1) The KLSE retreated at the opening, in line with the
lower regional markets after Japan's industrial production missed estimates
& the US economy unexpectedly shrank in the fourth quarter. The index
traded in the red for most of the day as market searched for leads ahead of the
long weekend, but managed to close relatively unchanged on late buying. The
Technology +0.6% & Construction +0.3% sectors outperformed, UNISEM+3%,
JCY+0.8%, GAMUDA+1.1%, MUDAJAYA+1.6%. Market breath remained negative, losers outnumbering
gainers 411:265. Futures closed 1624 points (3.55 pts prem). .
2) Heavyweight : YTL-2.4% RM1.65, DIALOG-1.7% RM2.31,
POS-1.7% RM3.55, NESTLE-1.6% RM58.40, CARLS+2.4% RM11.88, SKPETRO+2.1% RM2.92,
UEMLAND+1.9% RM2.20, GENTING+1.6% RM9.50.
3) DBT : TECFAST 28.2m @ RM0.08 (18% PUC, 30% disc),
TIGER 12.5m @ RM0.46 (3.4% PUC, 44% premium).
4) Situationals:
PATIMAS +4.3% RM0.12: after it was reported that China
Private Equity Investment Holdings Ltd had acquired a 5% equity in Patimas via
a foreign stockbroker. Sources had earlier said last week that Co was in talks
to rope in a foreign strategic partner to help resolve the fortunes of the PN17
company.
APM -5.4% RM5.62: Co announced that it was teaming up
with Tachi-S (Thailand) Co Ltd to make & sell car seats for OEM in
Malaysia. APM would hold a 60% stake in the JV while Tachi the remaining 40%.
The JC company's initial issued & paid up share capital would be RM3.5m.
Tachi-S is a unit of Japan's Tachi-S Co Ltd,a global automotive seat system designer
& manufacturer. The JV is not expected to significantly impact APM's
earnings for FY12/13, but is expected to generate reasonable return in the
longer term.
5) BHIC: Co annnounced that it's subsidiary BHIC
AeroServices SB (BHICAS) has on Jan 30 2013 received a letter from the Ministry
of Defence Malaysia awarding BHICAS an In Service Support contract for 6 units
of Royal Malaysian Navy helicopters at a contract value of RM32.4m for a period
of 3 years from the date of acceptance of the award. A formal contract will be
signed at a later date; +ve. It is believed that there are several more
military & commercial orders which could materialise for BHIC in 1HFY13.
However, for any rerating of te stock to materialise, the group will need to
demonstrate a more sustainable earnings turnaround, coupled with a consistent
execution record for timely delivery. Stock currently trades at 11x FY13 (vs
stock's historical range of 8-16x).
6) Mkt: cautious lacklustre trading is expected to
persist as market is held hostage by speculation of general election being
announced anytime and the ensuing political uncertainties.
