FBM30 1559.04 +0.27 points (+0.02%) Volume : 1,642mil Value : 1,634mil
1) KLCI ended flat paring its morning gains as investors sentiment turned cautious about the impact of high oil prices on the global economy and warning by IMF chief Christine Lagarde that the world economy is still in "the danger zone". Investors also stayed on the sidelines as they wait to see if Germany is willing to provide further firewall to the Eurozone rescue funds as requested by G20 leaders beforeG20 steps in and provide the required support. Index was held up byfinancials+0.37% while the broader market was negative with declinersoutpacing gainers 455:327. Futures closed 1554.5 (4.5 points discount).
2) Heavyweights: CIMB+1.13% RM7.14, YTL+2.67% RM1.54, TM+1.38% RM5.15,AMMB+1.33% RM6.11, GENM-1.55% RM3.81, IOICORP-0.55% RM5.40, PBBANK-0.3% RM13.62, SIME-0.3% RM9.57
3) DBT: ASIABIO 16.5mil @ RM0.05 (4.3% PUC, 28.5% discount), JCY 12mil @ RM1.24, ENVAIR 6.7mil @ RM0.20 (5.6% PUC, 34.4% discount)
4) Situationals:
DRBHCOM-1.95% RM2.52: Share price was weaker in the afternoon session after the company's AA-/S sukuk rating on its RM1.8bn Islamic MTN has been changed to negative by MARC due to the potential weakening of DRBHCOM's near to intermediate term financial profile following DRBHCOM's debt funded acquisition of Proton.
5) CIMB
FYE Dec 2011 Tover +2.1% RM12.12bn Net +15.1% RM4.03bn EPS 54.2sen 2.3% above cons(f) RM3.94bn
Higher earnings was recorded due to lower credit losses and better cost management. Net interest income was largely flat at RM6.67bn while non interest income fell 5% to RM3.72bn.Interest expense jumped 31.5% leading to NIM falling from 3.34% to 3.12%. Islamic banking continued to grow gaining 10.5% to RM1.47bn. In a year of consolidation, overheads were duced by 9.5% to RM1.72bn. LLP recorded fell significantly from RM607.2m to RM487.3m.
The group also recorded a gain on disposal of net assets, RM250m. Segmental contribution continued to be led by CIMB Niaga 29%, followed by Malaysian consumer banking 26%, Treasury and Investments 27%, CIB 14%, Group asset management and insurance 2% and CIMB Thai 2%.Overall gross loans +14.3% led by CIMB Niaga +23.4% while total deposits +11.1%.
Cost to income ratio improved to 54.7%. It achieved an overall ROE of 16.4%, below internal targets of 17%.It declared a final dividend of 10sen, bringing full year payout to 40.6%, the lower end of earlier guidance between 40-60%.The group anticipates similar numbers in FY 2012 with internal forecasts of 16.4% ROE, 16% loan growth and 16% deposit growth.
CIMB is currently in ongoing discussions to acquire a stake in Bank of Commerce, the 15Th largest Bank in Philippines. HOLD
6) Market - Resumption of recent uptrend continues to hinge on the recover in the US economy and thus a breakout of the DJIA above the 13000pts levels.