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 | 31 Oct 2012

FBM30 1673.07      -1.6 pts ( -0.1%)         Volume 1.599b        Value RM1.691b

 

1) The KLCI traded lower for most of the day in choppy trading, before closing -1.6 points on slightly improved volume. The lower close was despite the recovery in regional markets, marking it's first advance in 4 days. Market volume continues to be dominated by penny stocks TIGER+14%, INGENCO+17%, AMEDIA +13%, THHEAVY -4%. The Technology sector +2.2% outperformed, led by JCY +10%, UNISEM +2%, GTRONIC +0.7%. Market breath was again negative, with losers edging gainers 353:342. Futures closed 1673 pts ( parity).

 

2) Heavyweights: GENM +2% RM3.59, PCHEM +1.6% RM6.50, PARKSON +1.4% RM4.85, MISC +1.2% RM4.24, MMCCORP-3.3% RM2.61, PPB-3% RM13.46, ASTRO -1.8% RM2.71, BAT-1.6% RM63.24.

 

3) DBT: HUBLINE-WA 41.3m @ RM0.03 ( 2.7% of PUC), MAGNA 15m @ RM0.75 ( 10% disc).

 

4) Situationals

IGB -0.4%: after it was reported in variuos Taipei media that Co had won a NT$80b (RM8.36b) development project in Taipei. According to the report, the IGB-led consortium Taipei Gateway International Development Co Ltd had won a bid to build Taiwan's Twin Tower after a competitive process, fending off challenges from 2 other groups. IGB's partners in the bid are said to be Japanese & Taiwanese companies. The project, sited at Taipei's main railway station, is Taiwan's biggest urban development initiative.

 AEON -2.8% : after Co said it was not involved in any discussion with any party with regard to the proposed acquisition of Carrefour SA's operations in Malaysia. However, Aeon did say that it would make an appropriate announcement to the exchange should there be any development on the matter. The share price of Aeon rose some 8% 2 days ago when the story first surfaced.

 

5) TENAGA

FYE 8/2012        Tover +11.2% RM35.85bn      Net 4.2bn   EPS 76.8sen 

          Excl fuel cost compensation +4.9% vs cons(f) RM2.80bn

 

The company recorded YOY electricity demand growth of 4.3% for Pen. Malaysia, in line with the targeted country GDP of 4.5%. Operating expense grew 7.7% mainly due to fuel costs +23.9% and TNB general expense +96.4%. Average coal price recorded for the year was slightly lower at USD103.6/mtn vs USD106.9/mtn. Net earnings after adjusting for fuel cost compensation (RM1.48bn) and translation loss (-RM230.8m) totaled RM2.94bn.  Total debt stood at RM23.1bn but TNB has gradually reduced its forex exposure comprising 12.4% USD and 22.7% Yen. Foreign shareholdings has stabilized at 12.6%.  HOLD

 

6) Market - Immediate market direction will take its cue from the US market which resumes trading tonight ahead of important job data on Friday.