FBMKLCI
1808.42 -1.58pts (-0.09%)
Volume 1.373b Value RM1.963b
1) The KLCI was trading between a tight 3 pts band as the
US market closed below on the back of mixed results overnight. In the regional
market, bourses were negative as HSI -0.31% and SHCOMP -0.60% stocks slipped
even though China's government announced some measures including speeding up
railway construction to stimulate the economy. In the regional market,
Technology Index loss the most grounds weighed down by JCY -3.42%, UNISEM
-4.95%, GPACKET -2.77% after Unisem's came in weaker than expected. Market breadth
was negative with losers leading gainers by 445:312. Futures closed 1812.5 (4 pts premium)
2) Heavyweights : PBBANK -0.34% RM17.28, UEMS -2.61%
RM2.98, UMW -1.10% RM14.28, MAYBANK -0.18% RM10.72, HLBANK -0.97% RM14.26, MISC
+1.96% RM5.72, PPB +1.19% RM15.20, CIMB +0.23% RM8.56
3) DBT : CSL 20mil @ RM0.30 (1.60% PUC @ 9% premium),
MINETEC 5.2mil @ RM0.165 ( 1.71% PUC), PRTASCO 5mil @ RM1.30 (1.52% PUC)
4) Situational:-
PRKCORP Parity RM2.79 - Share price feel to a low of
RM2.69 before recovering after it reported that it has not received any
proposals from any parties in respect of any potential privatisation or reverse
takeover exercise. Perak Corp added that it was not involved in any discussion
about such corporate exercises.
5) BAT
1H June 2013
Tover +6.7% RM2.25bn Net
RM415m EPS 145.4sen
In line
with cons(f) RM826m
In the 1H BAT strengthened its market leadership with 1%
growth to register 61.5% share of the legal market, driven by Dunhill +1.7% YOY
but rest of the aggregate portfolios saw a 0.6% decline. Dunhill was driven by
its core range and new variants including Dunhill Switch and Dunhill Lights.
As a result of contact manufacturing vol and margin, BAT
registered 6.7% revenue growth YOY. But contract manufacturing margins which
are significantly lower than domestic and duty free had a net effect on
weakening the mix thus the flattish net performance.
The company has also decided to cease domestic leaf
operations and source from overseas as a result of persistent flooding which
will result in a one time cost of cessation of RM13m in 2013.
It declared an interim div of 68sen bringing 1H payout to
RM1.36 and on track for a full year div of RM2.78 or 4.5% yield. Hold
6) Market - As the KLCI struggles to breach the all time
high mark of 1826, we could see a pull back to around the 1780pts levels. On
the back of this expected scenario we are recommending take profits on selected
blue chip outperformers such as Axiata, Maybank, UMW, AmBank, KPJ