FBM30 1565.32
+10.38points (+0.67%) Volume
756.5mil Value 984.4mil
1) KLCI rose for the 4th consecutive days inline with the
stronger region as investors look for possible stimulus from the Chinese
Government. This is despite elevated bond yield for Eurozone with Spanish banks
facing funding constraint. Financials+0.73% led the rally of heavyweights in
the afternoon session after hints by Prime Minister of relaxing the 30% foreign
ownership ruling. Broader market was positive with advancers leading decliners
416:284. Futures closed 1567 (2 points premium).
2) Heavyweights: MAYBANK+1.28% RM8.68, CIMB+1.24% RM7.36,
IOICORP+1.6% RM5.08, SIME+0.84% RM9.60, GENM+3.02% RM3.75, AXIATA+0.95% RM5.30,
PBBANK+0.59% RM13.74, PCHEM-0.75% RM6.65
3) DBT: REXIT 1.8mil @ RM0.28, LITRAK 1.5mil @ RM3.45
4) Situationals:
ALAM+1.87% RM0.545: Company’s wholly owned subsidiary was
awarded a RM125.6mil contract from ExxonMobil. The contract value is for the
provision of 1 accommodation barge for 18 months and an extention option
exercisable for another 12 months.
BURSA-1.77% RM6.12: MSCI May 2012 Semi Annual Index
Review has seen the deletion of Bursa from the MSCI index. This will take
effect after the close of 31 May 2012.
5) GENTING PLANTATIONS
1Q MAR 2012 Tover
RM272.6m Net -19% RM77.3m EPS 10.4sen 34%
below cons (f) RM466m
The YOY decline in profit during the quarter reflects the
impact of lower palm product selling prices and higher operating expenditure in
the Plantation segment. The Group achieved average selling prices for crude
palm oil and palm kernel of RM3,179 per metric tonne and RM1,941 per metric
tonne respectively in the first quarter, down 14% and 36% respectively YOY. The
Group’s fresh fruit bunches production was 3% higher in 1Q 2012 compared with
the corresponding period of 2011. Higher operating costs arising from wage and
material price inflation, along with increased fertiliser application and
recruitment related administrative expenses.
Its Indonesian division continued to record start up
losses but remains the primary source of acreage growth with areas
progressively reaching maturity over the course of the year. The scheduled
completion of palm oil processing facilities would provide an added boost to
the Indonesia operations whilst plantation development activities continue. A
recently‐announced proposed joint venture for the development and cultivation
of 74,390 hectares of oil palm plantations in Kalimantan Tengah also bodes
positively for the Group’s production growth and returns in the longer term.
6) Market - Increased concerns over Spain debt issues
could derail the current technical rebound but bulls will look towards US
employment numbers at the end of the week for signs of a recovery there and aid
sentiment.