1) KLCI pared its earlier gains as investors continue to remain cautious ahead of key Spainish and French debt auctions. Regionals was firmer led by HSI+1% on speculation of China easing its monetary policies. Market continued to be lightly traded with politically link companies coming under selling pressures led by UEMLAND-4.5%, MRCB-2.8% and CIMB-0.5%.
Broader market was weaker with decliners outpacing
gainers 429:281. Futures closed 1593 (3.6 points discount).
2) Heavyweights: CIMB-0.52% RM7.63, KLK-1.65% RM23.80,
MAYBANK-0.34% RM8.84, PBBANK-0.3% RM12.46, UEMLAND-4.6% RM2.08, GENTING+0.92%
RM10.92, TENAGA+0.61% RM6.59, GENM+1.05% RM3.85
3) DBT: COMPUGT 16.5mil @ RM0.075 (16% discount), PATIMAS
12mil @ RM0.07 (1.5% PUC), GENETEC 5mil @ RM0.20 (11% discount)
4) Situationals:
CENSOF+5.88% RM0.45: CENSOF's wholly owned subsidiary has
secured contracts worth a total RM5.6mil from the Inland Revenue
Board. The first RM3mil contract is for the maintenance of its accounting
system from 2012 until 2014 while its second RM2.6mil contract is to upgrade
and replace equipment for the system.
5) CMMT
1Q Mar 2012 Tover
+35.5% RM71.4m Net +9.5% RM24.4m EPS 2
sen In line with cons (f) RM140m Higher turnover due to full contribution of
Gurney Plaza Extension (acq in 28/3/2011) and East Coast Mall (acq 14/11/2011). It also managed to attain higher
rental rates from new and renewed leases as rental revisions gained 5.6% over
the preceding rentals. overall occupancy remains high at 98.3%. Gearing ratio
of 28.8% allows the company sufficient margin to embark on further acquisitions
is the opportunity arises as their borrowings of RM820m are 69% in fixed rates
and 31% floating at an average funding cost of 4.7%.
DPU this quarter amounted to 2.09sen and on annualized
basis, represents an attractive yield of 6.05% based on the closing price of
RM1.38. HOLD.
6) Market - Two tier market persists as 2nd line mid caps
continue to diverge lower from big caps as a result of the cautious stance
taken by investors. This phenomenon is likely to continue until the GE is
called.