FBM30 1575.08
-9.24points (-0.58%) Volume
977.9mil Value 1,119.7mil
1) KLCI fell sharply after midday slipping below 1580pts
and ended at day's low after regionals were battered on Greece's continued
political deadlock and signs of China's economy slowing. Local market was also
affected by speculations parliament could be dissolve by today. Market volume
failed to reach 1bn mark as broader market was negative with decliners trashing
gainers 694:158. Futures closed 1562 (13 points discount).
2) Heavyweights: CIMB-1.83% RM7.49, DIGI-0.5% RM3.99,
YTLPOWR-4.8% RM1.58, BAT-3% RM51.80, SIME-0.51% RM9.75, GENTING-0.57% RM10.44,
GENM-1.33% RM3.71, IOICORP-0.58% RM5.18
3) DBT: GPRO 17mil @ RM0.05 (6.8% PUC, 54.5% discount),
DIJACOR 10mil @ RM1.20 (9% premium), GLOMAC 3mil @ RM0.80
4) Situationals:
KASSET+6.99% RM7.50: Share price rose after proposing to
inject Mid Valley Megamall and Gardens Mall into IGB REIT for
RM4.6bn. The deisposal would be satisfied via issuance of 3.4bn units in IGB
REIT. It has also proposed capital reduction and repayment by reducing its par
value from RM1.00 to RM0.02.
MAYBULK-3.59% RM1.61: share price retreated and ended
day's low after announcing plans to scale back dividends in order to conserve
cash to acquire vessels. Company believes current weak markets for vessels
provides opportunity to find great bargains.
5) LATEXX
1Q Mar 2012
Tover +4.5% RM99m Net -34.3%
RM8.35m EPS 3.75sen
37% below cons(f) RM53m The increase in the Group's revenue in the
current quarter was attributed to an increase of demand for gloves. On the
other hand, reduction of profit before tax margin from 15.7% to 11.73% on
year-on-year basis was mainly due to more competitive pricing in the industry.
EBITA margin for 1Q 2012 was also lower by 0.5% to 16.9% vs 4Q 2011.
The demand growth for examination gloves has remained at
8% to 9% annually. Higher growth is expected on the demand of nitrile gloves.
The current latex prices are comparatively lower than the previous quarters; on
the contrary, current nitrile prices are higher.
The expanded gloves production capacity by the industry,
particularly the nitrile production capacity is expected to lead to a more
competitive pricing that will result to a slight erosion of profit margin. We remain cautious over the sector as competition is
continuing to erode margins even after cost of raw materials have stabilized.
6) Markets - current weakness to persist with possibility
of Greece exiting the Euro continuing to dominate headlines. The current
situation may drag on for months with sovereign bond yields of Span and Italy
continuing to rise to unsustainable levels. KLCI next support level seen at
1562pts then a stronger level at 1527pts.
