Friday, November 2, 2012

Market Roundup | 01 Nov 2012


FBM30  1675.69     +2.62 pts (+0.16%)     Vol   1.69b     Value RM1.65b
 
1) The KLSE opened strong, reaching a high of 1678 pts before tapering off lower to trade in the red, before late buying closed it up 2.6 points . This on the back of firmer regional as data showed China's manufacturing expanded for the first time in 3 months. GAMUDA+3.7% hogged the limelight, after it was disclosed that major shareholder Datuk Lin had accumulated some 18.5m shares in the market over the past week. Market breath turned positive, with advancers edging decliners 399:326. Futures closed 1672 pts ( 3.69 pts disc).
 
2) Heavyweights : PARKSON +5.1% RM5.10, MMC+4.2% RM2.72, SKPETRO+4% RM2.61, CIMB+1.7% RM7.76. GAB+1.9% RM16.92, DRB-1.6% RM2.44, PPB-1.2%
RM13.30
 
3) DBT: HUBLINE 123.9m @ RM0.06 ( 3.8% PUC), THHEAVY 16m @ RM0.565, SUNREIT 10m @ RM1.53
 
4) Situational:
Axiata -0.8%: after it's 67% subsidiary XL Axiata posted below expectation 9 months core net profit of Rp 2302b (-5% yoy), representing only 70% of FY street estimates. 3Q revenue growth slowed to 6.1% (2Q:7.9%) while subscriber base lost 3.5m subscribers, from 45.5m to 42m. XL contributes about 26% of Axiata group's FY12 projected adjusted net profit.
 
TChong +0.2% : after Co priced it's new offering, the 1.5L Nissan Almera, below market expectation, at RM66,800 to RM79,800. This signals a strong push towards reduced car prices in the 1.5L category, commonly known in the industry as the B-segment. We expect competition in this segment will heat up following this initiative from Tan Chong, as it may trigger a price reaction from competitors. The latest price is c8% cheaper than the variants from the other Japanese rivals.
 
5) SAPURA KENCANA
Announced that its wholly-owned subsidiary company, Kencana HL Sdn Bhd, has received a letter of award from HESS Exploration and Production Malaysia B.V. for the provision of Engineering, Procurement, Construction and Commissioning of Kamelia-A Wellhead Platform for Early Production System of the Integrated Gas Development  Project (North Malay Basin Field) an area located approximately 300km offshore Peninsular Malaysia. The work is expected to be completed by the first quarter of 2013. The Award which is valued at approximately RM135.8 million.  +ve positioned to capitalized on the proposed RM300bn capex by Petronas over the next 5 years. Core Holding.
 
6) Market - Better PMI from China and stronger than expected recovery in the UK will continue to boost investor confidence in the global recovery and in turn increase risk profile of investments. We continue to recommend accumulation ahead of a year end/ 1Q 2013 rally.