FBMKLCI
1810.11 +0.39pts (+0.02%) Volume 1.921b Value RM1.941b
1) The KLCI closed flat inline with the mixed US market
as investors await for the April FOMC minutes and Yellen's speech later this
week for more hints of the next rate hike. In the regional scene, bourses were
mostly mixed as HSI -0.39% fell on weakness in Chinese oil majorsl, NIKKEI
+0.85% and SHCOMP +0.65% gained marginally while the ASX -0.09% closed flat. In
the local scene, TECHNOLOGY +0.65% index gained the most grounds boosted by
UNISEM +2.34%, MPI +2.35%, VITROX +2.45% attributed to the weaker Ringgit.
Market breadth was negative with gainers edging losers by 413 : 314. Futures
closed at 1808 (2pts discount).
2) Heavyweights : TM +2.56% RM7.60, KLK +1.54% RM22.40,
MAYBANK +0.32% RM9.37, PCHEM -1.27% RM6.21, SKPETRO -2.21% RM2.65, DIGI -0.83%
RM5.95, GENTING -0.78% RM8.88, AXIATA -0.44% RM6.72.
3) DBT: SKPRES +1.00% RM1.01, TMS 5.4mil @ RM0.065,
YHNPROP 1.798mil @ RM2.00
4) Situational:-
PMETAL -2.43%
RM2.80 - Press Metal Bhd announced that a fire incident had occurred at its
smelting plant in Samalaju, Bintulu on 17 May (Sunday). The company told the
exchange that it is unable to ascertain the cause of the fire or estimate the
full impact and consequences of the incident. Nevertheless, the company said
that preliminary findings suggest that the impact on the group's earnings is
not expected to be substantial.
5) CIMB
1Q Mar 2015
Tover +4% RM3.68bn Net -46%
RM580m EPS 6.9sen
43%
below cons(f) RM4.04bn
1Q15 operating income grew 4.0% Y-o-Y to RM3.680 billion
underpinned by a 4.7% expansion in net interest income and a 2.5% growth in
non-interest income. Operating expenses were 6.3% higher Y-o-Y on the back of
increased personnel expenses, bringing about a 1.0% improvement in the Group's
PPOP. However, the Group's PBT declined by 28.3% to RM1.026 billion owing to
the higher corporate loan provisions from Indonesia. The Group's regional
Consumer Bank PBT increased by 11.2% Y-o-Y in 1Q15 to RM437 million, making up
43% of Group PBT while regional Commercial Banking PBT was 18.1% higher Y-o-Y
at RM196 million on the back of solid asset growth and Regional Wholesale
Banking PBT declined by 56.6% Y-o-Y to RM293 million attributed to increased
Corporate Banking provisions and softer Treasury Markets.
Non-Malaysian PBT contribution to the Group was lower at
20% in 1Q15 compared to 38% in 1Q14, principally due to the 89.4% Y-o-Y decline
in Indonesia's PBT to RM45 million from lower CIMB Niaga earnings. The Group's gross
impairment ratio rose to 3.2% as at March 2015 from 3.1% in March 2014, with a
higher allowance coverage of 84.2% as at March 2015 while Net Interest Margins
were lower at 2.65% vs 2.87%.
Prospects this year will be along the lines of
implementing its new T18 plans and key organization changes, with a mid-term
target of achieving an ROE of 15%, CET1 ratio of over 11%, a cost to income
ratio of below 50% and a 60% consumer banking income contribution by end-2018.
Sales Take : As there are no strong rerating catalyst at
the moment, we prefer Maybank as our main exposure to the banking sector.
6) Market - Expectations for the 11MP presented by the PM
tomorrow to hopefully add some life into the current range bound market with
the construction giants IJM and Gamuda the likely main beneficiaries.