FBM30 1575.17
+9.85points (+0.63%) Volume 921mil Value 1,245mil
1) KLCI was the outperformer in the region raising to a
high of 1578.28 (+12.96pts) led by key heavyweights on possible month end
closing activity. Regionals were markedly lower on news China has no plans to
introduce large-scale stimulus as it did during the global financial crisis and
after Spain's sovereign credit rating was cut to A from AA. Broader market positive with advancers edging losers
378:331. Futures closed 1581 (6 points premium).
2) Heavyweights: CIMB+1.77% RM7.49, IOICORP+2.95% RM5.23,
YTL+3.85% RM1.89, BAT+4.41% RM54.40, GENM+2.4% RM3.84, AXIATA+0.57% RM5.33, SIME+0.42% RM9.64, UMW+2.29% RM8.03
3) DBT: SKPETRO 300mil @ RM2.12 (6% PUC, 2.3% discount),
BAHVEST 6.3mil @ RM0.30, HWGB 5mil @ RM0.38
4) Situationals:
PESTECH-9% RM0.91: PESTECH an integrated electric power
company fell on its debut in Main market today ending at its day's low with
5mil shares traded. IPO was price at
RM1.00.
5)Sime:9mths 03/12 Rev+16% RM33.5b Net+30% RM3.05b EPS
50.77s Div 10s Results in
line with con(f) RM4.09b
For 9-mths, all business segments, except for Healthcare,
registered improved earnings. Earnings from Plantation+19%, due to higher CPO
prices realized of RM2881/ton against RM2828/ton LY, coupled with higher FFB
production +0.7%. Earnings from Property+49.9% due to increase in property
development works of the group. Industrial+41% with all regions recording
exceptional results except for China/HK, due to adverse local government
policies which curbed the domestic construction activities. Earnings from Motor+4.6%, Energy & Utilities+64%
while Healthcare -5.2%. Qoq, Revenue-3.2%, Net-20.5%. These were largely due to
lower profit from Plantation -37.5%, as a result of seasonally lower FFB
production in the quarter (-21%), in spite of higher CPO ASP.
The continued worsening & prolonged Eurozone debt
crisis and uncertainty over outlook of US economy are likely to result in
slower global economic conditions & pace of Asian economic growth. However,
the Plantation & Industrial divisions are expected to remain strong,
underpinned by favorable CPO prices & robust demand from mining, logging
& construction sectors for the current FY. Group had earlier set KPIs of
Net profit (RM3.3b) & ROE of 13.3% for YE 06/12, which it now expect to
surpass. With Industrial segment driving it's earnings growth, lumpy provisions
out of the way, non-core/loss making business being sold and trading at 14x on
FY06/12 EPS of 68s - BOW.
6)Mkt: heightened risk from the Eurozone as reflected in
the soaring bond yields of peripheral countries, will cap the current technical
bounce.