FBM30 1656.13 -19.56 pts (-1.17%) Volume 1.37b Value RM1.7b
1) Despite the strong Dow performance overnight, backed
by better than expected employment & manufacturing data and higher consumer
confidence, the KLSE succumbed to selling pressure with the CI drifting lower
to close near day low, shedding more than 19 pts . Market volume again
dominated by penny stocks AGLOBAL +13%, TIGER+16% , LUSTER+5%. The Telco sector
was a major loser, AXIATA-4.9%, TM-4.7%, DIGI-3.6%. Market breath was negative,
with losers overwhelming gainers 398:322. Futures closed 1649 pts ( 7.13pts disc).
2) Heavyweights : SKPETRO+3.8% RM2.71, MISC+2.1% RM4.33,
PARKSON+1.9% RM5.20, GENTING+1.5% RM9.03, GAMUDA-4.5% RM3.58, BAT-3.1% RM61.02,
GENM-2.8% RM3.48, PPB-2.3% RM13.00.
3) DBT : SUNREIT 10.4m @ RM1.53, HUBLINE 5m @ RM0.065,
GENM 2.9m @ RM3.58.
4) Situational:
DRB-Hicom unch: after Co announced that it has completed
the internal reorganization exercise to rationalize & align the group's
businesses and investment in EON Bhd & Proton Edar SB. The exercise, among
others, include the sale of EON's assets & liabilities and employees to
Proton Edar, as well as EON Properties SB and Automotive Conversion Engineering
SB, for a total cash consideration of RM400.8m. This move is part of DRB's plan
to revive Proton .
BJLand +4.9%: Co announced plans for a RM9.92b casino and
mall on Jeju Island in South Korea. The development will feature the biggest
casino & shopping mall in South Korea, along with condominiums, villas
& hotels once completed. The 1st phase will have a GDV of US250m ( includes
villa & market walk units), planned to be funded by internal finds/ bank
borrowings and should be completed in 26 months. Pre-marketing has already
started.
5) AIRPORT (MAHB)
The company released benign September airport data with
passenger movements at airports operated by the MAHB Group recording a marginal
0.6% YOY. International passengers increased by 2.7% while the domestic sector
declined by 3.6%. The lower domestic passenger movements for September 2012 was
expected due to the shift in festive
season. KLIA recorded a 0.7% passenger increase contributed mainly by the
international sector which grew by 3.3% as against the negative 5.2% for the
domestic sector.
Third quarter 2012 passenger traffic registered 2.9%
increase over third quarter 2011. Cargo declined by 0.6% while aircraft
movements increased by 2.2%.
It is foreseen that the last quarter 2012 would record a
higher year-on-year quarterly growth than the previous quarters. Winter
schedule from October onwards already show 8.7% increase in airline seat
capacity contribution by the domestic carriers as well as the international
operators.
Current year numbers will remain unexciting especially
after the route rationalization and capacity cuts by airlines. However 2013
should prove more exciting with the completion of KLIA 2 by May 2013, and the
earlier than expected launch of Malindo Airways by March 2013. Accumulate
6) Market - Sentiment next week will be dictated by the
closely watched jobs data for Oct from the US and the unresolved squabbles by
Greek coalition govt lawmakers over enforcement of austerity measures. Today's
sharp sell off in defensive names such as the telcos, BAT, PetDag is further
evidence of investors increased risk appetite for higher beta stock ahead of
the seasonally best period for equity markets.