TM(4863)

26/2/2013

RM5.32

ACCUMULATE

RM6.00

RM5.30

-0.37%

UZMA(7250)

27/2/2013

RM1.65

Trading BUY

RM2.00

RM1.60

-3%

BSTEAD(2771)

27/2/2013

RM4.75

ACCUMULATE

RM5.20

RM4.82

+1.47%

SCOMI(7158)

28/2/2013

RM0.315

BUY

RM0.37

RM0.315

+0.00%

PUNCAK(6807)

28/2/2013

RM1.35

Switch

RM1.60

RM1.35

+0.00%

MUDAJYA(5085)

1/3/2013

RM2.45

ACCUMULATE

RM2.90

RM2.43

-0.82%

GAMUDA(5398WD)

1/3/2013

RM1.10

BUY

RM1.30

RM1.16

+5.45%