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

 

Market Roundup | 19 April 2013

FBMKLCI  1706.28 +0.02pts (+0.00%)  Volume  779.79mil  Value RM1,668mil

 

1) KLCI had another lacklustre trading day despite seeing regionals led by HK+2.3% and SHCOMP+2.1% rebounding on hopes China's government may widen yuan's trading band. Index failed to hold its morning gains touching a low of 1702.60 (-3.66pts) before recovering to edge positive at close on buying interest in CIMB, Maybank and Genting. Market breadth was negative with decliners leading gainers 398:269. Futures closed 1705pts (1.2pts discount).

 

2) Heavyweights: IOICORP-1.77% RM5.00, TENAGA-0.63% RM7.90, GENM-1.08% RM3.66, ASTRO-1.37% RM2.87, CIMB+0.91% RM7.77, GENTING+1.19% RM10.20, MAYBANK+0.52% RM9.70, HLFG+2% RM15.34

 

3) DBT: GRANFLO 20.74mil @ RM0.22 (6.49% PUC), COMPUGT 13.53mil @ RM0.078

 

4) Situationals:

 

EFFICEN-3.85% RM0.125: The memorandum of understanding (MoU) for a proposed collaboration between EFFICIENT E-SOLUTIONS BHD and Singapore Post Ltd (SingPost) for data and document management services in Indonesia was mutually terminated yesterday. In an announcement to Bursa Malaysia, Efficient E-Solutions said both parties were unable to identify any business opportunities or conclude any potential investors or business partners in Indonesia.

 

 

5)Uzma Bhd: The Board of Directors of Uzma Berhad announce that Uzma, through its subsidiary company Malaysian Energy Chemical & Services Sdn. Bhd, received on 18 April 2013 a Letter of Award from ExxonMobil Exploration and Production Malaysia Inc for the provision of oilfield chemicals and associated services.  The Contract period is for 5 years (primary term) from 1 April 2013 to 31 March 2018 with an extension option of 2 years. The value for the primary term is estimated at RM238 million. The award of the Contract will have no effect on the issued and paid-up capital of the Company and is expected to contribute positively to the Uzma group's earnings and enhance net assets per share for the financial year ending 31 December 2013; +ve. We are optimistic that UZMA will be able to deliver a sterling FY13 full-year results based on the higher units of UzmaPres delivered and the growth in its wireline and well-testing divisions. We understand that the eighth unit of UzmAPRES has already been deployed.

 

6) Market: trading will likely continued to be 2-tiered with the index stocks supported while profit-taking persists on recent market volume leaders and lower liners. Market players will also be tracking tomorrow nomination day closely for leads to next week trading.

 

Market Roundup 170212

FBM30 1557.15,  +6.66 points (+0.43%), Volume 2,265.9mil, Value 1,941.9mil

1) KLCI was firm thoughout the day, in line with the regional bourses as it tracked strong gains on Wall Street on robust US economic data (jobless claims fell, housing starts rose), while expectations grew that the ECB's plans to swap its Greek debt holdings for new bonds once debt-restructuring negotiations are complete. Second-liners and small-cap stocks continue to attract interest with PDZ+23.5%, GPA+16.7%, GOCEAN+15.4% whereas TENAGA+1.8% (stk was highlighted in this morning's stk call) was in the limelight on news that the recommended price of natural gas is being finalised and is scheduled to be presented to the cabinet by the end of March. Broader market was +ve with gainers thrashing losers 511:304. Futures closed 1560.5 (3point premium).

2) Heavyweights: TENAGA+1.8% RM6.11, MAYBANK+0.7% RM8.56, GENTING+1.1% RM10.64, SIME+0.5% RM9.59, PBBANK+0.4% RM13.70, AXIATA+0.6% RM5.01, CIMB+0.4% RM7.28, PETGAS+0.8% RM16.50, DIGI-0.2% RM4.02.

3) DBT: PERISAI 50mil @ RM0.88, ASIABIO 9mil @ RM0.07, DAYA 7.5mil @ RM0.20

4) Situationals:

UZMA+5.8% RM2.01: Share price rose after company secured a contract worth about RM350 million from Petronas; the company said in an exchangefiling Thursday the contract to provide well testing equipment and services will be effective from April 2012 to March 2017. The contract is the company's largest ever since its 2008 listing and may help to extend earnings visibility to about five years;

5) Sarawak Cable: announced that the MOU between Sarawak Cable (SCB),Sinohydro Corporation (M) SB & KEC International Ltd  in relation to the proposed development of the Transmission Lines in the State of Sarawak together has been terminated. As such, the parties will not be submitting the proposals on the project together.

Comments:-ve but SCB is seen to be the front runner for Sarawak's 500kV backbone line(which spans 600km connecting Bunut to Kuching costing up to RM1.5b) and has a competitive edge as it remains the only integrated transmission line specialist especially in suppling of power cables up to 500kV. Co remains a direct play on Sarawak's rising Energy capex spending especially on transmission lines. Imminent outstanding projs to be awarded include Samalaju Industrial Park area. Buy on weakness.

6) Mkt - bullish uptrend remains intact on +ve US econ numbers and optimism Greece is closer to getting its crucial 2nd bailout. Track FYE11 Results announcements next wk will set the tone for selected stks and mkt. Continue to advocate buying on weakness. Stks at Buy lvls: TNB, UEMLAnd, MRCB, KEuro, Faber, MAS, Pos, DRB