FBMKLCI 1621.36
-6.28pts (-0.39%)
Volume 777mil Value RM1,490mil
1) Regional markets including KLCI fell sharply after a
radical bailout plan for Cyprus was proposed including an unprecedented levy on
private bank deposits in Cyprus in exchange for a financial bailout. Index fell
for the 5th consecutive days and reached a low of 1613.94 (-13.70pts) in a
lightly traded market. Market breadth was negative with decliners trouncing
advancers 486:219. Future closed 1617.5 (4points discount)
2) Heavyweights: TENAGA-2.39% RM6.93, YTL-4.76% RM1.60,
DIGI-1.56% RM4.40, FGV-3% RM4.50, PCHEM-1.41% RM6.28, SIME+1.78% RM9.16,
IOICORP+1.50% RM4.72, UMW+2.94% RM13.30,
3) DBT: 2.5mil @ RM1.80, YNHPROP 2.1mil @ RM1.86
4) Situational:
AIRASIA-2.89% RM2.69: Airasia was weaker today after news
reported Malindo Air will receive its third aircraft next week and another 10
will be received by year-end. The airline targets to have 100 aircraft by 2023.
CEO Ramamurthy said the airline will add more destinations soon and it will
also start its international flights this year. The ticket sales to Malindo
Air's two destinations have been encouraging.
5) PUBLIC BANK
At today's AGM, the bank guided for a similar dividend
payout in 2013 vs last year which amounted to RM1.75 billion, a total payout of
45.3 per cent of the group's net profit for 2012. It also had no plans for
dividend reinvestment or capital share-buy back.
Domestic lending would remain focus on home mortgages,
vehicle financing and lending to small and medium enterprises whilst
maintaining its prudent lending policy and credit risk culture to sustain its
strong asset quality. While its overseas business would continue be
concentrated regionally, particularly in Hong Kong and Indochina markets.
Investors continue to question the group's succession plan with its two
Chairman now well past 80 years old.
6) Market - Renewed fears of contagion in Europe has
given investors an excuse to take profits in global markets which have enjoyed
a strong run in 2013. This will further drive Malaysian investors back to the
side lines and could see the KLCI continue its uninspiring performance thus far
in 2013.