FBM30 1516.81, -0.57 points (-0.04%), Volume 1,936mil, Value 1,618mil
1) Index gave up early gains as it drifted south throughout the day, bucking the positive regional trendsas investors chose to stay sidelined ahead of long wkend. KLCI closed relatively unchanged as some buying during auction period on TM+1.5%, MMCCORP+1.5%, YTL+0.7%, BJToto +2% sent the index to close off-lows. TECH (+2.6%) sector was the biggest gainer (JCY+2.7%, UNISEM+5.6%, MPI+12.9%) on positive outlook by the analysts, amid hefty gains in active lower liner stocks: DBE+22.7%, TMS+155.6%, NEXTNAT+9.1%, INGENS+6.3%. Market breadth was flattish with mixed bias: gainers at parity with losers 378:370. Futures closed off lows 1522 (5 points premium).
2) Heavyweights: GENTING-1.6% RM10.82, MAYBANK-1% RM8.20, AXIATA-0.6% RM4.84, AIRASIA-0.5% RM3.63, KLK-0.2% RM24.78, IOICORP+0.7% RM5.39, TM+1.5% RM4.82, PCHEM+0.6% RM6.68, MAXIS+0.7% RM5.63.
3) DBT: IPMUDA 5.7mil @ RM0.54, OLDTOWN 4.8mil @ RM1.25, MASTEEL 3mil @ RM1.13.
4) Situationals:
Smartag+6% RM0.265: Shares rose after company said it will provide its Smartrack Technology for Brunei's Halal traceability project, enabling consumers to trace halal products in the sultanate. Smartag said it had inked a memorandum of collaboration with John Harith Technology Sdn Bhd where the latter would use its Smartrack solutions for the project. Under the project, John Harith will be developing the halal traceability software application on top of Smartrack, thus making Smartrack the engine for the project.
HELP+2.7% RM1.54: Shares saw gains in thin volume after it announced plans to set up a private primary and secondary international school in Subang but concerns about the growing competition from other players restrained strong buying interest. HELP announced it was expanding its education business which would see it investing RM20mil to set up the school with the capacity for more than 3,000 students. The first phase will open in September 2012 with an initial intake of 500 to 600 students.
5) Digi: FY 12/11 Rev+10% RM5.96b Net+6% RM1.25b EPS 16.13s Div 17.56s
Rev in-line, Net trails cons RM1.45b by 14%, Dividend in-line.
For Q4 yoy, Rev +8.1% achieved predominantly by growth in service revenue while handset sales was slightly lower. Service revenue came on the back of sequential growth in voice (+0.63% v 3Q +2%)& data (+5% v 3Q +10.4%)revenue.The slowdown in mobile broadband was due to a conscious decision to control growth & reduce excess usage of the network. Qoq PAT +35% from tax incentive on mobile broadband network facilities whilst EBITDA +2.8% qoq to RM728m & EBITDA margin rose to 47.1% (Q3: 46.6%). Key drivers were higher revenue & continued good cost management. Digi added 303k new customers in Q4, bringing total customers to 9.9m (of which 5.2m are mobile internet users). Group declared a 4th dividend of net 6.5s per share, taking total dividend for year to 17.5s ( in line with cons estm of 17.8s), yield 4.5%.
Management guidance for 2012: mid-high single digit rev growth, capex RM700-750m (2011 RM610m)
Comments: Hold-prefer TM as trades at cheaper EV/EBITDA of 5.6x (v Digi's EV/EBITDA 11x) with more attractive div yield 5.6%
6) Mkt - continue with muted trading amidst a tight range with 1500pts providing support. External factors will provide lead: Spain and France auctioning 1st LT bonds tonight amidst stabilization in yields since S&P downgrade and talks of China easing lending curbs on larger banks and weighing plans to relax capital requirements to provide stability in mkts.