News Bits | 22 April 2013

IDEAS OF THE DAY (SEE SEPARATE REPORTS FOR DETAILS)

 

*        Sector Update: Media

*        Quick Bites: GAMUDA, MISC, WCT, UZMA

*        On Our Portfolio: All Eyes on the Election Campaign

*        On Our Technical Watch: Weekly Technical

 

 

 

NEWS HIGHLIGHTS

 

*        Petronas Dagangan gets sukuk approval

*        CIMB Thai Q1 net profit up 11.4%

*        Up to EPF to decide RHBCap privatisation, says group MD

*        Kamdar to sell land, building for RM26.0m

*        Datasonic awarded RM15.0m KDN service contract

*        Johan in talks to sell charge and credit card ops

 

FOREIGN NEWS HIGHLIGHTS

 

*        Sprint/SoftBank asks FCC to go ahead with deal review

*        Nestle's Nespresso Growth Hit by Swiss Contender Migros

 

 

ECONOMIC NEWS HIGHLIGHTS (MACRO BITS)

 

Global

 

*        IMF To Boost Oversight Of Bank Stimulus

 

Asia Pacific

 

*        G-20 Eyes Stimulus Fallout Even As Japan Bond Buying Praised

*        Japan Invited To Join TPP Trade Talks

*        PBOC's Zhou Says Slower Growth Needed For Restructuring

*        Australia Sees Wider Deficit As High Currency Hits Revenue

 

North America

 

*        Dealers Say No End To QE In 2013 As Hatzius Sees 2016 Rate Rise

*        Carney Says Next Canada Rate Move Needs Above 2% Growth

 

Europe

 

*        Greeks Have Lost A Third Of Their Disposable Income

 

Currencies

 

*        Dollar Gains Vs. Yen After G-20 Statement

 

Commodities

 

*        Oil Rebound After Week's Big Sell-Off

*        Gold Posts 5% Weekly Loss, Outlook Seen Volatile

 

News Bits | 4 March 2013

IDEAS OF THE DAY (SEE SEPARATE REPORTS FOR DETAILS)

l  Sector Update: Rubber Glove

l  On Our Portfolio: A Better Sentiment Ahead?

l  On Our Technical Watch: Weekly Technical

 

NEWS HIGHLIGHTS

l  RHB, JBIC ink USD100.0m 'green' deal

l  HLCap takeover saga continues

l  KLCC Prop's REIT listing in April

l  Bursa Malaysia embarks on efforts to attract more foreign

l  UMW Toyota achieves record sales last year

l  Plenitude unit in deal to sell land

l  CBSA receives cash offer from Majujaya

 

FOREIGN NEWS HIGHLIGHTS

l  Carlyle-led consortium agrees to buy 7 Days for USD688.0m

l  BP wins bid for access to transocean oil-spill insurance

 

ECONOMIC NEWS HIGHLIGHTS (MACRO BITS)

Malaysia

l  BNM Says Illicit Capital Outflow Likely Overstated

Asia

l  Japan's Consumer Prices Fall For Third Straight Month

l  Japan, EU To Launch Free Trade Talks

l  China February Factory Growth Cools To 5-Month Low

l  China Tightens Mortgage Rules As Home Prices Keep Rising

Americas

l  Manufacturing Sector Surges; US Construction Contracts

l  US Consumer Sentiment Boosted By Jobs Optimism

l  For Americans, Income Falls But Spending Goes Up

l  Obama Signs Sweeping Us Budget Cuts Into Effect

l  Brazil Economy Grew 0.9% In 2012

Europe

l  UK Manufacturing Suffers Shock Contraction

l  Italy Jobless Rate Jumps To Record High Of 11.7 %In January

l  Eurozone Unemployment Hits 11.9%

l  EU 'Growth Boost From Us Free-Trade Deal'

l  Euro Leaders Demand Austerity As Italy Nears New Vote

Currencies

l  Euro Hovers Around $1.30 After Gloomy Data

Commodities

l  Brent Crude Oil Erases 2013 Gains, Slips On US Budget Cuts

l  Gold Down On Strong Us Data, Ignores Spending Cuts

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.

Market Roundup 110112

FBM30 1522.29, +0.3 points (+0.02%), Volume 1,911mil, Value 1,941.5mil

1) KLCI recovered from its low of 1518.80 (-3.19pts) to close just above overnight as heavyweights ended mixed with interest seen mostly on lower liners and penny stocks. Regionals continued to rise on optimism about the US economy but tempered with signs Europe is heading for a recession and warning from Fitch it may downgrade Italy's credit rating. Rotational play saw gains in glove makers led by SUPERMX+10%, TOPGLOV+4%, HARTA+4%. Market breadth was positive with gainers leading losers 437:384. Futures closed 1524 (2 points premium).

2) Heavyweights: AXIATA-1.4% RM4.92, GENTING-1.28% RM10.76, TM-1.63% RM4.83, AMMB-1.37% RM5.74, IOICORP+1.86% RM5.49, TENAGA+1.48% RM6.16, PCHEM+1.57% RM6.46, SIME+0.77% RM9.15

3) DBT: KENCANA 70mil @ RM2.90 (3.5% PUC), SYF 5mil @ RM0.55

4) Situationals:

RHBCAP unch RM7.27/OSK+2.22% RM1.84: Volume picked up for RHBCAP and OSK after midday as both companies announced an application to Bank Negara Malaysia has been made today for the approval of BNM and the Minister of Finance for the proposed merger of OSK and RHB. RHBCAP reached high of RM7.34 while OSK's high was RM1.86 before paring some gains.

5) Supermax

At today's AGM, executive Chairman Datuk Seri Stanley Thai said Supermax is expected to meet its after-tax profit forecast of RM100-110mil for financial year 2011 with revenue estimated about RM1bn. Going forward, Thai estimates a 20-30% increase in sales for financial year 2012 due to lower price of natural rubber and higher sales and expects financial performance similar to 2010. Supermax recorded after-tax profit of RM158.9mil and revenue of RM977mil in 2010.

For 2012, natural rubber contribution to company would be higher due to increasing demand compared to current contribution of 63% from 2011. Supermax currently produces 17.5bil pieces of gloves and would increase gradually to 22bil by 2013 with the completion of its two new plants in Meru, Selangor and the replacement of all its production lines. Neutral

6) Market - Uptrend intact. Track POS which has been in a consolidation phase for the past two months. Recent comment by new parent DRB Hicom indicates there could be some re rating catalyst around the corner. Immediate resistance RM2.80. Trading buy

Morning Commentary 301211

Good morning,

1) Cypark: Cypark Resources Bhd has secured a RM14.71m job to upgrade a landfill site in Negeri Sembilan's Kok Foh enclave. Co said the project involves the closure of a portion of the landfill and the upgrading of another portion into a sanitary cell, and is expected to complete by Dec 2012; +ve, the contract will further strengthen Cypark's position as one of the country's leading specialist in solid waste management & integrated environmental solutions. Job is expected to boost earnings for FY12, in addition to other contracts previously awarded by the National Solid Waste Management Dept for the closure & remediation of 16 landfills.

2) RHB/OSK: RHB Capital may be paying as much as RM1.9b in shares for OSK Holdings Bhd's investment bank, according to sources with knowledge on the matter. Talks between the 2 parties were now centered on a price range of RM1.8b to RM1.9b. The 2 banks were expected to reach an agreement & seek approval from BNM by mid-January. RHB might issue new shares worth as much as 10% of it's existing equity to pay for the OSK unit ; Neutral for now. Buying OSK Investment Bank would allow RHB to overtake CIMB Investment bank as the biggest stockbroker in Malaysia, based on data from Bursa.

3) Construction: MRT Corp (unit initiated by the govt under it's ETP initiative) has sealed the Points of Agreement (POA) with owners of 21 plots of land in the Jalan Inai area affected by the MRT project. The agreements are expected to resolve all outstanding issues faced by land owners with the MRT project, which connects Kajang & Sungai Buloh. The POA addresses issues such as land acquisition, access to the land for tunneling works, compensation & the judicial review which some land owners have brought against the govt. It will form the basis for the mutual agreements, expected to be signed between MRT Corp & the land owners at the end of next month; +ve, the event marked a positive step towards resolving similar land issues at Jalan Sultan, Jalan Bukit Bintang & other affected areas.

4) Mkt: window-dressing to dominate activities today.