1) KLCI had its biggest gain of the month snapping its 5
days losing streak as heavily battered telco stocks, PETGAS led the key
heavyweights higher. Late push up of IOICORP ensured index close near its day
high. Regional saw profit taking set in on fear of US budget
woes could slowdown global growth. Market breadth stayed negative with
decliners edging advancers 358:343. Future closed 1609 (2.5 points premium).
2) Heavyweights: AXIATA+4.45% RM5.87, DIGI+4.4% RM4.75,
IOICORP+3.7% RM5.03, PETGAS+3.5% RM17.70, TM+2.4% RM5.50, MAXIS+2.04% RM6.50,
SIME-2.7% RM9.00, GENTING-1.3% RM9.00
3) DBT: NEXTNAT 50mil @ RM0.11 (8.4% PUC), CSL 36.46mil @
RM0.96 (2.9% PUC, 14.3% premium), IOICORP 15mil @ RM4.84 (3.7% discount).
4) Situational:
MAS-16.8% RM0.84: Share price fell sharply after company
proposed a rights issue to raise RM3.1bn for working capital and debt
repayments. Par value will also be reduced from by 90sen to 10sen
par.
5) IJM: HY09/12 Rev+2.5% RM2.183b Net+19% RM226.1m EPS
16.36s Div 4s
Results
trails cons RM504m by 10%
For 6 months yoy, Rev +2.5% with significant growth in
the Construction & Infrastructure divisions. Pretax profit increased by
10%, led by Construction+165%, Property+22% & Infrastructure+172%
while Industry-22%, Plantation-37%. Movements in foreign
exchange rates also resulted in unrealized loss of RM8.1m compared to loss of
RM27.2m LY.
Qoq, PBT rose 40.4% due mainly to unrealized forex gain
of RM22.8m (vs forex loss of RM31m in preceding quarter) & higher
plantation yields with production of FFB increasing by 48% as plantation begins
to move out from it's traditional low crop season.
IJM's latest move of acquiring a 25% stake in Scomi
appears not to have been well received by the market, more so with Scomi's
patchy track records & concern that IJM may need to pour in more funds into
Scomi. We believe this has been fully factored into the price now. This aside,
we still see IJM as a core holding, and would be in for a swift re-rating once
more clarity emerges on domestic construction contract flows post elections (eg
WCE, NPE extention, Kuantan Port). Trading at about 14x FY06/13, HOLD.
6) Market: +ve bias on continuation of technical bounce,
coinciding with month-end dressing activities; immediate resistance at KLCI
1625-1635 levels.