FBM 1624.20
+0.89pts (+0.05% ) Volume
1,022mil Value RM1,690mil
1) KLCI gap up at opening reaching a high of 1628.3
(+4.99pts) following a positive DOW overnight. Index pared its gains inline
with the regionals after China's October FDI fell 0.2%. Markups of BAT and
GENTING near close ensured market snap its 4 days losing streak. Plantation-0.39% after Intertek showed exports fell 3.3%
for first 20days compared to Oct. Market breadth stayed negative with decliners
outpacing advancers 358:298. Future closed 1617 (7 pts discount).
2) Heavyweights: CIMB+0.52% RM7.67, GENM+1.48% RM3.43,
GENTING+0.55% RM9.20, DIGI+0.42% RM4.81, BAT+1.04% RM58.54, PCHEM-0.79% RM6.31,
TENAGA-0.43% RM6.92, IOICORP-0.41% RM4.91,
3) DBT: ILB 2.5mil @ RM0.982 (2.7% discount), FAJAR 1mil
@ RM0.68
4) Situational:
DIALOG+0.84% RM2.41: DIALOG announced that its wholly
owned subsidiary, Dialog D & P Sdn Bhd has entered into a Subscription
and Shareholders' Agreement ("SHA") with Asia Energy Services Sdn
Bhd ("AES"), a wholly owned subsidiary of Halliburton International,
Inc, to subscribe 50% equity interest into Halliburton Bayan Petroleum Sdn Bhd
(HBP) to jointly manage an Oilfield Services Contract (OSC) to rejuvenate and
re-develop the mature Bayan field located offshore Bintulu, Sarawak over 24 years. The estimated total project value is estimated
at US$1.2 billion
BGYEAR-56% RM0.175: BGYEAR has been classified as PN17
after it said the work-in-progress worth RM29.6 million is not billable and
chargeable to its customers and the company will need to make provisions for
this amount. the impact of this provisions will affect its shareholders' equity and trigger certain criterias under the Practice
Note 17
5) CIMB
9mths Sep 2012
Tover +15.8% RM10.12bn Net
+12.9% RM3.3bn EPS43.9sen
2.8% above Cons(f) RM4.28bn
The higher turnover was largely due to the 25.8%
expansion in non-interest income. Regional Consumer Bank PBT expanded by 13.5%
Y-o-Y to RM1.672 billion. The star performer was once again Indonesia expanding
by 55.3% Y-o-Y from a combination of better margins in 9M12 and growth in
assets, partially offset by weaker currency translation.
Thai consumer operations however lost RM13 million due to
higher provisions and the retrospective implementation of a new deposit
insurance framework. The Group's regional Wholesale Banking PBT rose 24.5%
Y-o-Y to RM2.240 billion principally driven by the uptick in the Treasury &
Markets division PBT to RM1.116 billion from the strong flows in debt capital
markets and foreign exchange. Total non-Malaysian PBT to the group increased to
43% in 9MFY12 from 38% in 9MFY11.
The Group's total gross loans expanded 9.8% YOY.
Corporate loans increased 10.7% while retail loans and commercial banking loans
grew 8.9% and 11.0% respectively. Total Group deposits grew by 6.1% Y-o-Y Investment Banking PBT was lower by 27.0% Y-o-Y due to
lower income and initial costs related to the acquisition of selected APAC IB
businesses of The Royal Bank of Scotland.
The Group's CASA ratio increased slightly to 34.6% from
33.0% last year while overall net interest margin was marginally lower at 3.08%
from 3.12% last year. Total loan impairment of RM277 million in 9MFY12 was a
39.9% YOY. RWCR stood at 15.2% while its core capital ratio stood at 13.4% as
at 30 September 2012.
The deal pipeline in the immediate future remains strong
with the group now focusing on integrating RBS and Bank of Commerce
(Phillip). HOLD
6) Market - Maintain stance of a higher close to the
market by year end hence advocate step buying for beaten down names including
Armada, Genting M, HL Ind, TM
