FBM30 1556.66, -3.86 points (-0.25%), Volume 1,951mil, Value 2,109mil
1) KLCI was weaker inline with the region as investors turned cautious after oil prices reached nine months high and European services and manufacturing output shrank in February stoking fears of a global economic slowdown. Index was only marginally lower supported by AXIATA+1.6% (strong 4Q and higher dividends) and Tenaga+1.3% but broader market saw heavy selling with losers thumping advancers 689:217. Futures closed 1557.5 (1 point premium).
2) Heavyweights: CIMB-1.1% RM7.16, GENTING-1.11% RM10.72, AIRASIA-1.92% RM3.58, YTL-2.07% RM1.42, AXIATA+1.6% RM5.09, TENAGA+1.31% RM6.19, TM+0.8% RM5.07
3) DBT: MTOUCHE 20m @ RM0.35 (8.8% PUC, 14.6% discount), JCY 12mil @ RM1.20
4) Situationals:
SNTORIA-9.77% RM0.785: Sentoria Group Bhd, a property developer, fell on its first day of trading in the main market as share price fell to RM0.785 with 34million shares traded. SNTORIA's IPO price was RM0.87 and is the first company to list on Bursa in 2012.
5) IOICORP
1H Dec 2011 Tover +11% RM8.3bn Net -19% RM864.8m EPS 13sen
5.2% above cons(f) RM2.1bn * excl forex trans loss
Results were once again driven by the plantation sector which achieved operating profits of RM1.06bn, +36.8% on the back of higher realized CPO, RM3094/MT and higher FFB pdn of 1.876m MT. Yield improved 10% to 13.45 tns per mature hec.
Property development saw op profits fall 11% to RM249m on lower launches. Resource based manufacturing operating profits gained marginally by 5% despite increase in sales but was moderated by lower margins achieved for the specialty fats and refinery sub segments.
Trading at above sector and market PE valuations, we prefer Sime as IOIC immediate FFB pdn is likely to be restricted by the high mature hec of its planted areas which totals 88%.
6) Market - Current bout of profit taking not unexpected after markets in general having posted significant gains YTD. Stock to accum on weakness incl uemland, pos, mrcb, keuro