FBM30 1620.31
-0.24 points (-0.01%) Volume 1,266mil Value 1,293mil
1) KLCI ended mixed trading in a tight band of 4 points
as regionals were markedly lower following sluggish US job data last week while
China's Premier Wen JiaBao commented that China's economy faces further
downward pressure with CPI easing to a 29months low in June. Construction-0.59%
underperformed the market led by MRCB-2%, WCT-1.6% and ZELAN-3.7%. Market
breadth was negative with decliners outpacing gainers 423:319. Futures closed
1620pts ( parity).
2) Heavyweights: GENTING-0.91% RM9.76, GENM-1.9% RM3.61,
IOICORP-0.76% RM5.24, PPB-1.87% RM15.78, HLBANK+2.68% RM13.04, CIMB+0.52%
RM7.74, UMW+2.17% RM9.90, MAYBANK+0.35% RM8.70
3) DBT: MPHB 11.9mil @ RM3.59 (0.8% PUC), RPB 10mil @
RM0.38 (1.1% PUC, 7.3% discount)
4) Situationals:
LIONIND+2.4% RM1.28: Share price was firmer after news
reported Flat steel producers will meet with the MITI this week to discuss some
policy changes that could possibly shape a new landscape for the sector. This
is following consultation by MITI from Boston Consulting Group to conduct an
in-depth study on the sector.
5) LPI Cap: HY 06/12 Rev+20% RM511.1m Net+3% RM71.9m EPS
32.64s Div 15s
Results 20% behind cons RM179m.
For 6 mths yoy, revenue was higher largely contributed by
the general insurance segment which registered a significant growth of 21.5% to
RM494.7m. The revenue from investment holding was lower at RM16.3m, mainly due
to reduced dividend income & interest income received during the period.
Consequent to the improved revenue, the group maintained it's PBT of RM92.4m,
+0.4% over the previous period. The increase in PBT was contributed by the
general insurance but offset by the lower earnings from the investment holding
segment. Qoq, PBT+44%, mainly attributable to the significant improvement of underwriting
profits contributed by it's wholly owned subsidiary Lonpac Insurance Bhd.
Ahead, the consolidation of the insurance industry has
brought about many new challenges. The industry is on track to see intense
competition & further rate erosion. However, LPI is expected to sustain
it's faster than industry organic growth & it's cash generation remains one
of the strongest in the industry. It remains a compelling dividend play with
6-8% yield for FY12-14 - BOW.
6) Market - will consolidate after the recent
outperformance especially with cautious sentiments on equities due to
persistent weak economic data and the continued flight-to-safety trades as seen
by the weakening euro vis-à-vis the USD.