Maybank Research retains Buy on Axiata, upgrades Maxis

KUALA LUMPUR: Maybank Investment Bank Research has retained its Buy call on Axiata and upgraded Maxis to a Buy as they would benefit from the implementation of the Goods and Services Tax (GST) when implement in April 2015.

“GST would allow wireless operators a chance to pass on the 6% service tax they currently absorb in the prepaid segment.

 “In reality, the benefits are likely less pronounced given elasticity and competition; we assume operators enjoy the equivalent of a 3% pass-through in service taxes for now,” it said.

Maybank Research said its sector picks are Axiata (maintain Buy, TP: RM7.80) and Maxis (upgrade to Buy, TP: RM7.40). 

"Consequently we raise net profit of Axiata/Digi/Maxis by 2.5%/4.1%/3.2% in 2015, and 3.1%/5.6%/4.3% in 2016 respectively.  

“For sensitivity purposes, every 1% pass-through in prepaid service tax raises net profit of Axiata/Digi/Maxis by 0.8%/1.4%/1.1% in 2015, and 1.0%/1.9%/1.4% in 2016 respectively,” it said. 
Maybank Research said the wireless operators have been absorbing the 6% service tax in the prepaid segment since 1998.

With GST, they can pass on the 6% service tax they currently absorb in the prepaid segment.  The theoretical impact of GST to operators is a direct flow-through of this previously-foregone revenue down to EBITDA. 

The research house explains that in reality, the benefits are likely less pronounced, given 1) the potential elasticity impact (prepaid is a price sensitive segment after all), and 2) possibility of increased competition, which effectively means part of the new-found revenue gets returned back to customers in the form of lower tariffs. 

Operators presently remain non-committal on their intentions with regards to GST treatment.
 “On the back of our earnings upgrades, we raise target prices of wireless operators under our coverage by 3%-7%. Consequently, we upgrade Maxis to BUY (from Hold). Our sector picks are Axiata and Maxis, on the back of their underperformance in 2014,” it added.

DiGi advances on interim dividend, capital distribution plans

KUALA LUMPUR (April 26): Shares of DIGI.COM BHD [] advanced on Thursday after the company declared its first interim dividend for the year as well as a capital distribution exercise.

At 9.07m, DiGi rose three sen to RM3.99 with 116,400 shares traded.

In a statement Wednesday, DiGi said revenue first quarter ended March 3, 2012 grew 9.7% to 1.57 billion from RM1.43 billion in 2011, due mainly to data revenue which accounted for close to 31% of total revenue.

Earnings per share was 4.12 sen compared to 4.26 sen a year earlier.

DiGi will pay a first interim tax exempt dividend of 5.9 sen per ordinary share for the financial year ended Dec 31, 2012 on June 8 June this year.

In a separate announcement, DiGi said its wholly owned unit DiGi Telecommunications Sdn Bhd (DiGiTel) will undertake a capital distribution of about RM495 million to DiGi on the basis of cash repayment of 99 sen for every one existing share of RM1 each in DiGiTel.

“Upon receipt of the cash proceeds from DiGiTel, DiGi expects to distribute approximately RM495 million (less expenses) representing 64 sen per share to its shareholders,” it said.

MIDF Research has maintained its Buy rating on Digi with a target price of RM4.35 and said the company’s 1Q12 earnings were within expectations.

“Digi’s 1Q12 earnings came in within ours and consensus’ expectations at 24.1% and 24.0% of respective full year estimates,” it said in a note Thursday.

The research house said DiGi’s data revenue would continue to be robust in FY12, adding that the data demand would continue apace and Digi will be a main beneficiary.

It said DiGi expects data revenue will continue to be robust especially as it aims to acquire higher small and medium screen subscribers, which gives better margin.

“It maintains its guidance of a mid to single high digit revenue growth for FY12, and about 46% EBITDA margins,” it said.

“We maintain our FY12 and FY13 earnings estimate for Digi given its performance was within our expectation. We continue to like Digi for its continuing commitment to reward its shareholders. We opine that the growth in data will continue to be robust especially with the adoption of LTE.

“We maintain our BUY recommendation as the expected total return is only marginally below our 15% threshold. Our TP is based on the Discounted Dividend Model, with an estimated long-term dividend payout ratio of 100% and a WACC of 9.04%,” it said.



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MIDF Research maintains Buy on DiGi, target price RM4.35

MIDF Research has maintained its Buy rating on Digi with a target price of RM4.35 and said the company’s 1Q12 earnings were within expectations.

“Digi’s 1Q12 earnings came in within ours and consensus’ expectations at 24.1% and 24.0% of respective full year estimates,” it said in a note Thursday.

The research house said DiGi’s data revenue would continue to be robust in FY12, adding that the data demand would continue apace and Digi will be a main beneficiary.

It said DiGi expects data revenue will continue to be robust especially as it aims to acquire higher small and medium screen subscribers, which gives better margin.

“It maintains its guidance of a mid to single high digit revenue growth for FY12, and about 46% EBITDA margins,” it said.

“We maintain our FY12 and FY13 earnings estimate for Digi given its performance was within our expectation. We continue to like Digi for its continuing commitment to reward its shareholders. We opine that the growth in data will continue to be robust especially with the adoption of LTE.

“We maintain our BUY recommendation as the expected total return is only marginally below our 15% threshold. Our TP is based on the Discounted Dividend Model, with an estimated long-term dividend payout ratio of 100% and a WACC of 9.04%,” it said.



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DiGi.Com 1Q net profit dips 3.24% to RM320.64m

KUALA LUMPUR (April 25): DIGI.COM BHD [] net profit for the first quarter ended March 31, 2012 dipped 3.24% to RM320.64 million from RM331.39 million a year earlier.

In a statement Wednesday, DiGi said revenue for the period grew 9.7% to 1.57 billion from RM1.43 billion in 2011, due mainly to data revenue which accounted for close to 31% of total revenue.

Earnings per share was 4.12 sen compared to 4.26 sen a year earlier.

DiGi will pay a first interim tax exempt dividend of 5.9 sen per ordinary share for the financial year ended Dec 31, 2012 on June 8 June this year.

Commenting on its revenue, the company said growth came on the back of continued momentum in its business transformation programme.

Its chief executive officer Henrik Clausen said the telco had seen a steady increase in demand for mobile internet with 5.3 million mobile internet users as of March 31, 2012.

“We believe we will continue to see a significant increase in the number of active mobile internet customers in the coming years, and we will focus our investments on building the right infrastructure and services to enable us to truly deliver the promise of mobile internet to more Malaysians,” said Clausen

In a separate announcement, DiGi said its wholly owned unit DiGi Telecommunications Sdn Bhd (DiGiTel) will undertake a capital distribution of about RM495 million to DiGi on the basis of cash repayment of 99 sen for every one existing share of RM1 each in DiGiTel.

“Upon receipt of the cash proceeds from DiGiTel, DiGi expects to distribute approximately RM495 million (less expenses) representing 64 sen per share to its shareholders,” it said.



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DiGiTel to undertake capital distribution of RM495m to DiGi.Com

KUALA LUMPUR (APRIL 25): DIGI.COM BHD []’s wholly owned unit DiGi Telecommunications Sdn Bhd (DiGiTel) will undertake a capital distribution of about RM495 million to DiGi on the basis of cash repayment of 99 sen for every one existing share of RM1 each in DiGiTel.

In a filing to Bursa Securities on behalf of DiGi on Wednesday, Hong Leong Investment Bank Bhd said the capital distribution was to be implemented via a reduction of the issued and paid-up share capital of DiGiTel pursuant to Section 64 of the Companies Act 1965.

“Upon receipt of the cash proceeds from DiGiTel, DiGi expects to distribute approximately RM495 million (less expenses) representing 64 sen per share to its shareholders,” it said.

The investment bank said DiGi intended to distribute the excess proceeds to its shareholders whose names appear in the Record of Depositors of the Company on an entitlement date, and in such manner, to be determined and announced later.

“The proposed capital distribution is subject to, amongst others, the order of the High Court of Malaya confirming the proposed capital distribution and consents from lender banks and creditors of DiGiTel, if necessary.

“Barring any unforeseen circumstances, DiGi is expected to complete the distribution by the first quarter of 2013,” it said.

The capital management initiative is undertaken by DiGi and its subsidiary to reward shareholders for their continuous support of DiGi, it said.



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KLCI slips into the red at mid-day break

KUALA LUMPUR (April 19): The FBM KLCI gave up some ground to slip into negative territory at the mid-day break on Thursday, in line with the generally tepid sentiment at key regional markets.

Asian shares and the euro traded in tight ranges on Thursday ahead of a Spanish bond sale seen as a key test of investors' risk appetite amid renewed concerns over the euro zone's debt crisis, according to Reuters.

Meanwhile, U.S. stocks slipped on Wednesday, a day after Wall Street's best gains in a month, as uninspiring earnings from tech bellwethers IBM and Intel gave investors a reason to take profits, according to Reuters

The FBM KLCI fell 2.80 points to 1,596.06 at 12.30pm, weighed by losses at select blue chips including CIMB, KLK, Maybank and Genting.

Losers beat gainers by 358 to 221, while 311 counters traded unchanged. Volume was 1.02 billion shares valued at RM661.94 million.

The ringgit weakened 0.13% to 3.0686 versus the greenback, crude palm oil futures for the third month delivery fell RM30 per tonne to RM3,449, crude oil shed 11 cents per barrel to US$102.56 while gold lost US$4.50 an ounce to US$1,637.60.

At the regional markets, Japan’s Nikkei 225 fell 0.89% to 9,580.90, the Shanghai Composite Index down 0.14% to 2,377.57, Singapore’s Straits Times Index fell 0.08% to 2,998.17, south Korea’s Kospi lost 0.33% to 1,997.92, Taiwan’s Taiex edged down 0.01% to 7,604.367 while Hong Kong’s Hang Seng Index gained 0.36% to 20,856.40.

Among the major losers on Bursa Malaysia, Dutch Lady lost 38 sen to RM34.60, KLK 24 sen to RM23.96, Country View 21 sen to 61 sen, Tradewinds 16 sen to RM9.66, KESM and SAM Engineering down 12 sen each to RM2.06 and RM3.67, CSL 10 sen to RM1.68, Subur Tiasa eight sen to RM3 and Nice seven sen to 31 sen.

Meanwhile, CIMB lost three sen to RM7.64, Maybank and Genting down two sen each to M8.85 and RM10.80, and DiGi was down one sen to RM3.92.

Ariantec was the most actively traded counter with 143.99 million shares done. The stock was unchanged at 19 sen.

Other actives included Utopia, CSL, metronic, DBE Gurney, Compugates, Iris Corp and Astral Supreme.

Gainers included Can-One, Tan Chong, F&N, Pintaras, Jaya Tiasa, Bintulu Port, Aeon Credit, Utusan and GAB.



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KLCI ends 1Q on a high

KUALA LUMPUR (March 30): The FBM KLCI ended the first quarter of 2012 on a high note, in line with the global markets that mostly picked up gains at the end of the quarter.

The 30-stock index rose 10.89 points to closet at 1,596.33 on Friday, lifted by blue chips including banking and Petronas-linked stocks.

The closing was just a tad below its all-time high of 1,597.08 that the index rose to on July 11 last year.

Year-to-date, the index racked up 65.6 points from its December 30 close of 1,530.73. Gainers edged losers by 402 to 360, while 334 counters traded unchanged. Volume was 1.25 billion shares valued at RM2.08 billion.

World stocks rose with Europe up more than half a percent on Friday, picking up gains at the end of the quarter and with investors eyeing a boost to the euro zone's bailout resources that ministers are expected to sign off on later in the day, according to Reuters.

Despite the strong quarter, sentiment across asset classes has turned bearish since mid-March due to fears of a slowdown in growth centred on China, and the conviction that a huge injection of central bank money may only be a panacea for Europe's debt troubles, it said.

At the regional markets, the Shanghai Composite Index rose 0.47% to 2,272.79, Taiwan’s Taiex added 0.77% to 7,933.00 and Singapore’s straits Times Index gained

Meanwhile, Japan’s Nikkei 225 closed 0.31% lower at 10,083.56, Hong Kong’s Hang Seng Index fell 0.26% to 20,555.58 while South Korea’s Kospi shed 0.02% to 2,014.04.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said that despite pockets of weakness from China market (Shanghai Composite at 10-week low) and soft economic data from the US and Europe, he expects the FBM KLCI to continue market uptrend supported by local liquidity and strong first quarter performance.

“The local market has ample liquidity at the sidelines, accommodative Bank Negara, low interest rates and government commitment for economic project. Plain and simple.

“We also believe the local market will take further cues from a strong USA market,” he said.

He added that there was a fairly reasonable speculative element in the small cap stocks to create some excitement near term (Carotec, Mtronics, Keywest, Focus, Tiger to name a few).

“Though we agree that the local market is overbought and investors may pause after recent sharp gains, we are yet to see any evidence of distribution to suggest serious market wind down in the near term,” he said.

On Bursa Malaysia, KLK was the top gainer and added 46 sen to RM24.60, F&N up 28 sen to RM18.88, Takaful 27 sen to RM3.39, United PLANTATION []s 18 sen to RM24.98, Kossan, Bursa and DiGi added 12 sen each to RM3.35, RM7.38 and RM4.06 respectively.

Among banking stocks, Hong Leong bank gained 24 sen to RM12.62, AMMB 10 sen to RM6.31, CIMB nine sen to RM7.69 and Maybank seven sen to RM8.87.

Among Pertronas-linked stocks, Petronas Dagangan rose 26 sen to RM18.94, Petronas Gas 10 sen to RM16.84 and Petronas Chemicals six sen to RM6.74.

Carotech was the most actively traded counter with 99.63 million shares done.

Other actives included CIMB, Focus, Ariantec, Metronic, YTL, Naim Indah Corp and Key West.

Decliners included Genting, Dutch Lady, sunchirin, Multico, Kulang, Shangri-La, Kulim, Fiamma, Advanced Packaging and TDM.



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Prepaid service tax in July?

KUALA LUMPUR (March 15): Rumour has it that the government may have finally decided to allow telecommunications companies (telcos) to pass on the six percent service tax to prepaid subscribers, HLIB Research says.

"It is understood that the Malaysian Communications and Multimedia Commission (MCMC) has issued a memo to all the industry players instructing the telcos to be technically prepared for the launch on July 1," said the research house today.

"Coupled with the broadband tax incentive implemented last year, this will further enhance telcos' earnings in the longer term," it said, maintaining a neutral rating on the telecommunications sector.

The research division of Hong Leong Investment Bank (HLIB) said it expected DiGi to benefit the most if this rumour was to materialise considering that it had the highest proportion (86.6 per cent) of prepaid users to total subscribers base, compared to Maxis (74 per cent) and Celcom (77.2 per cent).

Based on its estimation, DiGi, Maxis and Celcom would enjoy earnings uplift of six per cent, four per cent and two per cent respectively, provided competition and usage remain status quo. – Bernama



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CIMB Research maintains Sell on DiGi, target price RM3.75

KUALA LUMPUR (March 15): CIMB Equities Research is more negative on DiGi in light of rising competition from Maxis in the migrant market and low likelihood of the 8.9 sen capital distribution it had earlier anticipated for FY13.

It said on Thursday that DiGi downplayed the threat from Maxis’s latest prepaid plan during Wednesday’s luncheon.

“But we think that Maxis is determined to wring some market share from DiGi, the market leader among migrant workers.

“We remove our assumption of capital distribution in FY13, tweak our forecasts but maintain our DCF-based target price of RM3.75. Maintain Sell,” CIMB Research said.



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Market Commentary

The FBM KLCI index gained 11.69 points or 0.75% on Wednesday. The Finance Index increased 0.53% to 14082.29 points, the Properties Index up 0.18% to 1039.21 points and the Plantation Index rose 0.18% to 8611.44 points. The market traded within a range of 7.30 points between an intra-day high of 1575.71 and a low of 1568.41 during the session.

Actively traded stocks include NICORP, CSL, YTL, TIGER, HWGB, EURO, AXIATA, SIME, ASUPREM and SILVER. Trading volume increased to 1273.33 mil shares worth RM1844.76 mil as compared to Tuesday’s 1163.12 mil shares worth RM1471.04 mil.

Leading Movers were CIMB (+14 sen to RM7.40), TENAGA (+15 sen to RM6.47), AXIATA (+6 sen to RM5.12), PETGAS (+48 sen to RM16.98) and PETCHEM (+8 sen to RM6.78). Lagging Movers were DIGI (-5 sen to RM3.95), YTLPOWR (-2 sen to RM1.77), HLBANK (-4 sen to RM12.06) and MMHE (-1 sen to RM5.35). Market breadth was positive with 444 gainers as compared to 334 losers. -- JF Apex Securities Bhd



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Market Commentary

The FBM KLCI index gained 0.64 points or 0.04% on Friday. The Finance Index fell 0.09% to 14104 points, the Properties Index dropped 0.49% to 1046.09 points and the Plantation Index rose 0.19% to 8629.54 points. The market traded within a range of 4.77 points between an intra-day high of 1582.00 and a low of 1577.23 during the session.

Actively traded stocks include NICORP, SUMATEC, LEESK, KEYWEST, SUMATEC-WA, CSL, SILKHLD, HWGB, WINSUN and TMS. Trading volume decreased to 1306.73 mil shares worth RM1367.01 mil as compared to Thursday’s 1769.37 mil shares worth RM1763.28 mil.

Leading Movers were TENAGA (+13 sen to RM6.39), MAYBANK (+2 sen to RM8.74), GENM (+3 sen to RM3.89), KLK (+14 sen to RM23.40) and TM (+2 sen to RM5.23). Lagging Movers were DIGI (-3 sen to RM4.02), AIRASIA (-3 sen to RM3.63), HLBANK (-10 sen to RM12.28), AXIATA (-1 sen to RM5.13) and PETGAS (-8 sen to RM16.70). Market breadth was negative with 369 gainers as compared to 388 losers. -- JF Apex Securities Bhd



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Market Commentary

The FBM KLCI index gained 3.53 points or 0.22% on Thursday. The Finance Index increased 0.19% to 14116.46 points, the Properties Index up 0.06% to 1051.2 points and the Plantation Index rose 0.15% to 8612.94 points. The market traded within a range of 4.24 points between an intra-day high of 1580.41 and a low of 1576.17 during the session.

Actively traded stocks include NICORP, HWGB, SUMATEC, CSL, SUMATEC-WA, RA, GOCEAN, HWGB-WB, AMEDIA and WINSUN. Trading volume increased to 1769.37 mil shares worth RM1763.28 mil as compared to Wednesday’s 1742.64 mil shares worth RM2030.26 mil.

Leading Movers were TENAGA (+7 sen to RM6.26), CIMB (+5 sen to RM7.36), SIME (+4 sen to RM9.84), GENTING (+6 sen to RM10.80) and AXIATA (+2 sen to RM5.14). Lagging Movers were DIGI (-2 sen to RM4.05), AMMB (-5 sen to RM6.17), PETDAG (-3 sen to RM18.36), PETCHEM (-1 sen to RM6.83) and HLFG (-10 sen to RM12.00). Market breadth was positive with 415 gainers as compared to 336 losers. -- JF Apex Securities Bhd



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Market Commentary

The FBM KLCI index gained 0.69 points or 0.04% on Tuesday. The Finance Index increased 0.01% to 14206.39 points, the Properties Index dropped 0.71% to 1057.79 points and the Plantation Index down 0.20% to 8644.77 points. The market traded within a range of 9.44 points between an intra-day high of 1589.95 and a low of 1580.51 during the session.

Actively traded stocks include WINSUN, CSL, ENVAIR, IFCAMSC, HWGB, HWGB-WB, NICORP, GOCEAN, KBUNAI and AXIATA. Trading volume decreased to 1288.12 mil shares worth RM1792.17 mil as compared to Monday’s 1448.66 mil shares worth RM1760.84 mil.

Leading Movers were GENTING (+16 sen to RM10.92), TM (+8 sen to RM5.25), MAYBANK (+2 sen to RM8.79), PETCHEM (+3 sen to RM6.92) and HLBANK (+10 sen to RM12.40). Lagging Movers were CIMB (-6 sen to RM7.42), TENAGA (-7 sen to RM6.24), BAT (-32 sen to RM52.52), DIGI (-2 sen to RM4.11) and IOICORP (-2 sen to RM5.40). Market breadth was negative with 257 gainers as compared to 519 losers. -- JF Apex Securities Bhd



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CIMB leads KLCI to higher close, 11 pts away from all-time high

KUALA LUMPUR (March 2): CIMB led the FBM KLCI to a higher close, just 11 points away from the all-time high of 1,594.74 in July 2011, as the firmer blue chips galvanised market sentiment.

At the close, the KLCI was up 10.33 points or 0.66% to 1,583.78. Turnover was 1.63 billion shares valued at RM1.93 billion. Advancing counters beat decliners 540 to 276 while 330 counters were unchanged.

Reuters reported European shares edged up to their highest level in more than a week on Friday, with the European Central Bank's ultra-cheap funding this week helping the euro zone debt market and further reducing risk within the battered banking sector.

Financials were among the top gainers, with the STOXX Europe 600 Banking index rising 0.6 percent and Commerzbank advancing 3%. The index, which was the worst performer in 2011 with a 32% drop, has gained about 19% so far this year.

Among the key regional markets, Japan’s Nikkei 225 rose 0.72% to 9,777.03, Hong Kong’s Hang Seng Index added 0.81% to 21,562.26, Shanghai’s Composite Index added 1.43% to 2,460.69 and Singapore’s Straits Times Index 0.49% higher at 2,993.49.

BAT was the top gainer, adding 40 sen to RM53.50. Its fourth interim dividend of 66 sen per share tax exempt will go ex on Tuesday.

CIMB rose 16 sen to RM7.33, pushing the index up 2.82 points after the banking group moved closer to expand its regional reach by acquiring certain assets of The Royal Bank of Scotland in Asia Pacific.

AMMB added nine sen to RM6.26 while Maybank and Public Bank rose two sen each to RM8.77 and RM13.70.

Petronas Chemical added 15 sen to RM6.90, Genting 14 sen to RM10.60 while DiGi and YTL advanced eight sen each to RM4.12 and RM1.78.

KHSB was the most active counter with 76 million shares done, adding 6.5 sen to 62.5 sen.

Silver Bird was unchanged at 20.5 sen as the price could have bottomed out after being sold down on Thursday where it lost nearly half its value.

China Stationery Ltd saw its share price slipping three sen to RM1.8 as investors took profit following its listing on Feb 24 at the offer price of 95 sen.

Among the decliners, PPB fell 34 sen to RM16.94, Dutch Lady 22 sen to RM29.50, Ta Ann 20 sen to RM5.71 and Hartalega 19 sen to RM8.13.



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Market Commentary

The FBM KLCI index gained 3.80 points or 0.24% on Thursday. The Finance Index increased 0.07% to 14026.81 points, the Properties Index up 0.36% to 1056.46 points and the Plantation Index rose 0.00% to 8652.12 points. The market traded within a range of 7.40 points between an intra-day high of 1576.23 and a low of 1568.83 during the session.

Actively traded stocks include NICORP, CSL, IFCAMSC, YTL, SIME, TIMECOM, SILVER, RA, DRBHCOM and WINSUN. Trading volume decreased to 1617.80 mil shares worth RM2024.63 mil as compared to Wednesday’s 1942.34 mil shares worth RM2693.55 mil.

Leading Movers were SIME (+24 sen to RM9.93), PETCHEM (+5 sen to RM6.75), BAT (+90 sen to RM53.10), DIGI (+2 sen to RM4.04) and AMMB (+4 sen to RM6.17). Lagging Movers were GENTING (-14 sen to RM10.46), YTL (-5 sen to RM1.70), TENAGA (-3 sen to RM6.25), YTLPOWR (-3 sen to RM1.83) and RHBCAP (-15 sen to RM7.80). Market breadth was negative with 309 gainers as compared to 506 losers. -- JF Apex Securities Bhd



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Market Commentary

The FBM KLCI index lost 3.26 points or 0.21% on Wednesday. The Finance Index fell 0.01% to 13949.99 points, the Properties Index dropped 0.44% to 1044.25 points and the Plantation Index down 0.91% to 8666.2 points. The market traded within a range of 6.31 points between an intra-day high of 1565.25 and a low of 1558.94 during the session.

Actively traded stocks include TMS, GOCEAN, IFCAMSC, GPACKET-WA, NICORP, INGENS, FOCUS, MTRONIC, GEFUNG and COMPUGT. Trading volume increased to 2230.80 mil shares worth RM1937.12 mil as compared to Tuesday’s 1894.51 mil shares worth RM1747.28 mil.

Leading Movers were GENTING (+10 sen to RM10.84), TM (+10 sen to RM5.03), TENAGA (+4 sen to RM6.11), RHBCAP (+23 sen to RM7.78) and DIGI (+1 sen to RM4.01). Lagging Movers were IOICORP (-10 sen to RM5.34), PPB (-50 sen to RM17.14), CIMB (-5 sen to RM7.24), GENM (-7 sen to RM3.87) and KLK (-36 sen to RM23.64). Market breadth was negative with 302 gainers as compared to 541 losers. -- JF Apex Securities Bhd



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Market Commentary

The FBM KLCI index gained 3.42 points or 0.22% on Monday. The Finance Index increased 0.38% to 13915.54 points, the Properties Index dropped 0.11% to 1045.59 points and the Plantation Index down 0.01% to 8820.75 points. The market traded within a range of 5.29 points between an intra-day high of 1562.60 and a low of 1557.31 during the session.

Actively traded stocks include GOCEAN, PDZ, PERISAI, NICORP, WINSUN, COMPUGT, SERNKOU, WIJAYA-WA, AT and FOCUS. Trading volume decreased to 1864.17 mil shares worth RM1610.89 mil as compared to Friday’s 2265.97 mil shares worth RM1941.98 mil.

Leading Movers were MAYBANK (+5 sen to RM8.61), BAT (+138 sen to RM53.90), YTL (+4 sen to RM1.51), SIME (+4 sen to RM9.63) and GENTING (+6 sen to RM10.70). Lagging Movers were TENAGA (-7 sen to RM6.04), DIGI (-3 sen to RM3.99), AXIATA (-1 sen to RM5.00), PETGAS (-6 sen to RM16.44) and GENM (-1 sen to RM3.94). Market breadth was negative with 349 gainers as compared to 469 losers. -- JF Apex Securities Bhd



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Market Commentary

The FBM KLCI index gained 6.66 points or 0.43% on Friday. The Finance Index increased 0.66% to 13863.47 points, the Properties Index up 0.08% to 1046.78 points and the Plantation Index rose 0.30% to 8821.29 points. The market traded within a range of 6.24 points between an intra-day high of 1559.92 and a low of 1553.68 during the session.

Actively traded stocks include PDZ, COMPUGT, GPA, DIALOG-WA, NICORP, TIGER, EXTOL, PERISAI, GOCEAN and IPOWER. Trading volume increased to 2265.97 mil shares worth RM1941.98 mil as compared to Thursday’s 2185.22 mil shares worth RM1972.18 mil.

Leading Movers were TENAGA (+11 sen to RM6.11), MAYBANK (+6 sen to RM8.56), GENTING (+12 sen to RM10.64), SIME (+5 sen to RM9.59) and PBBANK (+6 sen to RM13.70). Lagging Movers were DIGI (-2 sen to RM4.02), MAXIS (-2 sen to RM5.75), GENM (-1 sen to RM3.95), PPB (-4 sen to RM17.66) and MMHE (-3 sen to RM5.41). Market breadth was positive with 511 gainers as compared to 304 losers. -- JF Apex Securities Bhd



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Market closes steadier, but down for the week

KUALA LUMPUR (Feb 17): Blue chips on Bursa Malaysia closed firmer on Friday, tracking the regional markets which posted gains of up to 1.6% as investors were somewhat upbeat that Greece had taken enough measures to ensure it would secure a second bailout.

The FBM KLCI closed up 6.66 points to 1,557.17, boosted by gains in Tenaga, Maybank and Genting. Turnover was 2.27 billion shares valued at RM1.94 billion. There were 511 gainers, 304 losers and 346 stocks unchanged.

All the key Asian markets posted gains. Japan’s Nikkei 225 rose 1.58% to 9,384.17, Hong Kong’s Hang Seng Index 1.01% to 21,491.62. Taiwan Taiex 0.32% to 7,894.36 and South Korea’s Kospi 1.30% to 2,023.47 while Singapore’s Straits Times Index edged up 0.79% to 3,000.59. The Shanghai Composite Index was a marginal 0.01% higher at 2,357.18 while the other China indices closed in the red.

Reuters reported optimism grew on Friday that Greece has finally done enough to secure a second bailout despite worsening relations with Germany, but doubts remained over lenders' demands for tighter supervision of how Athens will implement the deal.

Greek officials say they have done everything asked of them for euro zone finance ministers to sign off on the 130 billion euro (US$170 billion) rescue package on Monday -- a month before Athens needs the money to make 14.5 billion euros of debt repayments due on March 20 or go bankrupt.

At Bursa Malaysia, investors were happy to see the market closing higher after the pullback on Thursday. However, for the week, the KLCI lost 4.51 points down from 1,561.66 on Feb 10.

Analysts said the positive economic data from Bank Negara Malaysia on the economic growth in the fourth quarter of 2011 helped boost sentiment. The cautious outlook for 2012, as forecast by BNM, was expected.

Crude palm oil futures for third-month delivery rose RM54 to RM3,243 per tonne. The ringgit gained 0.0162 to 3.0430 to the US dollar.

Tenaga rose 11 sen to RM6.11, pushing the KLCI up 1.41 points. Maybank added six sen to RM8.56 and GENTING BHD [] 12 sen to RM10.64, nudging the index up by 1.06 points and 1.05 points.

HLFG rose 20 sen to RM11.74, Hong Leong Bank 12 sen to RM11.74, Public Bank six sen to RM13.70, AMMB four sen to RM6.14 and CIMB three sen to RM7.28.

Tasek was the top gainer, up 47 sen to RM8.47 after announcing its dividend payout. Petronas Dagangan rose 20 sen to RM18.02 and Petronas Gas 14 sen to RM16.50.

PDZ was the most active with 178.9 million shares done, adding two sen to 10.5 sen, GPA rose 1.5 sen tp 10.5 sen.

Perisai rose six sen to 98.5 sen. There were 50 million shares crossed in several off-market deals at an average price of 88 sen.

Among the decliners were DiGi, down eight sen to RM4.02, Maxis twos en tp RM5.75 and MMHE three sen to RM5.41.



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Market Commentary

The FBM KLCI index lost 10.81 points or 0.69% on Thursday. The Finance Index fell 0.60% to 13771.94 points, the Properties Index dropped 0.78% to 1045.94 points and the Plantation Index down 0.77% to 8794.57 points. The market traded within a range of 9.74 points between an intra-day high of 1559.08 and a low of 1549.34 during the session.

Actively traded stocks include NICORP, MUIPROP, COMPUGT, TMS, WINSUN, TIGER, KBUNAI, HIBISCS-WA, MUIIND and TAKASO. Trading volume decreased to 2185.22 mil shares worth RM1972.18 mil as compared to Wednesday’s 2309.57 mil shares worth RM2145.93 mil.

Leading Movers were GENM (+1 sen to RM3.96), TM (+1 sen to RM4.84), MAXIS (+1 sen to RM5.77) and UMW (+1 sen to RM6.84). Lagging Movers were TENAGA (-13 sen to RM6.00), PBBANK (-12 sen to RM13.64), DIGI (-6 sen to RM4.10), SIME (-7 sen to RM9.54) and KLK (-58 sen to RM24.80). Market breadth was negative with 239 gainers as compared to 668 losers. -- JF Apex Securities Bhd



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