FBM 1652.75
+3.00pts (+0.18%) Volume 881.12mil
Value RM1,538mil
1) KLCI extended its gains, reaching a high of 1656.62
(+6.87) in morning after US Federal Reserve expanded its bond buying program by
a further US$45bn. However market saw some profit taking following recent
record rally, dipping below overnight levels before late buying of GENTING, KLK
ensured index gain for the 8th consecutive days. Plantation+0.43% despite
seeing CPO falling to a new three year low of RM2217/MT on slower exports for
first ten days of December. Market breadth turned negative with decliners
leading gainers 365:304. Future closed 1650.5 (2points discount).
2) Heavyweights: AXIATA+2% RM6.53, GENM+2.06% RM3.46,
DIGI+0.6% RM5.03, KLK+0.94% RM21.58, SIME-0.65% RM9.14, CIMB-0.4% RM7.57,
YTL-1.60% RM1.84, AIRA-2.52% RM2.71
3) DBT: HUBLINE 16mil @ RM0.065 (0.5% PUC, 8.3% premium),
AIRB 9mil @ RM1.80 (3.4% PUC)
4) Situational:
AXIATA+2.03% RM6.53: Axiata announced it will be
acquiring 100% stake in Glasswools Holdings Ltd for USD$155mil. Glasswools holds
100% in Latelz, which runs Smart Mobile in Cambodia. Axiata intends to merge
the operations of Smart Mobile with Hello which will see them holding 90% of
the merged entity and emerge as one of the largest operator in Cambodia.
5) TOPGLOV: 1Q
11/12 Rev+5% RM584.58mil Net+83%
RM57.49m EPS 9.29
Results 3% ahead of cons RM223.5m
Top Glove reported an 83% rise in first quarter net
profit from a year earlier largely attributed to the continuing increase in
demand, improved operations efficiency and lower raw material prices. Natural
rubber latex prices had fallen from an average of RM8.34/kg in 1QFY2012 to
RM5.83/kg in 1QFY13 while nitrile prices declined from US$2.06/kg in to
US$1.42/kg resulting in higher profit before tax margins at 12% versus 7.5% a
year earlier.
QoQ, Revenue was -3.7% despite higher quantity of gloves
sold due to lower selling prices. PBT was 5.6% higher while net profit saw
contraction of 10.5% mainly attributed to a lower taxation figure in 4QFY2012
on write-back of tax overprovision coupled with recognition of deferred tax
asset
Looking ahead, Top Glove said it expects natural rubber
and nitrile prices to stay at current levels in the near term on anticipation
of a decline in demand from tyre makers. This comes against firm demand for
gloves as the product is deemed a necessity in the healthcare sector. Top
Gloves Capacity will increase 12% by FY13 to 44.8bn pcs pa. BOW
6) Market: expected to consolidate on tussle of opposing
forces - main funds continuing to window dress while the recent sharp bounce is
tempting sellers to surface.