FBMKLCI
1803.21pts +0.19pts
(+0.01%) Volume 1.647b Value 2.089b
1) The KLCI swung between a 8pts band before closing flat
following a mixed performance by the U.S market overnight while oil prices
tumbled & Greek concerns mount. In the regional market, bourses were
generally weaker as the SHCOMP -1.18% reversed gains to close lower after the
central's bank unexpected move to cut key lending rate on Wednesday failed to
entice investors, NIKKEI -0.98% also closed lower weighed by heavyweights while
the HSI +0.35% closed flat. In the local scene, TECHNOLOGY index+1.49% gained
the most grounds today led by INARI +2.79% , UNISEM +3.44%, JCY +2.12% while
the O&G names saw healthy profit taking. Market breath was negative with
gainers trailing to losers by 344 : 433. Futures closed at 1799.00pts (4pts
discount).
2) Heavyweights : CIMB +1.598% RM5.74, MAYBANK +1.01%
RM8.92, PBBANK +0.43% RM18.44, TENAGA -0.68% RM14.54, MAXIS -1.11% RM7.07,
SKPETRO -1.77% RM2.77, IHH -1.13% RM5.24, FGV -2.08% RM2.35.
3) DBT: TROP 9.8mil @ RM1.05, NIHSIN 3.3mil @ RM 0.45
(1.39% PUC), DGSB 1mil @ RM0.10
4) Situational:-
MUHIBBAH +1.01%
RM2.00 - Muhibbah has secured a contract worth USD32m (approximately RM116m)
from Tecnicas Reunidas, S.A. Group. The job scope includes design and building
of temporary construction facilities and accommodation camp for Package III in
PETRONAS' Refinery and Petrochemicals Integrated Development (RAPID) project in
Pengerang, Johor, Malaysia. The construction is scheduled to commence in 1Q15
and expected to be completed by 1Q16
5)PBB : FY12/12 Rev+10.5% RM16.9b Net+11% RM4.52b EPS 123.7s
Div 54s
Results
3% ahead of cons RM4.39m, Div in line.
Yoy, PBT was +9.5%, Net +11% mainly due to higher net
interest income +6%, net fee & commission income +8%, lower loan impairment
allowances -26% and higher investment income +18%. These were partially offset
by higher other operating expenses +4%. The growth in the group's net interest
income was driven by continued healthy loans and customer deposit growth,
coupled with sustained strong asset quality as well as positive impact arising
from hike in OPR and rights issue exercise during the year. Gross loans +10.8%,
driven by growth in property financing, passenger vehicles & lending to
SMEs. Deposit +10.2% while impaired loan ratio further improved to 0.6% from
0.7% last year. Qoq, PBT +1%, Net +5.2% due to higher forex income and lower
other operating expenses partially offset by higher loan impairment allowances.
Another strong quarter. PBB's overall asset quality
remained sound, with gross impaired loan ratio amongst the lowest in the
industry. It has bucked the moderating industry loan and deposit trends, with
loans growing at c10% annualized rate vs. the industry at 7%, while deposits
were up c10% annualized vs. industry's 4%. Capital adequacy has been
strengthened following the RM4.8bn rights issue. Management's strategy to boost
non-interest income (via cross-selling in particular) and take measures to
stabilize NIM should remain key re-rating factors in 2015. A potential slowdown
in consumption resulting from the upcoming GST tax implementation is the key
risk, raising concerns over expected margin contractions and the uptick in
credit costs - Accumulate.
GAB : 6mths to 12/14 Rev+11% RM913.9m Net+13% RM130.7m
EPS 43.3s Div 20s
Results
ahead, making up 64% of FY cons RM203.9m
For 6 months yoy, higher Revenue & Net driven by
volume growth, favorable pricing and brand mix. In addition, the group
continues to reap the benefit of measures taken against contraband beers by the
Royal Malaysian Customs and various enforcement agencies. The improvement was
partly offset by higher excise duty and sales tax payments between July &
October 2014. Qoq, revenue +32% and PBT +39%, reflecting the seasonal demand
and better cost management. Ahead, external
environment is expected to remain challenging in the 2nd half of the FY in
light of the spend cuts by the government and the uncertainties surrounding the
implementation of the GST ; Hold.
6) Market : In the immediate term, we view any optimism
in the market to be short-lived. Despite the rebound in crude oil prices,
investors remain cautious on the global economic outlook, and coupled with the
lack of domestic catalysts, the FBMKLCI could likely continue to consolidate
lower ( immediate support at 1790 points).