FBM30 1536.04
-25.03points (-1.60%) Volume
1,331mil Value 2,061mil
1) KLCI fell to its lowest since end of Jan as global
markets were routed on fears Greece's decision to call new election in June
could see Greece exiting from the Eurozone and deepen the regions debt crisis. Index ended near day's low 1535.05 (-26.02pts) on
persistent selling of key heavyweight with plantation-2.5% the worst performing
sector. Broader market was negative with decliners thumping
advancers 822:97. Futures closed 1524 (12 points discount).
2)Heavyweights: TENAGA-4.34% RM6.17, SIME-1.95% RM9.54,
CIMB-1.91% RM7.18, IOICORP-2.20% RM4.90, DIGI-1.76% RM3.90, MAYBANK-0.8%
RM8.56, GENM-3.57% RM3.51, AXIATA-1.12% RM5.31
3) DBT: MICROLN 25.5mil @ RM0.18 (20% PUC), BJCORP
23.9mil @ RM0.749
4) Situationals:
RHBCAP+0.97% RM7.27: Share price bucked the overall
weaker market after announcing shareholders can elect to participate in its
dividend reinvestment plan and subscribe for new shares at RM6.52 per share.
This is in relation to dividends that was declared on 28 Febuary 2012.
5) MISC
1Q MARCH 2012
Tover -18% RM2.4bn Net
(RM409.8m) EPS (10.4sen) Cons (f)
RM977m 1Q revenue recorded was lower largely due to reduction in Liner business
revenue as the business segment suffered a 93% reduction in liftings following
the Group's decision to completely exit from the segment by mid 2012 and lower
freight rates. . Accordingly the segment operating losses was RM308.4m. The
sector also incurred a provision of RM220.4m. Accordingly the segment operating losses was RM308.4m.
As for its petroleum business, both VLCC and Aframax
sectors saw a slight improvement in average market rates influenced by a
combination of growth in seaborne crude oil volumes and transport distance. But
despite this, revenue still fell 3.5% due to lower earning days and lower
charter renewal rates for its VLCC sector. Coupled with market improvement in
the Chemical sector from higher freight rates in palm oil and chemical sub
sectors, the Energy related shipping segment's operating profit improved to RM280.6m vs RM112.1m
preceeding qtr (both Petroleum and Chemical biz have reduced losses by 42.8%
and 29.9% respectively)
Heavy Engineering business saw a decrease in revenue YOY
as a result of the staggered novation of EPCIC Turkmenistan Block 1 project to
a JV entity but partially offset by higher number of Topsides and Jackets
projects developed and secured in the qtr. Operating profit improved to
RM171.7m vs RM142.4m preceeding qtr.
They also recognized additional impairment provision on
its ships of RM116.4m in the current qtr.
Going forward the company continues to cite headwinds of
low rates, high bunker cost and vessel oversupply overhang as their main
challenges but the LNG market remains favourable with buoyant demand for gas
energy from Japan.
+ve as this will be the last qtr of accounting from liner
segment plus some improvements as seen in Petroleum and Chemical
business. BOW for a medium to long term story as the business cycle looks to
have bottomed for the shipping industry.
6) Market - Greece remains thick on investors lips as the
market waits in eager anticipation on talks of a possible German and French plan
to help spur economic growth in Greece as long as they commit to the austerity
drive and remain in the Euro. Further falls on the KLCI possible but a
technical imminent as we fast approach our strong support levels of 1525pts.
