FBM 1641.07
-4.46pts (-0.27% ) Volume
999.8mil Value RM1,492mil
1) KLCI fell for the 5th consecutive days reaching its
day's low of 1632.04 (-13.49pts) as regional markets were affected by
weaker DOW overnight. Index managed to recover on buying support for heavily
sold down Telcos led by TM and AXIATA while BAT, IOICORP, KLK and GENM was
marked up at close. Investors will now look for debt resolution in Eurozone and
US budget debates for market leads. Market breath stayed negative, with
decliners outpacing advancers 398:322. Future closed 1637 (4 pts discount).
2) Heavyweights: DIGI-1.43% RM4.83, IOICORP-0.8% RM5.01,
MAYBANK-0.33% RM9.02, TENAGA-0.57% RM6.96, PPB-2% RM12.70, IHH-1.54% RM3.20, AXIATA+1.37% RM5.91
3) DBT: AT 10.59mil @ RM0.1813 (5.5% PUC, 9.8% premium),
BJTOTO 10.41mil @ RM4.2126 (4.4% discount,
DESTINI 5.17mil @ RM0.34
4) Situational:
CIMB-0.13% RM7.72: CIMB rose to a high of RM7.76 before
closing weaker as it received final approval from Bank Negara Malaysia (BNM) to
acquire 59.98% of Bank of Commerce in the Philippines from San Miguel
Properties Inc, San Miguel Corp Retirement Plan, Q-Tech Alliance Holdings Inc
and various minority shareholders, just over a month later than targeted. The total consideration for the acquisition of RM881
million will be settled in cash.
5) UNISEM
9months Sept 2012
Tover -7.5% RM822.5m Net
(RM12.8m) EPS (1.9sen)
Cons (f) (RM4.7m)
For the nine months period, the Group's revenue was 7%
lower as compared to the corresponding nine with a decline in revenue in the
Asia and Europe segments of 7% and 42% respectively whilst the USA segment
recorded an increase in revenue of 9%. The Group recorded a loss of
RM13.118 million as opposed to the profit of RM22.229
million recorded in the same period last year. All segments recorded losses for
the nine months period under review. The weaker performance was principally
attributable to lower sales revenue, one-time retrenchment costs of
RM5.7 million arising from an efficiency/redundancy
exercise at PT Unisem, higher depreciation charges and lower foreign exchange
gains
However in the 3Q, the Group recorded a profit of RM8.330
million, a significant increase of 70% as compared to the profit of RM4.890
million in corresponding quarter last year principally attributable to improved
profit margin due to changes in product mix as well as higher gains on foreign
exchange.
4Q is traditopnally quiet due to seasonal inventory
adjustments. The implementation of their new business model (essentially
rationalising our package portfolio and customer profile) is in progress.
We would rather take a wait and see approach on Unisem's
new business initiatives and see if sustained traction can be gained in the
coming months ahead before making an investment decision on a sector that is
generally underweighted.
6) Market - The KLCI could experience a technical rebound
after the violent sell off in particularly the telcos stocks experienced over
the past week. Trading BUY on Digi.
