1) KLCI was firmer, rising in tandem with the regionals
on better US earnings while Spain sold more bills than planned easing
investors' fears on eurozone debt crisis. Index reached a high of
1602.34
(+6.15pts) but ended near its day low on lack of follow
through buying of key heavyweights. Properties-0.56% bucked the trend with
losses seen in UEMLAND-1.8%, SPSETIA-1.3% and IGB-1.4%. Market breadth was
positive with gainers leading decliners 394:350. Futures closed 1594 (5 points
discount).
2) Heavyweights: CIMB+0.92% RM7.67, MAYBANK+0.68% RM8.87,
TENAGA+0.61% RM6.55, IOICORP+0.56% RM5.37, BAT+1.36% RM55.20, GENTING-0.92%
RM10.82, KLK-0.49% RM24.20
3) DBT: DAYA 5mil @ RM0.20, FABER 1.5mil @ RM1.61
4) Situationals:
WIJAYA+2.08% RM0.735: Company is in the midst of
negotiating with a few interested parties in order to commence the timber
extraction and logging activities and thereafter, the cultivation of oil palm
in the District of Jair, Boven Digoel Regency, Papua Province, Republic of
Indonesia. However, all the negotiations are still in the very preliminary
stage and nothing has been concluded yet.
5) PBBank: Q1 03/12 Rev+13% RM3.37b; Net+6% RM940.8m; EPS
26.86s Results in line with cons RM3.72b
For Q1 yoy, the improved Net was due to higher net
interest & finance income +5.5%, higher net fee/comm income +5.1% while
impairment on loans -53.8% ( from improved asset quality). These were partially
offset by higher operating expenses +10.2%, which were mainly due to increase
in personnel costs & establishment costs resulting from higher business
volume. On an annualized basis, gross loans +12.6% ( mainly arising from property
financing, passenger vehicles & lending to SMEs), total Deposit +14.8%, while impaired loan ratio improved to 0.8% from
0.9% at the end
of 2011. Loan loss coverage ratio remain high at 117% (
vs industry average of 97%). On capital adequacy, Core Capital ratio stands at
10.3% & RWCR at 14.4%.
Segmental pretax yoy - Retail ops +11.8%, HP +4.1%,
Corporate lending +21%, Treasury & Capital market +23%, Investment
banking +2.3%, Fund Management +12.9%, Overseas ops +0.3%. Qoq, pretax +2.8%
while Net +3%. These were mainly due to lower loan impairment
allowances, partially offset by higher operating expenses; Core Holding.
6)Market - mixed trading with good support for core blues
while politically-linked stocks continue to drift as players focus on penny stocks.