FBMKLCI 1624.18
-3.17pts (-0.19%)
Volume 801.4mil Value RM1,368mil
1) KLCI fell inline with global markets as market
sentiment turned negative on concerns over a possible hung Parliament in Italy
which raise the likelihood of Eurozone debt woes resurfacing. Investors were
also worried China might tighten monetary policy and curb rise in property
prices. Market breadth turned negative as decliners edged advancers 339:311.
Future closed 1621.5 (2.5points discount)
2) Heavyweights: IOICORP-1.79% RM4.93, GENTING-0.93%
RM9.55, GENM-2.19% RM3.57, PPB-2.09% RM12.20, AXIATA-0.32% RM6.33, DIGI-0.44%
RM4.56, PBBANK+0.63% RM15.92, BAT+1.22% RM58.30
3) DBT: ARREIT 12.4mil @ RM0.93 (2.16% PUC), BJMEDIA
12.1mil @ RM0.45 (5.19% PUC), BJCORP 5.066mil @ RM0.54, ALAQAR 5mil @ RM1.25
(3.8% discount)
4) Situational:
AIRASIA-1.12% RM2.64: Malindo Air has received the air
operators licence from the Malaysian government to operate in the country.
Malindo can now start selling tickets for its low fare operations. It will
start flying at end-March. Malindo is 51% owned by Nadi and 49% by PT Lion
Grup, the parent of Indonesia's privately-owned airline, Lion Air, which in
turn controls about half of the Indonesia domestic air travel market.
5) IJM : 9 mths 12/12 Rev+3% RM3.41b Net+9% RM356.5n EPS
25.8s Div 4s
Results in line with cons RM476m
For 9-months yoy, Revenue +3% with significant growth in
Construction+16%, Property+8% & Infrastructure+13%. However, this was
mitigated by lower revenue in Plantation-22% & Industry-10%. The Group's
PBT increased marginally as the Construction & Property division recorded
profit growth of 138% & 17% respectively. Higher earnings in Construction
mainly due to improved construction margin & higher contribution margin
from the group's JV projects. Plantation earnings fell 37%, due to lower sales
volume & prices of CPO & PKO.
Price for CPO & PKO were 23% & 31% lower during the period. Movements in foreign exchange also resulted
in unrealized losses of RM16.5m, compared to an unrealized loss of RM40.4m LY.
Qoq, PBT-4.8%, attributable to unrealised forex loss of RM8.3m ( gain of
RM22.8m in preceding quarter) & lower plantation profits due to decline in
CPO prices of 22%. Ahead, the Construction division expects to perform as OB
replenishment remains encouraging. Property division expect to remain strong, underpinned
by strong unbilled sales exceeding RM1.4b. However, Plantation division expects
lower profitability as local crop production is expected to decline during the
last quarter, coupled with low palm produce prices.- HOLD.
6) Mkt: Weaker European markets coupled with election
uncertainties will see investors continue to remain side lined and the KLCI
possibly retesting the recent low of 1600pts.