News Bits | 1 Nov 2012

Highlights of the day

§  Economics (Money and Banking): September 2012: Loans growth may be bottoming out [download report]

Overall loans growth slowed for a second consecutive month to 11.9% y-o-y in September from 12.3% in August. Yet again, the slowdown was brought upon by slower business loans growth. Business loans growth slowed mainly due to weaker demand growth from the real estate and financial services sectors. The good news was that loans indicators improved significantly from last month to suggest that loans growth may halt its slowdown soon. Meanwhile, M3 also grew slower at 12.5% y-o-y from 13.9% but the monetary base grew stronger. Finally, we do not expect the MPC to change the OPR. (refer to report for details)

 

Reports

§  Newz Bits [download report]

 

Other Malaysian news

§  Axiata: XL’s revenue driven by data

§  TNB: Sees higher profit due to hike in demand

§  FGV:  Genting not shareholder, never given shares

§  MAHB: Offered stake in Indian airport

§  MAS:  Ethiopian Airlines plans major tie-up

§  LPI Capital: Refutes M&A speculation

§  Tan Chong: Car price war in the pipeline

§  Dijaya: Rakes in RM38m gain from land sale

§  KNM Group: To secure financing for Peterborough project

§  CI Holdings: Eyeing power assets, new business

§  Port: Samalaju Port ready by 1Q2016

§  Economy: September PPI declines 1.2% to 127.3

 

Global news

§  US: Fed says banks saw rising demand for auto and mortgage loans

§  US: Wage costs rise cool as employers hold line

§  US: Chicago Business Index increased to 49.9 in October from 49.7

§  Europe: Greece deepens budget cuts as it forecasts Steeper 2013 slump

§  Taiwan: Economy recovers as exports improve on Chinese demand

  

 

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Market Roundup 130212

FBM30 1562.82, +1.16 points (+0.07%), Volume 2,661mil, Value 2,119mil

1) Despite the welcomed news of the Greek Parliament had passing the unpopular austerity bill to secure a second bailout package, the KLCI remained subdued which saw  lackluster trading with index remaining in a tight 5 points range before closing marginally higher. Plantation names led the gainers list as KLK+2%, UTDPLNT+2.3%, HSPLNT+2.4% while profit taking dominated proceedings as recent out performers were sold down: DRBHCOM-3.7%, NICORP-16.4%, LONBISC+4.3%. Market breadth turned negative with losers thumping gainers 517:364. Futures closed 1558.5 (4 points discount)

2) Heavyweights: GENTING+1.9% RM10.50, TENAGA+1.3% RM6.19, KLK+2% RM25.98, YTL+2.7% RM1.52, BAT+2.4% RM51.50, IOICORP+0.5% RM5.50, PETGAS+0.9% RM16.60, HLBANK+0.5% RM11.56, CIMB-0.7% RM7.16, SIME-0.6% RM9.61.

3) DBT: TWRREIT 2.5mil @ RM1.36, COMPUGT 1.8mil @ RM0.13.

4) Situationals:

TIME+15.7% RM0.405: Share price surged in active trade on news of a potential stake sale by major shareholder, Khazanah Nasional; with three potential bidders for its 45% stake, the Edge weekly reported. The three bidders are Zamcorp, MM Tech Corp and "an entity linked to prominent businessman" Syed Mokhtar Al-Bukhary, the paper said citing an unnamed source.

MBSB+5.8% RM2.36: Local news tabloid speculated that the company's biggest shareholder, Employees Provident Fund is considering buying out the mortgage financing provider.

5) FELDA GLOBAL VENTURES

At a briefing to Felda personnel today, the Government is expecting the market capitalization to touch RM21bn when it list on May 10. The government also intends to pay pre and post listing dividends. Koperasi Permodalan Felda (KPF) will be the single largest shareholder with a 37% stake. The list of other government linked funds including PNB & EPF stakes has also been finalized.

Felda Global has also narrowed down its choice of global partners to two companies to help diversify the group and open more markets. A final decision will be made once negotiations are completed.

+ve as the listing will help refocus interest back on the plantation sector which has been in a consolidation phase.

6) Market - The KLCI could continue its consolidation phase after the record volumes traded last week. We expect it to remain in a tight range of between 1560-1540 pts.