1) KLCI rose for the 6th consecutive days closing at its
day's high on persistent buying of key heavyweights led by TENAGA, PPB while
regionals struggled paring its losses but remained in the red as Eurozone debt
situation continue to weigh the market sentiment. Market value traded surged to
RM2.9bn on month end closing activities with PCHEM, BURSA, MAXIS topping the
value traded list. Broader market turned negative with decliners edging gainers
343:375. Futures closed 1580.5 (parity).
2) Heavyweights: TENAGA+2.3% RM6.67, PPB+5.46% RM17.00,
MAYBANK+0.58% RM8.75, AXIATA+0.75% RM5.37, PBBANK+0.44% RM13.76, GENM-3.91%
RM3.69, PETGAS-1.94% RM17.20, YTL-2.65% RM1.84
3) DBT: SYF 27.1mil @ RM0.50 (10% PUC, 2.3% discount),
KURASIA 20mil @ RM0.60 (1.3% PUC), IJACOBS 12.2mil @ RM0.17 (10% PUC, 10%
discount)
4) Situationals:
GLOTEC-12.5% RM0.105: Globaltec made its debut on the
main market today topping the volume list with 150mil shares traded. Globatec
is a special purpose company to facilitate the merger of three listed entities,
namely Jotech, AIC and AutoV. IPO was priced at 10sen per share.
YHS+7.43% RM3.47: Company announced that its biggest
shareholder YHS (S) Pte Ltd is offering RM3.60 per share to take the company
private in a deal worth at RM552.6mil
5) MAXIS
1Q March 2012
Tover +4.5% RM2.23bn Net +6%
RM573m 7.6sen
In line with cons (f) RM2.33bn
The Group recorded a 4.5% or RM96 million increase in
revenue over the preceding year, contributed by primarily, Mobile services
contributing approximately 96% of the increase. Earnings grew 6% largerly due
to lower tax expenses and lower write-offs in property, plant and equipment
which more than compensate for a higher net finance costs, depreciation and amortisation.
Net finance costs were higher as a result of additional borrowings as the Group
move towards a more optimal capital structure. Depreciation and amortisation
were also higher as more investments were made in expanding the network and
more smart devices were made available in the market.
Non-voice revenue through higher sales of devices, mobile
internet and SMS usage coupled with higher wireless broadband revenue as a
result of a higher subscription continued to be the main growth driver as
subscribers totaled 12.645m (based on its new definition adopted from 1 January
2011, where subscriptions for reporting purposes that is more reflective of the
revenue generating base.) Blended monthly ARPU gained 3% to RM52.
The other main sector the company is concentrating its
resources on is Home services broadband. Home services revenue grew by RM4
million during the year due to new revenue streams from Home Wireless Internet
and Home Fibre Internet services which were launched in October 2011 and March
2011 respectively. Industry wide, new subscriptions are estimated to expand by
around 300,000 subscribers in 2012. The company declared an interim dividend of 8sen and is
on track to meet cons(f) yield of 6%. HOLD
6) Market - Trading direction is likely to remain
uncertain as we muddle along until we get more clarity on the immediate
problems in Greece and Spain. The KLCI will meet significant resistance around
the 1586 levels after out performing the region in the past few sessions.
