Market Roundup | 14 Nov 2012

FBM 1631.68      -5.91pts (-0.36% ) Volume 882mil   Value RM1,802mil

1) KLCI continued to see selling pressure with volume picking up towards the end of the day possibly exacerbated by UK jobless claims which rose at fastest pace in a yr. Regionals with exception of Spore (which was similarly closed yest) recovered some losses but obvious fears from unresolved financial worries in US and European debt concerns continue to dampen sentiment. Persistent selling was noted in 2H of day on selected blues:PCHEM, BAT, GENM, GENTING. Market breadth stayed negative for the 8th consecutive day with decliners edging advancers 357:309. Future closed 1624.5 (7 pts discount).

2) Heavyweights: GENTING-3.3% RM9.18, SIME-0.72% RM9.62, PPB-3% RM12.20, BAT-2.62% RM56.48, GENM-1.73% RM3.40, MAXIS-1.05% RM6.59, MAYBNAK+0.33% RM9.05, YTL+1.75% RM1.74 

3) DBT: TGOFF 70mil @ RM0.39 (24% PUC, matching E-Cap Internal One Sdn Bhd Stake), SKPRES 4mil @ RM0.38

 

4) Situational:

ASTRO+3.03% RM2.72: Astro Malaysia Holdings Bhd beat several bidders to win the broadcast rights to preview the English Premier League football matches for the next 3 seasons for RM1bn. Astro is currently paying RM267mil a year to broadcast 3 seasons from 2010-2012.

 

5) HLBank:  1Q 09/12  Rev+11% RM1002.5m Net+19% RM477.6m  EPS 27.27s 

Results in line with Cons RM1.873b

 Strong set of Q1 numbers:For 3-months yoy, PBT+24.1%, driven by higher net income +11% and lower allowances for impaired loans of RM26.5m. This was partially offset by lower write-back of impairment losses of RM2.5m. On major operating segments:PBT from Personal Financial Services (PFS) +2.7% while loan base +4%. PBT from Business & Corporate Banking+26% ( contributed mainly by higher loans base +17% & deposit base ) while the Global Market segment +206%. Qoq, PBT +27%, mainly from higher net income, lower allowances for impaired loans & other operating expenses & higher share of profit from Bank of Chengdu. Yoy, HLBank's total assets+8.5% to RM155.6b, gross loans +7.7% to RM91.8b, customer deposit+8.1% to RM123.5b, while Tier-1 CAR @ 12% & RWCR @ 15.8%. No dividend was declared. Trading at FY06/14 P/Bk 1.8x, PER 13.2x, Div yield 3%. Prefer RHBCap at current juncture which trades at more attractive PER 10x, P:B 1.38x with possible rerating catalyst upon completion of merger with OSK to further boost its earnings base from overseas contributions.

6) Mkt - Thin, rangebound trading to persist for Friday ahead of 3Q GDP figure by BNM. 3Q results reporting season to dictate direction of stocks next week.