FBM 1610.83
+3.51pts (+0.22%)
Volume
1,190mil Value RM2,215mil
1) KLCI ended November on a positive note, rising
for the 3rd consecutive days in line with the positive global markets on hope
Germany's lower house of parliament will approve a fresh bailout for Greece
while Japan’s cabinet also approved a US$10.7 billion economic stimulus package
to boost its economy. Index managed to hold on to its gains on mark up of
IHH+8.75% while GENM and Armada was sold down at close. Market breadth turned
positive with advancers leading losers 382:320. Future closed 1607.5 (3 points
discount).
2) Heavyweights: IHH+8.75% RM3.48, GENTING+2%
RM9.00, PETGAS+2.56% RM18.40, PBBANK+0.26% RM15.52, BAT-3.87% RM53.20,
GENM-2.29% RM3.42, ARMADA-4.39% RM3.70, MAYBANK-0.22% RM9.05
3) DBT: GRANFLO 30mil @ RM0.215 (9.4% PUC),
COMPUGT 11.2mil @ RM0.12 (41% Premium), BJCORP 7.5mil @ 0.58
4) Situational:
WTK+4.4% RM0.95: posted a higher net profit of
RM17.24mil, 20% higher y-o-y for 3QFY12 mainly due to a rise in timber sales to
Japan. For the 9 months to September 2012, net profit totaled RM35.06mil while
revenue stood at RM573mil which is a 20% increase.
5) FELDA 9months Tover +62%
RM9.02bn Net -40.3% RM626.1m 17.2sen
9% below cons(f) RM916m
This increase primarily reflects the sales of CPO
by the Group beginning on 1 March 2012, which accounted for 51.8% of the total
revenue. The profit before taxation after fair value changes in LLA liability
margin decreased to 10.0% for the third quarter ended 30 September 2012, compared
to 26.8% for the corresponding period in 2011 due to lower CPO prices from
RM3,330 per MT in 2011 to RM3,107 per MT in 2012, drop in FFB production by
365,326 MT to 3.47 m MT, decrease in contribution from associates of 13.7%,
incurrence of fair value changes in the LLA liability of RM235.7 million, and
one off charges relating to IPO expenses of RM41.5 million. The Sugar segment
registered revenue of RM1,689.2 million, about the same as the corresponding
period in 2011 of RM1,690.0 million. The sales volume decreased by 7% due to
decline in demand from industrial customers as they can now import refined
sugar from overseas, but were offset by the increase in selling price of refined
sugar and Government subsidy. The profit before taxation margin decreased to
21.8% primarily due to an increase in raw sugar costs. The raw sugar purchase
price under the current long-term raw sugar supply contract is higher than the
preceding contract which was in effect in 2011.
4Q numbers will be weaker with CPO pxs now
trading significantly below the RM3000/ MT thus expect downgrades for full year
numbers. Further selling pressure could come from the expiry of the lock up
period for its cornerstone investors which total 689m shares (19.8% PUC) around
24 Dec 2012 (based on 180 days from listing date). Prefer SIME for exposure to
the plantation industry.
6) Market – Tight trading range on the KLCI to be
maintained between the 1600-1620pts. Trading buys on recent stocks hit down
include Gent M, SP Setia, MISC.