FBM30 1564.75 -14.25 points (-0.90%) Volume 1,268mil Value 1,717mil
1) KLCI succumbed to profit taking today, as recent rally came to a halt with heavyweights led by PCHEM and SIME coming under selling pressure after China reported lower than forecasted growth in Feb exports and biggest trade deficit in 22 years. Malaysia's industrial production for Jan also disappointed gaining 0.2% yoy against estimates which had forecasted a gain of 0.9%. This prompted profit taking from investors with index sliding over the day to close at day's low. Broader market was negative with decliners thumping gainers 516:260. Futures closed 1565 (0.25point premium).
2) Heavyweights: PCHEM-4.09% RM6.56, SIME-1.62% RM9.69, AXIATA-1.75% RM5.04, MAYBANK-1.03% RM8.65, TM-2.49% RM5.10, IOICORP-1.12% RM5.32, CIMB-0.68% RM7.29, TENAGA+0.94% RM6.45
3) DBT: MPHB 42mil @ RM2.85 (2.9% PUC), PARKSON 4mil @ RM5.60
4) Situationals:
AIRASIA-1.1% RM3.59: Airasia X will suspend flights to and from NZ at the end of May due to high jet fuel prices which made the services not profitable. A NZ based online news portal reported that Airasia X could be slapped with a penalty should it pull out of the KL-Christchurch-KL route.
5) KIM LUN
Announced that its wholly-owned subsidiary, Kimlun Sdn Bhd had on today accepted the award of 2 contracts with collective contract value of RM151.6m. The first is the construction of service apartements for SP Setia at Bukit Indah, Johor, valued at RM114.7m. The second is to build 244 homes in Johor Bahry valued at RM36.9m for Keck Seng with an est completion date of Sept 2013.
These contracts will further boost their already impressive order book of RM1.5bn. One of the top smaller contractors trading at only 7x current year PE and a reasonable projected yield of 4%. BOW
6) Markets - Heavy profit taking today could signal further weakness ahead for the KLCI after breaking below its recent low of 1572pts. A failure to reclaim the 1567pts level in the short term could see the index settle lower at the 1550pts levels.
