Friday, March 1, 2013

Market Roundup | 28 Feb 2013

FBMKLCI 1637.63      +13.49pts (+0.83%)           Volume  1,010mil         Value RM1,976mil
1) KLCI erased Feb losses and closed at a 1 month high as key heavyweights led by CIMB and PBBANK were firmer inline with the positive regionals (HSI+2%, SHCOMP+2%) as markets rallied given recent slew of positive economic data from the US. Investors will now look ahead if US could avoid automatic spending cuts due to kick in by 1st March. Market breadth was positive as advancers outpace decliners 394:283. Future closed 1635.5 (2points discount)
2) Heavyweights: CIMB+1.27% RM7.20, PBBANK+0.88% RM16.12, UMW+4.07% RM12.80, BAT+4.74% RM61.00, GENM+3.64% RM3.70, AXIATA+0.95% RM6.40, PCHEM+1.60% RM6.35, GENTING+0.74% RM9.49
 
3) DBT: SEG 2mil @ RM1.70, NAKA 1.725mil @ RM0.50 (3.11% PUC)
 
4) Situational:
UMW+4.06% RM12.80: Company recorded a surge in net profit to RM951mil compared to RM465.2mil in 2011 with all four core business segments recording better profits for the year. News reported company has hired investment banks to facilitate IPO for its O&G division slated for 2H. The group has also taken delivery of NAGA-4 which will be revenue-generating.
 
5) Alam Maritim: FY12/12 Rev+63% RM502m Net+341% RM60m EPS 7.6s
Results 16% ahead of cons RM51.6m
 
For FY, group recorded Revenue growth of 63%. Rev from OSV segment was lower by 13% due to lower revenue received from owned & third party vessels. This was more than compensated by higher revenue derived from Subsea Services / OIC segment which soared 847%, with contributions coming from OIC contracts namely SOGT, projects awarded by Samsung Engineering  and E8 & F13K Modules offshore facilities transportation & installation contract. PBT +270%, with the increase in OSV segment +411% coming from increased share of results of associates & JV entities, while PBT from Subsea/OIC segment+185% ( boosted from contribution margin derived from OIC contracts. Qoq, Rev+44%, PBT+16%. Prospects for Alam remain bright with the significant capital & operating expenditure budget announced by Petronas & other oil majors, but this will be negated by margin compression arising from consolidation amongst domestic players & emergence of new players.
 
6) Mkt: Unchanged range bound trading to continue with elling likely to re emerge around the 1650pts levels as funds lighten up ahead of uncertain election outcome.