FBM30 1513.55, -7.35 points (-0.48%), Volume 2,307.5mil, Value 1,841.5mil
1) KLCI gave away morning gains with losses accelerating after midday as investors took profits ahead of European summit on the region's debt crisis and after the U.S. economy expanded less than forecasted. China also failed to deliver a forecasted reduction in bank reserve requirements. Selling pressure of GENTING, TENAGA, IOICORP after midday saw index dropping and closed near its low of 1512.03 (-8.87pts). Market breadth managed to stay positive with gainers leading losers 460:387. Futures closed 1502 (11.5 points discount).
2) Heavyweights: GENTING-2.33% RM10.90, TENAGA-2.13% RM5.97, IOICORP-1.28% RM5.40, MAXIS-2.46% RM5.56, HLBANK-1.71% RM11.50, YTL-2% RM1.47, PBBANK+0.6% RM13.52, CIMB+0.58% RM6.89
3) DBT: MYEG 20mil @ RM0.65 (3.3% PUC), PROTON 5mil @ RM5.40, AIRASIA 5mil @ RM3.57.
4) Situationals:
MAYBULK-13.2% RM2.30: Maybulk which has risen 72% ytd plunged 13% after the company said it is not aware of any reasons or any corporate exercise that may have contributed to the increase in share price and high trading volume of Maybulk shares in response to Bursa UMA query.
E&O+4.3% RM1.70: Share price reached RM1.75, near its highest level (RM1.78) on new revelations stemming from an online portal relating to Sime Darby's acquisition of a 30% stake in the company.
5) PBB: FY12/11 Rev+16% RM12.8b Net+14% RM3.48b EPS 99.5s Div 48s, Results in line with cons RM3.45b
For 12 months yoy, the higher Net was mainly due to higher net interest & net income from Islamic banking +8.6%, while net fee/comm income +8.4%. In addition, impairment allowances on loans had shown a drop of 9.9%, despite the 1.5% collection impairment allowances set aside for the strong loan growth. These were partially offset by the higher other operating expenses +5.2%. Total loans grew by 13.5% ( mainly arising from property financing, passenger vehicles & lending to SMEs), total deposit +13.3%, impaired loan ratio further improved to 0.9% from 1.1% LY. The group's capital position remained healthy, with tier-1 capital & RWCR at 10.1% & 15.3% respectively. PBT by operating segments - Retail ops +17.5%, HP -5.5% ( lower interest margin & higher loan impairment allowances), Corporate lending +16.3%, Treasury & Capital market +20%, Investment bank +2%, Fund management +17.5% & Overseas ops -4.8% (foreign exchange movement & lower net interest income). Qoq, PBT -2%, Net -2.4%. These were mainly due to certain loan recoveries in the preceding quarter which were non-recurring in nature. Group declared a 2nd interim dividend of 28s, bringing total dividend for FY12/2011 to 48sen or 48% net profits (10% lower than cons 53.1s).
The bank's numbers are indicative of an overall industry slowdown with lower loan growth and contracting margins. Prefer for CIMB for core bank exposure.
6) Market - Range bound on index with interest remaining on situational mid caps, Trading buy on MMC, an under performing company under the Syed Mokhtar stable with short term catalyst possibly coming from the listing of subsidiary, Gas Malaysia.