FBMKLCI
1808.31pts -5.79pts (-0.32%)
Volume 1.520b Value 2.022b
1) The KLCI rose at the opening after the US market
closed better overnight but quickly dove into negative territory after China's
HSBC flash manufacturing report signalled a contraction in the growth of the
world's 2nd largest economy. In the regional market, major bourses were mostly
lower led by HSI which fell -1.51% today; SHCOMP-0.47% fell for the third day
as money-market rates rose yet again; ASX-1.07% and STI -1.03% closed lower. In
the local market, selling pressure were seen across the board with CONSUMER
index -1.15% losing the most grounds as it was weighed down by ZHULIAN -21%,
BAT -1.96%, XDL -34.09%. Market breadth was negative with losers outpacing
gainers by 544 : 228. Futures closed at 1804 (4 pts discount).
2) Heavyweights: CIMB -2.99% RM6.80, AXIATA -1.06%
RM6.53, BAT -1.96% RM62.00, FELDA -2.01% RM4.38, YTL -1.88% RM1.56, DIGI -0.63%
RM4.73, IOICORP -3.08% KLK +5.08%.
3) DBT: FRB 15mil @ RM0.585 (3.872% PUC @ 50% discount),
IRIS 4.52mil @ RM0.4081, GBGAQRS 4.5mil @ RM1.10 (1.266% PUC), HOHUP 2.282mil @
RM1.23 (1.606% PUC @4.7% discount), DAYANG 2mil @ RM5.65.
4) Situational:-
AFFIN +0.24% RM4.18/ HDBS -6.744% RM4.01 - Affin Holdings
has signed the agreements to acquire 100% of HwangDBS Investment Bank and the
asset management business of Hwang-DBS Berhad for RM1.363bn in total. The deal
will be temporarily funded by a bridging
loan of RM1.4bn. The ultimate financing plan has not been finalised but Affin
stated that it could undertake a rights issue to raise up to a total of
RM1.25bn. Shareholders of HwangDBS can expect to reap a windfall of RM637.9mil
from the sale, with distribution earmarked within three months after the
acquisition closes. This could mean a dividend of RM2.50 per share, based on
HwangDBS' share capital of 255.16 million shares
5) TENAGA : Q1 11/13
Rev+5% RM9.59b, Net +22% RM1.73b, EPS 30.74s
Core
earnings slightly ahead of FY cons RM4.7b (28% of FY).
Q1 YoY, electricity sales was 3% higher, mainly from
sales of electricity in the Peninsula & Sabah (+3.3% & 1.6%
respectively). However, operating profit was 13.4% lower, due to higher
operating expenses incurred during the quarter. Net profit was 22.6% higher,
caused primarily by movements in taxation, being the result of reinvestment
allowances incentives of RM201.7m and the reversal of deferred taxation of
RM188m to reflect the change in the taxation rate from 25% to 24%. Group also
recorded lower translation gain of RM252m this quarter compared to RM397m in
Q12013 due to the weakening of the Ringgit against the Yen. QoQ, electricity
sales was 4% lower, operating profit was 8% lower and group recorded
translation gain of RM252m ( vs loss of RM617m in preceding quarter). These had
significantly contributed to the higher net profit of RM1735m (vs RM219m).
Ahead, MIER had projected a better growth outlook for 2014 of between 5-5.5%.
It is also anticipated that with the implementation of the Incentive Based Regulation
(IBR), it is anticipated that the fuel cost risks are mitigated, therefore
leading to better earnings predictability for TNB.
We sense that sector reforms are panning out well and
this should set Tenaga on a structural rerating path - Accumulate
6) Market: to continue with its current consolidation
with support at psychological KLCI 1800 level as fears of Fed's tapering &
weaker-than-expected China's economic growth draw funds away from the emerging
markets.