Tuesday, November 6, 2012

Market Roundup | 5 Nov 2012

FBM 1654.04  -2.09 pts (-0.13% )  Volume 1.12b  Value RM1.45b
 
1) The KLCI traded lower for most of the day, in tandem with the weaker regional markets, as investors await tomorrow's US presidential election. Trading was again lackluster as investors largely remained sidelined with little lead to spur the market. The Construction sector +0.6% bucked the lower trend, led by GAMUDA+2.5%, IJM+0.8%. Market breath continues to be negative, with losers overwhelming gainers 471:235. Future closed 1647.5 pts ( 6.54 pts disc).
 
2) Heavyweights: PARKSON+1.9% RM5.30, MHB+1.3% RM4.85, GAB+1.2% RM16.90, BAT+0.7% RM61.44, PBBANK-1.6% RM15.54, ASTRO-1.8% RM2.66, NESTLE-1.3% RM68.60, YTL-1.1% RM1.74.
 
3) DBT: MAGNI 13.2m @ RM1.50, PERISAI 9m @ RM1.0, GAMUDA 7.5m @ RM3.50 ( 4% below close).
 
4) Situational:
WCT -0.4%: after entering a conditional lease purchase agreement with Iskandar Investment Bhd to acquire a 18.1 acre piece of land in Mukim of Pulai, Johor Bahru for RM99.5m. WCT intends to use the land for a mixed commercial development with an estimated GDV of RM1.5b over 5 years, that consists of office spaces, retail components and apartments. This is the 3rd land-bank acquisition by WCT in FY12, the others being in OUG, KL and Skudai in Johor. Overall, the acquisition is viewed to be in line with WCT's plan to increase it's property development business earnings.
 
Fajarbaru -1.4%: Co reported 1Q13 net profit of just RM0.6m, way below expectations, accounting for only 3.2% of street's full year estimates of RM18.8m. The sharp fall in earnings was attributable to delay in site possession for the Gleneagles hospital project, LRT depot works & a depleting OB replenishment. Net margins was also down, due to higher operating costs.
 
5) PAVREIT
9 mths 9/2012   Tover RM254.7m      Net RM144.3m          EPS 4.81sen
3.2% above cons(f) RM186.4m
The stronger 3Q was a result of higher revenue arising from Pavillion Mall advertising income and income from Fashion Avenue which commenced this qtr. Borrowing cost for the 9mths stood at RM25.13m and management fees totaled RM13.8m. Asset enhancement initiatives announced on Jan
2011 has been completed with most tenants commencing from the end of the third qtr, coupled with the office tower which is now fully tenanted, all adding to a much stronger 4Q. Management had earlier guided to fully distribute this year earnings which will result in a yield of around 5%. Market perform.
 
6) Market - Investors to stay largely side lined ahead of the US elections and China's Communist Party Congress. Weaker bias on the KLCI dragged down by falling CPO pxs. Immediate support, 1634points on the KLCI