Market Roundup 210212

FBM30 1560.57, +3.42 points (+0.22%), Volume 1,894.5mil, Value 1,747mil

1) KLCI recovered from morning losses staging a slight rebound from low of 1558.13pts (-2.44pts) after Eurozone finance ministers approved the rescue plan for Greece eliminating concerns of a Greek default next month with focus now on Greece's implementation of its budget cuts and austerity measures. Banks (MAYBANK+1%) and telcos (MAXIS+3%, TM+1.5%) led index higher as investors' focus switch to the reporting season. Market breath was negative with decliners leading gainers 442:370. Futures closed 1568.5 (8 points premium).

2) Heavyweights: MAYBANK+1.05% RM8.70, MAXIS+2.93% RM5.98, AXIATA+0.8% RM5.04, TM+1.44% RM4.93, KLK-0.58% RM24.00, YTL-2.65% RM1.47, AMMB-1.14% RM6.07, BAT-1.67% RM53.00

3) DBT: EDARAN 11mil @ RM0.305 (18% PUC), FABER 8.4mil @ RM1.73 (2.3% PUC), MNRB 7mil @ RM2.67 (3.3% PUC)

4) Situationals:

MITRA+1.57% RM0.645: company has been awarded 3 projects totaling RM181.56mil. Two jobs have been awarded by Prasarana for civil works and external works for 4 stations in the Kelana jaya and Ampang lines worth RM102.13mil. The remainder comes from Putrajaya Holdings Sdn Bhd for construction of medium-cost public apartments.

NILAI+7.7% RM1.40: Nilai Resources Group Bhd climbed after the major shareholders Akarmas Sdn Bhd, and Tan Sri Dr Gan Kong Seng which collectively holds 55.1% Equity had proposed the selective capital repayment of RM1.50 per share.

5) UNISEM

FYE Dec 2011  Tover  -15% RM1.16bn   Net RM19.7m   2.92sen

           

32% below cons (f) RM28.8m

Decline in revenue and profits principally attributable to reduction in overall group sales, depreciation in US/RM ex rate and higher depreciation. This saw European and US operations sink into the red. The difficult conditions continued into the 4Q resulting in an overall net loss of RM2.66m.

Despite the managements efforts to contain cost and realign its business model plus the anticipated recovery in the semicond ind , this may not be enough for the company to achieve this consensus forecast of RM60.43m. Reduce.

6) Market - Rotational plays to continue with focus likely to shift to GLCs, the expected main beneficiaries of ETP related contracts ahead of imminent elections.

Market Roundup 130112

FBM30 1523.07 -2.49 points (-0.16%)  Vol 1,766mil Value 1,608mil

1) KLCI was mostly traded in the red throughout the day contrary to firmer regional markets reacting to signs that Europe's debt crisis is easing. Select situationals hogged the limelight: Pos +5.1%, DRB +3.8%, whilst recent outperformers were sold down at close: MAS -3.7%, Proton -5.13%. TENAGA (gained as much as 2.7% after announcing co received an advanced payment of RM1bn from the govt on behalf of Petronas as compensation for additional costs arising from a gas supply shortage). Market breadth was mixed with losers edging gainers 397:373. Futures closed 1525.5 (2 points premium).

2) Heavyweights: IOICORP-1.1% RM5.43, GENTING-0.7% RM10.88, CIMB-0.4% RM7.27, DIGI-0.5% RM3.90, PBBANK-0.2% RM13.16, YTL-0.7% RM1.49, SIME-0.1% RM9.15, GENM+0.8% RM3.88, MMCCORP+2.6% RM2.80, MAYBANK+0.1% RM8.26

3) DBT: FRONTKN 59.5mil @ RM0.12, SUBUR 21.5mil @ RM1.99, BJLAND 10.7mil @ RM0.92.

4) Situationals:

FABER-2.2% RM1.78: Shares retreated on concerns over the increasing legal disputes the company is facing involving its projects in the Middle East. On Thursday, the company said that its subsidiary Faber Ltd Liability Company was facing a suit from sub-contractor, Sweet Home Technical Works Ltd Liability Company, for services provided for housing projects in Abu Dhabi. The claim dated Jan 10 was for RM11.21mil.

CANONE+5.6% RM1.88, KIANJOO+7.5% RM2.16: Shares climbed on market expectations that Can-One would likely launch a general offer for KJCH after securing the 32.9% block. Last Thursday, Jan 5, Can-One won the legal tussle to acquire the 146.13 mil KJCF shares held by Kian Joo Holdings Sdn Bhd after a Federal Court ruled in its favour. The Court had allowed Can-One's appeal to proceed with the completion of the acquisition of the 32.9% stake for RM241.1mil. Market talk was that Can-One could then launch a GO for the remaining shares in KJCF.

5) Mitrajaya: Co announced that it's wholly owned subsidiary Pembinaan Mitrajaya SB has on Jan 13 accepted a LOA from Putrajaya Holdings SB for the proposed construction & completion of a) 63 units 2-storey terrace houses in Precinct 11, Putrajaya for a contract sum of RM20.5m and b) 25 units 2-storey shop office, 4 units 3-storey shop office & associated works at Precinct 8, Putrajaya for contract sum of RM12.9m. Both the contract are to be completed within a period of 22 months from the date of possession of site & are expected to contribute positively to Mitrajaya group's future earnings; +ve.

6) Mkt - continue with range trading and rotational play amongst sectors.