Tuesday, May 15, 2012

Market Roundup | 15 May 2012

FBM30 1561.07   -14.01points (-0.8)  Volume 1,121mil     Value 1,645mil

1) KLCI tanked in the morning reaching a low of 1559.01 (-16.07pts) following a weaker DOW on worries Greece could be leaving the Euro union while Moody downgraded Italian banks. Index stage a mild recovery in the afternoon after Germany's economy expanded five times faster than economists estimated before late selling of IOICORP and GENM ensured market closed near day's low. Broader market was negative with decliners overwhelming advancers 658:176. Futures closed 1549.5 (11.5 points discount).

2) Heavyweights: CIMB-2.27% RM7.32, IOICORP-3.28% RM5.01, MAYBANK-1.15% RM8.63, PCHEM-1.38% RM6.45, GENM-1.89% RM3.64, AMMB-1.43% RM6.21, AIRASIA-2.51% RM3.49, KLK-1.29% RM22.90

3) DBT: BERTAM 8mil @ RM0.65 (3.8% PUC, 5.8% discount), BJCORP 5.2mil @ RM0.749

4) Situationals:

PERMAJU-4.85% RM0.98: Share price fell and ended at day's low after its directors denied a chinese newspaper report that it was disposing a 30 acres land in Sabah for RM100mil.

5) PERWAJA

1Q MAR 2012  Tover -5% RM406.1m  Net RM16.2m  EPS 2.9sen   Cons(f) (RM5.9m)

Lower turnover due to lower sales volume, however lower cost of raw materials and higher steel prices resulted in a positive bottom line to the tune of RM16.2m vs a loss of RM24.3m YOY. The profitability was also aided by the lack of provisions for write down in inventory value. The Group has embarked on the construction of a concentration and palletizing plant which when completed will reduce its reliance on imported pellets and exposure to raw material price fluctuations thus reducing production cost. +ve

6) Market - A technical rebound looks likely on the back of better than expected German GDP numbers, helping the Euro region from slipping into a recession however a solution to prevent the contagion effect in the event of a Greek default has yet to be formulated to help calm markets in the medium to longer term.