1) KLCI ended at its day high following stronger
regionals as markets jumped on better US manufacturing data in April which was
the strongest in 10 months while China PMI are showing signs of continued
stabilization. Index was boosted by financials+0.88% led by BIMB+5%, MBSB+4%, CIMB+1.5%. Politically linked counters also
rebounded from recent selldown with gains seen in UEMLAND+5.5%, MRCB+2%,
MMC+2.2%. Broader market turned positive with advancers leading
decliners 458:281. Futures closed 1583.5 (1 points premium).
2) Heavyweights: GENTING+3.09% RM10.66, CIMB+1.48%
RM7.52, MAYBANK+0.93% RM8.71, PBBANK+0.73% RM13.80, IOICORP+1.34% RM5.29,
GENM+1.56% RM3.90, PCHEM+0.76% RM6.58, UEMLAND+5.47% RM2.12
3) DBT: FRONTKN 11.8mil @ RM.10 (1.2% PUC), RSAWIT 3mil @
RM1.08, LIENHOE 2.5mil @ RM0.28
4) Situationals:
MENANG+2.08% RM2.08: MENANG's 51% subsidiary, Rumpun
Positif Sdn Bhd
entered into a Concession Agreement with the Ministry of
Higher Education Malaysia and Universiti Teknologi MARA to undertake
Build-Lease-Maintain-Transfer of a UITM campus at Puncak Alam, Selangor on a
Private Finance Initiative basis. The
total construction cost of the Campus is approximately RM260mil with concession
period of 23 years.
5) UNISEM
1Q Mar 2012 Tover
-12 % RM256.6m Net RM -13.5m EPS -2sens
(f) RM52.4m
Lower earnings hampered by continued low sales volume
with utilization rate still hovering around the 60% levels. Margins also
impacted by higher depreciation and amortization charges, RM42.5m +6.8% and
higher financing cost RM5m +44%. It incurred a one time retrenchment cost of
RM5.7m arising from efficiency and redundancy exercise at PT Unisem.
Utilisation rates are expected to pick up in the 2Q with
an improved 2H projected, in line with the industry trend. Prefer Globetronics
who has managed to diversify away from high volume low margin business for PCs
to new ventures tapping into the high growth smart phone/tablet market.
6) Market - Despite the current technical rebound
experienced by Global markets led by strong US Economic data, the KLSE could
continue to lag on uncertainties surrounding the imminent lucky 13th General
Elections.
Range bound trading to continue between 1564-1600pts.
