FBM30 1644.6 -0.4 pts ( 0.02%) Volume 1.11b Value RM1.59b
1) The KLSE traded higher for most of the day, amid
speculation China will do more to boost growth & after the US housing starts
jumped to the highest in 4 years, before selling pressure in the second session
edged the index lower to close with a small loss of 0.4 pts. Technology firms
got a boost from the US corporate results, UNISEM+3.8%, GTRONICS+6.3%, NOTION+1.6% and O&G firms rallied on the back of
rising crude oil prices SKPETRO+4.7%, DIALOG+3.8%, PERISAI+6.3% . The broader
market marginally positive, with gainers edging losers 389:378 . Futures
closed 1648 5 pts ( 3.9 pts prem) .
2) Heavyweights: SKPETRO+4.7%, BURSA+2.9%, IOIC+1.7%,
IJM+1.2%, YTL-2.6%, BAT-2%, MRCH-2.2%, TM-0.6%, GENM-0.6%.
3) DBT: LIONCOR 47m @ RM0.325 ( 3.6% PUC), RPB 10m @
RM0.38 ( 7% below overnight), ENCORP-WA 5.6m @ RM0.20.
4) Situational:
GKENT -1.9% RM1.02 : after chairman said after it's AGM
that it had not received any indication on the award of the RM960m Ampang LRT
line extension project. This was contrary to earlier reports suggesting that
the Co will be awarded the project. The GKent consortium consists of China
Railway Construction Group & Tewet GMBH. The tender for the LRT extension
project closed on June 16 last year.
5) TENAGA
9mths May 2012
Tover +14.8% RM26.5bn Net +14.7%
RM3.19bn EPS 58.4sen
23% above
cons(f) RM3.45bn
Better set of results were achieved on the back of a 4.2%
increase in electricity demand in Pen Malaysia despite a 8.2% increase in
operating expense. Average coal price YTD was lower at USD103/m tn vs
USD107.5/m tn with generation from coal fired plants reaching a maximum in the
3rd qtr. Alternative fuel cost YTD totalled RM1.717bn vs total fuel cost
compensation YTD of RM1.145bn as the government has agreed to continue the fuel
cost sharing mechanism until commissioning of the Malacca RGT plant in Sept 2012.
Forex loss YTD at RM323.8, but despite these factors EBITA for the 9mths
recorded a healthy 31.1% vs 21.1% YOY. Foreign shareholding remains largely unchanged at 11.94%
for the last 6qtrs. Immediate rerating catalyst could come in September when
the Govt announces decision on 1st generation IPPS with extensions of their
agreements expiring in 2016 likely to be accompanied by a cut in rates. Currently IPP cost is the largest component of operating
expense accounting for 46%. HOLD
6) Market - Regional bounce will continue to see bargain
hunting for laggards on the KLSE. Buy SIME, Genting, POS, UEMLand.