FBM30 1612.38
-11.32 points (-0.70%)
Volume 827mil Value 1,352mil
1) KLCI was hit down at opening in relatively light
trading with index touching a low of 1595.85 (-27.85points) before buying
interest supported the market to close near its day's high. Regionals were also
lower on worries global economy slowdown might persist in the near future.
Plantation names led by TSH-3.5%, TDM-2.5% and GENP-2% were weaker as CPO
futures fell to a low of RM2,577/MT. Market breadth was negative as decliners
thumped gainers 571:183. Futures closed 1610pts (2 points discount).
2) Heavyweights: MAYBANK-1.53% RM9.01, CIMB-1.20% RM7.44,
PBBANK-0.7% RM14.24, PCHEM-1.68% RM6.43, IOICORP+0.4% RM4.93, GENM-2.86%
RM3.40, TENAGA-0.89% RM6.70, UMW-2.07% RM9.93
3) DBT: MQTECH 3.8mil @ RM0.005 , AIRASIA 1.1mil @
RM3.00, IGBREIT 1mil @ RM1.42
MBMR-6.13% RM3.37, UMW-2% RM9.93: Automotive stocks
slipped following the release by MAA that August's Total industry volume (TIV)
declined 11% yoy to 51,823 units. This is 13% lower compared to July. This is
due to shorter working month due to Hari Raya while market also cited
purchasers possibly holding back purchases following ongoing talks on proposed
gradual reduction in new vehicle prices.
5) SAPURAKENCANA PETROLEUM
1H JULY 2012
Tover RM2.74bn Net
RM269.4m EPS 4.36sen
Excl merger expense, 9% above Cons(f) RM562m
1H numbers are not comparable as the merger of
Sapura/Kencana was on completed on 15 May 2012. Offshore Construction and
subsea services continued to be the main profit contributor as revenue for
current period increased by RM869.4 million or 118.3% YOY, mainly due to higher
scope of works for Pan Malaysia contracts, consistent with client planned
activities for current period and contribution from several new contracts that
were executed during the current period. Fab & HUC, the other main profit
center, recorded a profit of RM116.0 million in the current period. 1H numbers
included merger expenses of RM75.4 million.
The company has been lately linked to O&G contracts
in Thailand and Brunei. Currently fairly valued and any price appreciation is
likely to be driven by order book replenishment newsflow. HOLD
6) Market - KLCI could continue to underperform
especially in the short term weighed down by sharply lower CPO prices where
plantations make up a significant portion of the index and uncertainty over
BUDGET 2013 this Friday.