1) KLCI closed above 1600pts and near its day high (HI:
1602.05pts) supported by key heavyweights after strong Alcoa earnings bolstered
DOW overnight and ECB calming fears of possible debt crisis with its debt
purchasing plans. Index fell to a low of 1593.57pts (-3.6pts) after returning
from holiday but manage to clawback losses led by Tenaga+2.2% which rose ahead
of company's 3QFY12 earnings announcement. Market breadth was slightly negative
with losers edging gainers 366:360.
Futures closed 1593 (8 points discount).
2) Heavyweights: TENAGA+2.2% RM6.51, AXIATA+1.12% RM5.40,
SIME+0.31% RM9.88, UMW+1.23% RM7.42, PCHEM+0.3% RM6.73, AIRASIA+0.88% RM3.44,
CIMB-0.26% RM7.71, KLK-0.74% RM24.32
3) DBT: BJCORP 90.8mil @ RM0.93 (2.1% PUC)
4) Situationals:
SCOMI+3.7% RM0.28: News reported several Indian companies
are looking for a possible JV with Scomi to set up a monorail related
manufacturing plant in India. Group CEO Shah Hakim Zain also said listing its
india unit on the Bombay stock exchange was another option as Scomi expands its
footprint in the region.
MUIIND+4.3% RM0.245: Prior to market opening, MUIIND
announced that MUI Continental Insurance Berhad (MCI) had on 10 April 2012
made an application to Bank Negara Malaysia for its approval of the Proposed
Disposal comprising the insurance assets and liabilities of MCI to Tokio Marine
Insurans (M) Bhd, for a premium of RM180.23mil in accordance with the terms and
conditions set out in the agreement for the sale and purchase of assets and
liabilities, to be approved by BNM. The value of the insurance assets to be
transferred to TMIM shall be equal to the value of the insurance liabilities
assumed by TMIM as at the transfer date, to be determined.
5) TNB
1H Feb 2012 Tover
+14.7% RM17.3bn Net +76.2% RM2.59bn EPS 47.5sen Net RM1.32bn excl fuel cost compensation is 17.8% above
cons(f)RM2.24bn higher tover as a result of 4.1% growth in demand for
electricity in P.Msia. This was also followed by a 20.5% spike on operating
expense due to the gas shortage especially during the 1Q. This led to a 52.1@
jump in fuel cost in distillates and oil with EBITA margin dipping to 20.3% vs
26.2% yoy. Fuel cost compensation was recorded for the 1H totaling RM2.023bn
for the period from Jan 2010-Oct 2011. EBITA margins have recovered to 25.6% in
the 2Q due to volume recovery in gas but the company still recorded an
additional RM465m alternative fuel cost from Nov 2011-Feb 2012. This phenomenon
is expected to continue in the 2H as the volume of gas remains below prior
years. The company declared a dividend
of 5.09sen for the 1H.
Foreign shareholding has been on the steady climb
reaching a 8mth high of 11.4% in March, reflecting investor optimism in the
future from possibly lower capacity payments to 1st generation IIP players for
extension of their power plants and a new source of gas from a JV with
Thailand. BOW
6) Market - Immediate direction to still be guided by
events in Europe and US as retail players move to the sidelines ahead of GE.
