Thursday, December 13, 2012

Market Roundup | 12 Dec 2012

FBM 1649.75  +8.18pts (+0.50%)      Volume  950.48mil    Value RM1,773mil
 
1) KLCI rallied for the 7th consecutive days its longest streak since early Oct as regional markets rose on optimism of more monetary stimulus from the US Federal Reserve tonight. Eurozone debt situation eased after news reported Greece drew enough bonds to its buyback of sovereign debt to meet a target necessary to obtain further aid from the IMF and EU. Market breadth was positive with gainers leading decliners 356:289. Future closed 1653.5 (4points premium).
 
2) Heavyweights: DIGI+2.04% RM5.00, AXIATA+1.1% RM6.40, PBBANK+0.63% RM15.90, TM+2.11% RM5.80, PCHEM+1.50% RM6.11, PETDAG-3.57% RM22.68, GENM-2.02% RM3.39
 
3) DBT: TENAGA 60mil @ RM6.78 (1.08% PUC, 2.45% discount), BJCORP 10mil @ RM0.55 (1.85% discount), PRTASCO 4mil @ 1.20 (12% premium)
 
4) Situational:
DRBHCOM+0.41% RM2.44: DRB-Hicom's Proton has signed an agreement to buy all engine technologies and knowledge developed by Petronas since 1997 at RM63mil. Proton will have immediate ownership of a more powerful yet fuel-efficient, naturally aspirated and turbocharged 2.0 litre- and 2.2 litre-engines. To be exact, Proton is taking over seven engine technologies with 117 technology patents from Petronas.
 
5) SP Setia: FY10/12 Rev+13% RM2.53b Net+20% RM393.8m EPS 20.51s Div 14s
 
     Results 9% above cons RM360.1m
For the current FY, the group achieved PBT of RM567m, representing a 32% increase over the preceding year. Gross profit margins rose to 34% from 28% LY. On the Property Development segment, Rev+17% while PBT+37% (higher revenue recognition from residential & commercial properties in Klang Valley, Johor Bahru & Penang. PBT increased by a higher margin from group's success in steadily increasing the selling prices through value creation). On Construction segment, Rev-31%, PBT-25% due to the completion of the Kementerian Dalam Negeri contract in Setia Tropika, JB in the previous FY. Qoq, PBT+33% due to higher profit contribution from residential & commercial properties in Klang Valley, Penang & JB. For FY12, the group achieved total sales of RM4.23b, a 29% increase from RM3.29b LY. Co has set a new sales target of RM5.5b for FY13.
 
As at end FY2012, Co has 21 ongoing projects & several new projects to be launched in FY2013. Most significantly, it targets to launch it's iconic Battersea Power Station JV project in early 2013. Despite minimal downside risk, the planned private placement, potential project risk from the Battersea development & cautiousness ahead of the upcoming GE may capped its price in the short term. BOW
 
6) Mkt: expect the KLCI to consolidate after its recent sharp rally and on approaching resistance levels.