Market Roundup | 18 April 2013

 FBMKLCI  1706.26           -4.71pts (-0.28%)             Volume  779.79mil          Value RM1,668mil

 1) KLCI saw subdued trading as index fell to a low of 1704.32 (-6.65pts) as regional markets were weaker inline with DOW overnight on concern about slower growth in China. Index managed to pare its losses by midday before late mark down of Maybank and GENTING saw index dip 3 points at auction. Market breadth was negative with decliners leading gainers 413:271. Futures closed 1702.5pts (4pts discount).

2) Heavyweights: GENTING-1.75% RM10.08, CIMB-0.77% RM7.70, GENM-1.86% RM3.70, TENAGA-0.50% RM7.95, IOICORP-0.59% RM5.09, UEMLAND-2.47% RM2.76, ARMADA+2.28% RM4.03, MAYBANK+0.21% RM9.65

3) DBT: GLOTEC 109mil @ RM0.065 (2.07% PUC), GOCEAN 12.2mil @ RM0.255, DIJACOR 2mil @ RM1.50

4) Situationals:

HIBISCUS-2.05% RM1.43: Associate company Lime Petroleum has agreed to acquire equity positions in 6 production licenses from North Energy ASA for USD4.9mil. The completion of the transfer is conditional upon the approval of the Ministry of Petroleum  and Energy and the Ministry of Finance in Norway.

5) TNB

1H Feb 2013  Tover +3.8% RM17.98bn    Net RM2.69bn   EPS 48.7sen

           Excl forex gain, 5.5% above cons (f) RM3.6bn

Higher turnover driven by 4.6% electricity demand growth in Pen Msia mainly from commercial sector. Overall operating expense fell 5.4% with fuel cost falling 9.5% YOY due to lower coal px (USD84.6/mt vs USD109.3/mt) and decreased oil utilisation. The RM strengthened 15.8% vs Yen during the period resulting in forex translation gains of RM786m. The company declared an interim div of 10sen. Foreign shareholding has steadily risen from a low of 10% in 2009 to 18.71% present.

Track for a possible tariff hike post election as the Government is likely to gradually remove the gas subsidy.

 

6) Market - Current trend remains with foreign buy flows continuing to support the market due to the traditional defensive nature of the KLCI and relative underperformance to the region YTD.