FBMKLCI
1707.35 +6.96pts
(+0.41%) Volume 734.4mil Value RM1,377mil
1) KLCI rose in tandem with regionals as markets gained
boosted by expectation that ECB would be forced to act to stimulate the
European economy after weak economic data in Euro region. Positive earnings in
US and better than estimated new home sales also encouraged participation in
riskier assets. Index ended at day's high after IOI and KLK were pushed up at auction.
Market breadth turned positive with advancers leading losers 344:294. Futures
closed 1707.5pts (parity).
2) Heavyweights: IOICORP+2.42% RM5.08, GENTING+1.6%
RM10.16, KLK+1.88% RM21.70, PCHEM+1.09% RM6.50, AMBANK+1.22% RM6.60,
PBBANK+0.25% RM16.38, PETGAS+0.7% RM19.40, DIGI-2.16% RM4.54
3) DBT: LIONIND 62.038mil @ RM1.40 (8.64% PUC, 42.8%
premium), SUNWAY 10mil @ RM2.92 (0.7% PUC, 2% discount), MTRONIC 9.96mil @
RM0.10 (1.5% PUC)
4) Situationals:
COASTAL+1% RM2.03: bagged contracts worth a combined
RM434 million to build seven offshore support vessels (OSVs) and two oil
barges. Including the new contracts and after adjusting for revenue recognition
from vessels delivered to buyers up to 23 April 2013, Coastal said it has about
RM720 million worth of vessel orders awaiting delivery to customers up to 2014.
5) Unisem
1Q Mar 2013
Tover -2.7% RM249.7m
Net loss (RM10.3m) Eps (1.45sen)
Versus consensus
(f) RM24.4m profit
Co still recorded a loss despite a mild turnaround in its
European and USA segments as still dragged down by further losses recorded in
Asia business. Group recorded net loss of RM10.283 million as compared to net
loss of RM13.686 million as there is absence of one off retrenchments costs and
impairment charges recognised in 2012 of RM22m and rationalization of certain
low margin/unprofitable products has helped to improve the gross profit margin.
Yoy revenue fell 2.7% on lower sales vol with a decline of 4.5% in the Asia
region while Europe and US saw increase of 146.7% and 1.6% respectively.
Qoq, Group reported a Loss after tax of 10.28mil compared
to a core net profit of RM1.2mil in the 4Q after excluding exceptional items.
This stem from seasonal factor as well as lower revenue which fell 7.3% Qoq
versus company guided 5% drop.
Despite another weak set of earnings we believe sector
could be on the recovery as 1Q is traditionally the weakest quarter. SIA has
also reported a 2.8% increase in sales for the sector while Book-to-bill ratio
stood at 1.10x which is above 1.0 indicating sector is on the mend. Trading Buy
on the back of group's rationalisation plans and recovery of semicon sector as
stk has retraced back to its recent trough levels.
6) Mkt - quieter ahead of impending GE13 as investors
stay mainly sidelined. Any push towards the end of the month for window
dressing activity provides opportunity to lock in profits ahead of 5th May to
reduce risk. KLCI will trade in 1680-1720pt range.