FBM30 1648.13
-0.09points (-0.01%) Volume
1,238.6mil Value 1,067mil
1) KLCI traded in a tight 3 points range as investors
stayed on the sidelines in the absence of action by central banks in US and
China while China's industrial companies profits fell for the fourth straight
month adding to signs of a slowing China economy. Investors will now look ahead
to Bernanke's annual Jackson Hole meeting for any signal of monetary easing.
Penny stocks dominated volume led by AGLOBAL+7%, ASUPREM+4% and SCOMI+18%. Market breadth was negative
with decliners outpacing gainers 414:344. Futures closed 1649.5pts
(1.5pts premium).
2) Heavyweights: IOICORP+1.39% RM5.12, TENAGA+0.88%
RM6.87, GENTING+0.78% RM9.07, PETGAS+0.62% RM19.42, DIGI-1.84%
RM4.79, BAT-1.88% RM62.60, AXIATA-0.33% RM5.98, YTL-1.08% RM1.84
3) DBT: NEXTNAT 25mil @ RM0.10 (28.5% discount), KASSET
3mil @ RM9.08, MRCB 1.5mil @ RM1.73 (3.6% premium)
4) Situationals:
BONIA-3.86% RM2.49: Chiang Sang Sem (CSS) which is
Bonia's Group Executive Chairman cum CEO is in discussion with several parties
to acquire certain stakes in Bonia at indicative price for the in the range of
RM1.80 to RM2.00 per share. The
Potential Acquisition, when completed, would result in CSS and his family
collectively holding more than 50%. CSS together with his family would then be
obliged to extend a mandatory general offer to acquire the remaining shares in
Bonia at the same price as the Potential Acquisition.
5) IOICorp: FY06/12 Rev-4% RM15.6b Net-19% RM1.79b EPS
27.86s Div 17s
Results 10% below cons RM1.99b
For 12-mths, Group PBT-17% due mainly to translation loss
on forex denominated borrowings of RM327m ( FY2011: gain of RM215m) & lower
profit from resource based manufacturing segment. These were mitigated by gains
on dilution of interest in an associated co of RM124m.
Operating profit from Plantation +4% mainly due to higher
CPO prices realized (RM3135 vs RM2945 LY), Resource based manufacturing -36%
due to FV differences on derivative contracts. Operating profit from Property
-14% due to slower sales take-up rates while Property Investment +5%.
Qoq, PBT-20%, again due to translation losses on forex
denominated borrowings, offset by FV gains from investment properties.
Operating profit from Plantation+4%, Property +144%, Resource
manufacturing-54%.
Ahead, outlook remains neutral. Limited FFB growth
prospect, compressed margins in downstream division & unexciting property outlook
could limit the shares upside. The valuation of about 16X FY13 appears fair
given the unexciting earnings growth of 3-5%. HOLD.
6) Mkt: sideways quiet trade as markets await hints on
policy moves from central bankers at the Jackson Hole conference.
