FBMKLCI
1876.62 +4.96pts (+0.27%)
Volume 1.240b Value 2.089b
1) The KLCI bucked the regional trend rising for a 3rd
consecutive day despite the flattish US market overnight. In the regional
market, bourses were weaker as the HSI -0.30% and SHCOMP -0.47% fell despite
newly announced reform policies supported the healthcare sector; the NIKKEI
+0.07% however closed flat today just before the release of important US data
tonight. In the local scene, the KLCI was boosted by heavyweights, AXIATA
+1.17%, PBBANK +0.68%, IOICORP +1.82% as continue to creep towards its recent
high of 1889pts. Market breadth was generally positive today as gainers
outpaced losers today by 425 : 349. Futures closed at 1879.5 (3 pts premium).
2) Heavyweights : AXIATA +1.17% RM6.90, PBBANK +0.68%
RM20.62, IOICORP +1.82% RM5.03, SKPETRO +1.21% RM4.17, MAXIS +1.05% RM6.68,
PETDAG +2.44% RM25.10, MAYBANK +0.40% RM9.98, PETGAS -1.88% RM24.00.
3) DBT : RAYA
10.696mil @ RM0.20 (9.02% PUC), MAYBANK 4.52mil @ RM9.97, ELSOFT 2.48mil @
RM0.80 (1.37% PUC).
4) Situational:-
E&O +4.20% RM2.48/ SIME -0.52% RM9.50 - Sime Darby
Bhd has reduced its stake in Eastern & Oriental Bhd by 9.9% by selling it
to Morning Crest Sdn Bhd for MYR319.0m, or RM2.90 per share. Morning Crest is a
company substantially owned by Datuk Terry Tham Ka Hon. Upon completion of the
proposed disposal, Sime Darby's stake in E&O will be reduced to 22%.
5) MAYBANK
1Q 2014
Turnover + 2.93% RM8.357bn
Net +6.33% RM1.602bn EPS 18.09
sen
In line with cons(f) RM6.552bn
Maybank's net profit rose 6% in the first quarter from
higher loans and financing growth, particularly from its Islamic banking
operations which increased 30.5% YoY, contribution from insurance/takaful
business which turnaround from a loss position and a larger writeback of
impairment losses on financial investments. These were offset by a lower net
interest income and a higher loan provision from a higher collective allowance
("CA") resulting in the CA increasing to 1.10% as at 31/3/14 from
1.06% as at 31/12/13.
Net interest income fell 1.6% on year to RM2.39bn.
Meanwhile, non-interest income slipped 9.7% to RM1.23bn mainly due to a decline
in investment banking and treasury activities in the quarter.
Net interest margin, a measure of profitability from
lending activities, fell to 2.37% at March-end compared with 2.38% in December
and 2.49% during the same quarter a year earlier.
Maybank, set targets of 15% return-on-equity and 13%
loans growth for 2014. Management expects "stronger momentum" in
earnings for the rest of 2014, and remained focused on achieving targets for
the year.
Trading at FY14 PER of 13.1x and p/bk of 1.78x,
accumulate on weakness.
6) Market: trading volatility is expected to increase
substantially tomorrow with the MSCI rebalancing.
