Thursday, May 17, 2012

Market Roundup | 17 May 2012

FBM30 1544.21           +8.17points (+0.53%)       Volume 1,277mil     Value 1,935mil        
1) Markets recovered some losses from yesterday with KLCI reaching its day's high of 1552.25 (+16.21pts) following positive economic data in the US. However index pared its gains after midday with regions turning negative as concerns remains in Eurozone following news of ECB temporarily stopping lending to undercapitalized Greek banks. Broader market remained positive with gainers leading losers 472:279. Futures closed 1534 (10 points discount).
2) Heavyweights: TENAGA+1.94% RM6.29, CIMB+0.98% RM7.25, GENM+2.56% RM3.60, AXIATA+0.75% RM5.35, IOICORP+1.02% RM4.95, AMMB+1.63% RM6.23, PCHEM+0.94% RM6.46, SIME-0.63% RM9.48
3) DBT: SKPETRO 50mil @ RM2.07 (1% PUC), HAPSENG 50mil @ RM1.73 (2.3% PUC. 4.8% premium)
4) Situationals:
SCOMI+2.13% RM0.24: Company entered into a conditional share sale agreement with AOS Orwell Limited for the disposal of its 100% equity interest in Scomi Nigeria Pte Ltd and 2% equity interest in Oiltools Africa Limited for a total cash consideration of USD39.77 million (RM123.9mil). The proposed disposal is expected to result in a gain on disposal of approximately RM34.4mil.
5) JCY
1H Mar 2012  Tover +35.7% RM1.135bn   Net RM325.5m  EPS 15.92sen 50% above cons(f) RM434m Better ASP as a result of shortage in HDD mechanical components after Oct 2011 Thai floods coupled with favorable exchange rates and higher volumes shipped during the period saw earnings jump substantially YOY.
Profitability also improved on the back of efficient product mix and continued efficiency cost management.  Output will also be improved with the commissioning of their new Suzhou plant.
The abnormally high ASP is expect to be maintained in the near future as the supply disruption could still take some time to normalize according to an independent industry consultant as vendors with approximately 180m units of pre flood levels will take another 2 qtrs to catch up. The company declared an interim div of 3sen bringing 1H payout to 5sen and in line with guidance of 11 sen full year.
6) Market - No change from recent views with uncertainty to continue surrounding the fate of Greece in the Euro but levels especially towards the 1525pts level on the KLCI compelling for a technical bounce trade.
BOW MISC