FBM30 1674.67
pts +2.11pts (+0.13) Volume 1.109b Value
RM1.165b
1) Trading was thin & cautious on the KLSE, with
investors largely staying sidelined. The KLCI drifted sideways for most of the
day before closing with a small gain of 2.1 points. Market was starved for
leads, as Hurricane Sandy forced US markets to shut for a second day. The
Finance sector +0.34% a notable out-performer, led by PBBANK +0.9% & HLBank
+1.1%, with interest picking up as the old story of a merger between the 2
banks resurfaced. Market breath remained negative, with losers thumping gainers
384:292. Futures closed 1676 pts (1.33 pts prem).
2) Heavyweights : CARLSBERG +2.2% RM12.96, NESTLE +1.7%
RM69.68, ARMADA+1.3% RM3.94, GENM +1.1% RM3.52, IHH -1.2% RM3.24,
IJM -1.2% RM5.01
3) DBT: EFFICIENT 7m @ RM0.155, GREENYB 5m @ RM0.25, SIME
5m @ RM9.80
4) Situationals:
PCHEM -0.3%: share price fairly stable despite news that
Co will discontinue it's vinyl business and as a result, will be taking a
RM560m charge in it's Q4 FY12 for decommissioning & site remediation
expenses and termination of contracts and impairment expenses. It currently has
3 plants, 2 in Malaysia & 1 in Vietnam. Co's expected to commence
decommissioning in Jan 2013, to be implemented in stages over the next 2-3 years. The charge is expected to reduce net profit
for FY12 by c13%.
PETGAS unch : after it was announced that the
commercialization of Co's LNG re-gasification terminal in Sungai Udang Melaka
may be postponed for another month to early next year due to delay in
engineering, procurement & construction (EPC) works. Including this delay,
total delay adds up to 5 months from the initial start date of August 2012.
5) GTRONICS
9mth 30/9 Tover
RM204.7m Net +52% RM35.9m EPS11.2sen
Excl other income,11.5% above Cons(f) RM38m
The company continued to buck the industry trend by
recording another strong set of numbers despite flat YOY top line due to a
change in product line with better margins. Bottom line was boosted by other
income totaling RM6m, partly due to gain on disposal of land and factory
building in Jitra plus disposal of equipment. Their new sensor product which
began commercial production in July also helped boost 3Q numbers. 4Q is traditionally seasonally weaker but we expect 1Q
2013 to show a resumption of growth with the introduction of new products and
services.
+ve Buy on weakness as they remain the best performing
tech company due to their ability to innovate with the changing landscape.
Balance sheet remains strong with prospects of a special dividend as they hold
RM105m cash despite strong operating cashflow.
