Subject: Market Roundup 29/02
FBM30 1569.65 +12.92 points (+0.83%) Volume 1,942mil Value 2,693mil
1) KLCI outperformed the region reaching a new YTD high of 1573.75
(+17.02pts) as investors snapped up core blues after US consumer
confidence beat expectations while factory output numbers in Japan and
Korea gained spurring investors to take on riskier assets. YTL+11% with
120mil shares traded after company saw it's weighting in MSCI increased.
Value traded surged pass RM2.5bn as overall broader market turned
positive with advancers outnumbering decliners 535:297. Futures closed
1573 (3.5 points premium).
(+17.02pts) as investors snapped up core blues after US consumer
confidence beat expectations while factory output numbers in Japan and
Korea gained spurring investors to take on riskier assets. YTL+11% with
120mil shares traded after company saw it's weighting in MSCI increased.
Value traded surged pass RM2.5bn as overall broader market turned
positive with advancers outnumbering decliners 535:297. Futures closed
1573 (3.5 points premium).
2) Heavyweights: YTL+10.76% RM1.75, SIME+1.25% RM9.69, AXIATA+1.37%,RM5.17, TENAGA+1.29% RM6.28, GENM+2.89% RM3.91, PETGAS+1.45% RM16.80,DIGI+0.75% RM4.02, PCHEM-1.47% RM6.70
3) DBT: YTL 14.2mil @ RM1.75 (1.4% PUC), SAAG 5mil @ RM0.075, HIBISCS,4mil @ RM1.78.
4) Situationals:
TSM+7.14% RM1.20: the Company received a letter from West River Capital Sdn Bhd, to acquire all of the business and undertaking, including all assets and liabilities of TSM for an aggregate consideration of RM159,238,500 equivalent to RM1.25 per share. West River Capital is a vehicle owned by TSM MD Datuk Lim Kheng Yew and executive director Lim Tze Thean.
5) Sime Darby: HY 12/11 Rev+20% RM22.b Net+42% RM2.18b EPS 36.2s Div 10s
Results 10% ahead of Cons RM3.93b
For 6-mths yoy, higher Rev was recorded from all divisions, led by Plantation +38%, Property +46%, Industrial +38%, Energy & Utilities +127% & Motor +11%. PBT for the period was higher by 39.9%. This was driven by Plantation +38% (higher average CPO prices of RM2872/ton vs RM2692/ton LY, coupled with higher FFB production +4.6%. However, the mid-steam & downstream operations continued to be adversely affected by negative gross margins, resulting in a loss of RM36m, Property +46% (from higher percentage of property development works completed ), Industrial +38%, Motor +11%, Energy & Utilities +127% & Healthcare +7%. Qoq, Revenue +2.9%, PBT +10.8%. PBT from Plantation -3.5% (lower average CPO selling price realized of RM2804/ton vs RM2946/ton in preceding quarter but mitigated by better performance from mid-stream & downstream activities), Property +119%, Energy & Utilities +258% (recognition of deferred revenue of RM99.4m), Industrial -10% & Motor -1%. Ahead, the deterioration of the Eurozone debt crisis & global economic slowdown have raised significant uncertainties & downside risks. The outlook for Plantation remain positive. Group announced an interim dividend of 10s per share. However, the GO risks surrounding E&O's acquisition remains a concern. Sime is trading at PER of 13-14x for FY06/16 - Core Holding.
6) Mkt: the next resistance for the KLCI is 1580-1600 level after breaking out from the recent resistance. We would advocate to use this opportunity to take profit into strength.
