Market Roundup 140212

FBM30 1566.05, +3.23 points (+0.21%), Volume 2,546.6mil, Value 2,258mil

1) KLCI swung between gains and losses falling to a low of 1560.83 (-1.99pts) in the morning after Moodys expectedly cut the debt ratings of six European countries including Italy, Spain and Portugal. Index however recovered to close at days high led by CIMB+2% and GENM+1.3% while recent penny stock outperformers continued to be under pressure after last week's heavy volume led by NICORP-14%, COMPUGT-15%, TMS-10%. Market breadth was negative with decliners outnumbering gainers 581:321. Futures closed 1559.5 (6.5 points discount)

2) Heavyweights: CIMB+2.09% RM7.31, GENM+1.3% RM3.94, PBBANK+0.29% RM10.54, MAXIS+1.05% RM5.80, KLK-2% RM25.46, TENAGA-0.97% RM6.13, YTL-2.63% RM1.48, AIRASIA-2.13% RM3.68,

3) DBT: CME 19.2mil @ RM0.085 (4.7% PUC, 15% discount) SAAG 3mil @ RM0.08

4) Situationals:

RHB+0.4% RM7.28: Share price generated buying interest in the afternoon session after news reported Aabar Investment is exploring selling its 25% stake in RHB and has engaged in early talks with Sumitomo Mitsui Banking Corp. Aabar paid RM10.80 or 2.25xBV per shares six months ago.

5) Dayang - Announced that its wholly-owned subsidiary, Dayang Enterprise Sdn Bhd, has received a contract from Talisman Malaysia Limited for the Provision of Topside General Maintenance. The Contract value is estimated to be approximately RM125.0 million with the duration of the contract being three years with the option of an extension for two years of one year each. This brings total contracts won to RM210mil ytd with orderbook of RM1.5bn. Trades at PER 11x - Trading Buy

6) Mkt - The current consolidation phase is a good chance for investors who missed out on the initial run up to position themselves in the market as we believe this market remains in a bullish phase. Stocks at buy levels include KEuro, Faber, UEMLand.

Morning Call 310112

FLOWS;

BUYS : UEMLand, DRBHicom, GentingMsia, TM

SELLS : Axiata, MRCB, AirAsia

Technical Stock Alert;

Dayang - Volume build up seen in past two trading days as the stock continues to consolidate around the RM1.90 levels after trending up from RM1.80 in early Jan. Track for a breakout above RM2.00 for a possible RM2.20 mid term target.

Yinson - Stock was sold down to a low of RM1.90 yesterday after touching a recent high of RM2.14 ahead of its ex date on the 3/2/2012 for a 3 Rights : 2 Shares issue at RM1.00 (25sen to be capitalized from its share premium and retained earnings). BUY

Stock of the Day

MMC Corp - (RM2.75)

Name    30-Dec  latest  YTD Change

DRB     2.04      2.78      36.27%

POS     2.59      2.87      10.81%

TWSPLNT 4.34      4.88      12.44%

ZELAN   0.37      0.42      13.51%

MMC     2.77      2.80       1.08%

TWS    10.04     10.06       0.20%

BERNAS  3.12      3.10      -0.64%

- Major recent underperformer in the Syed Mokhtar stable.

- Possible short term catalyst to ignite excitement in the stock could come from the unlocking of value in the listing of Gas Malaysia and possibly Malakoff and Johor Port at a later stage. MMC's 41.8% stake in Gas Msia could potentially be worth at least RM1.3bn.

- The MMC/Gamuda JV is the leading contender to secure the KL MRT tunneling project, potentially worth RM8bn.

- Recently the group has also been linked to a bid for KTMB.

- Buy for a breakout above RM3.00 for an immediate target of RM3.50.

Market Roundup 180112

FBM30 1517.38, -1.98 points (-0.13%), Volume 1,490mil, Value 1,599.8mil

1) KLCI was lower after World Bank cut its global growth forecast by the most in three years as probable recession in the euro region threatens to exacerbate a slowdown in emerging markets. Market was also drifted lower after Fitch said Greece would probably default in March resulting in profit taking among heavyweights which saw index reach a low of 1513.38pts (-5.98pts) before late push up of MAYBANK, GENTING, and RHBCap salvaged 4 points at close. Broader market was mixed with advancers edging decliners 368:364. Futures closed 1516.5 (1 point discount).

2) Heavyweights: TENAGA-2.09% RM6.10, AXIATA-1.22% RM4.87, CIMB-0.7% RM7.11, AMMB-1.03% RM5.78, TM-1.04% RM4.75, PCHEM+2% RM6.64, PBBANK+0.45% RM13.24, YTL+2.04% RM1.50

3) DBT: DBE 12mil @ RM0.08, OLDTOWN 5mil @ RM1.22

4) Situationals:

BPURI+1.64% RM0.93: its subsidiary Bina Puri Pakistan (Private) Ltd has entered into a concession agreement worth RM864m with the National Highway Authority of Pakistan. The agreement is for the construction of the 136km four-lane Karachi-Hyderabad superhighway (M-9 highway) on a build-operate-transfer basis. The concession period is for 28 years and the construction, upgrading and rehabilitation of the motorway are expected to be completed over 30 months.

BRAHIMS+0.7% RM0.72: Share price of BRAHIMS which has risen 50% YTD, announced that the Company will subscribe for an up to 60% equity interest in Admuda Sdn Bhd (Admuda) for a consideration of up to RM20m to be satisfied via a combination of cash and issuance of the Company's shares. Admuda holds a licence from the Ministry of International Trade and Industry (MITI) to operate as a licensed manufacturer of refined sugar and molasses in East Malaysia.

5) Dayang - announced acquired and taken delivery of an offshore accommodation workboat named Dayang Topaz. Expected but +ve as adds to current fleet of 7 which is fully utilised. Enhances chances of RM3bn bids for 2012 to add to current orderbk of RM1.4bn which can last till 2016 (mainly from Petronas Carigali RM800m). Co recently acq 10% Perdana which is synergistic as adds another 8 vessels to fleet. Trades at PER 11x-Trading buy.

6) Mkt - consolidation above 1500pts as vol quietens down ahead of long wkend. Stks at attractive buy lvls: Pos, MAS, Integrax, Timecom, MRCB, Perdana.

Market Roundup 170112

FBM30 1519.36, +10.3 points (+0.68%), Volume 1,443.9mil, Value 1,787mil

1) A slightly-better-than-expected 4Q growth in China (8.9% vs cons 8.7%) eased fears of a hard landing and bolstered expectations of easier monetary policy igniting some buying interest which kept the key regional markets firmer (HSI+3.2%, STI+2.2%, SHCOMP+4.2%), including KLCI. Gains in select blue chips (GENTING+4.2%, UEMLAND+2.2%, TENAGA+1.8%, AMMB+1.4%) pushed the index higher in the afternoon session to offset yesterday's losses. Market focus was on Proton(+4.4%) as Khazanah announced it was divesting its 42.72% Proton stake to DRBHicom(-3.2%) for RM5.50/share or RM1.291bn cash. Broader market was healthy with advancers outpacing decliners 433:330. Futures closed 1522(3pt premium)

2) Heavyweights: GENTING+4.2% RM11.00, MAYBANK+1.2% RM8.29, TENAGA+1.8% RM6.23, PCHEM+1.2% RM6.51, AMMB+1.4% RM5.84, PBBANK+0.3% RM13.18, KLK+1.1% RM24.64, SIME+0.2% RM9.10, CIMB-0.4% RM7.16, MMCCORP-1.8% RM2.68

3) DBT: MENANG 10mil @ RM0.23, Y&G 7mil @ RM1.00, FUTUTEC 3.5mil @ RM0.60

4) Situationals:

DAYANG-2.6% RM1.89: Shares gained as much as 2.1% (RM1.98) before profit taking set in after company's unit DESB Marine Services Sdn Bhd has received a letter of award from Nautika Sdn Bhd for the extension of time charter of its work boat to Brunei Shell Petroleum Company Sdn Bhd. Dayang said the contract extensions will be effective from March 1, 2012 until Oct 31, 2016, and is valued at about RM85m.

5)TNB - 1Q11/11 rslts T/over RM8.7bn +13%, Net loss RM224.7m v RM716.5m profit, EPS (4.1sen)

Annualised concensus RM2.6bn, 48.9sen (ex EI forex loss still 70% below cons)

Turnover improved driven by higher elect demand in P. Msia of 3.9% and elect sales grew 0.8% qoq. QoQ rslts showed imporovement as recorded lower loss compared to previous 4Q11 (RM453m) although operating expenses increased 29% (yoy) on continued usage of oil and distillate resulting in 76% lower (yoy) operating prof of RM297.5m. EBITDA margin was lower at 15.1% against 28.5% in 1Q11 from higher usage of alternative fuels. Co recorded forex loss of RM420m v (RM106m) previously as USD, Yen strengthened against RM this qtr.

Outlook for the year remains challenging despite expectations of electricity demand growth of 4-5% as generation cost.

Comment: Expectations of easing coal prices as demand from China slows, Melaka regassification plant coming onstream by Jul this year will ease cost generation pressure as well as possible rerating catalyst upon resolution of tariff rebalancing review. BOW

6) Mkt - continue to trade rangebound as buying interest rotates amongst sectors and stocks. Any weakness is a buying opportunity for Pos, MAS, Sime, TNB, MISC.