Business & Markets 2012
Written by Surin Murugiah of theedgemalaysia.com
Thursday, 29 November 2012 18:50
KUALA LUMPUR (Nov 29): The FBM KLCI could end the end the week on a positive note and eke out some gains for a third day running on Friday, in line with the improve sentiment at global markets.
But the local index will likely end up losing month-on-month, given that as at Nov 29, the index had lost a whopping 67 points for the month.
World shares hit three-week peaks and commodities were also higher on Thursday as comments from a senior US lawmaker raised hopes of a budget deal by year-end to avoid a fiscal crisis in the world's biggest economy, according to Reuters.
European stocks rose early on Thursday, echoing gains overnight in the United States as law makers there boosted confidence that a deal on fiscal policy would be struck, with basic resources the top sectoral gainer, it said.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said that after the rebound from the late-September low of 1,595.85, the FBM KLCI peaked at 1,679.37 on Oct 29, 2012.
“A critical break of the critical 1,669 short-term support level (on Nov 2) led to a plunge towards 1,590.67 on 28 Nov.
“As such, the weaker support levels are seen at the 1,554, 1,582 and 1,590-levels, whilst the resistance levels of 1,607, 1,624 and 1,679 will dampen all market rebound activities,” he said.
Lee said that tactically, investors will remained sidelined and adopt a “wait-and-see” investment attitude in the next few months ahead.
“Alternatively, they could sell their current positions and remain more in cash. They could also attempt some short positions on the KLCI Futures contracts if the market rebounds,” he said.
Among the stocks that could be in focus on Friday are Axiata Group Bhd, CAHYA MATA SARAWAK BHD [] (CMSB), KPJ HEALTHCARE BHD [], Carlsberg Brewery (M) Bhd and Petroliam Nasional Bhd-linked (Petronas) counters.
Axiata Group Bhd registered a net profit of RM709.92 million for the third quarter ended Sept 30, 2012, up 20.4% from RM589.6 million posted in the corresponding quarter in 2011.
Revenue increased to RM4.55 billion, up 8.4% from RM4.19 billion previously.
“The excellent revenue performance was on the back of robust data business in Malaysia and Indonesia, and higher active subscribers and usage in Sri Lanka and Bangladesh," said Axiata in a Bursa filing.
CMSB net profit for the third quarter ended Sept 30, 2012 fell 41.95% to RM22.14 million from RM38.14 million a year earlier, due mainly to reduced profitability suffered by the manufacturing division.
The company said on Thursday that its revenue for the quarter rose to RM288.28 million from RM240.76 million 2011.
Earnings per share was 6.91 sen compared with 11.58 sen a year earlier, while net asset per share was RM4.46.
For the nine months ended Sept 30, CMSB nets profit rose to RM100.58 million from RM96.51 million a year earlier, on the back of revenue RM810.83 million versus RM725.09 million in 2011.
KPJ Healthcare net profit for the third quarter ended Sept 30, 2012 slipped 3.24% to RM33.37 million from RM34.49 million earlier despite posting an increase in revenue to RM530.58 million versus RM476.03 million a year earlier.
The company declared an interim dividend 2.5 sen (single tier) per share of 50 sen each, to be paid on Jan 15, 2013.
Carlsberg net profit for the third quarter ended Sept 30, 2012 rose 25% to RM61.05 million from RM48.84 million earlier, on the back on of an increase in revenue to RM410.84 million versus RM401.66 million in 2011.
For the nine months ended Sept 30, Carlsberg’s net profit rose to RM151.16 million from RM128.81 million on the back of revenue RM1.25 billion versus RM1.15 billion a year earlier.
Meanwhile, Petronas-linked counters could be in focus after the national oil firm flagged tougher operating conditions and lower 2012 full-year profit when reporting that its third quarter net profit had fallen 22% year-on-year to RM12.44 billion.
"To what extent [2012 profits will be] lower, we'll know in the fourth quarter but we're pretty sure it's going to be lower than last year," Petronas executive vice president (finance) Datuk George Ratilal told reporters at a briefing Thursday.
"Margins are trending down from 44.5% to 36.4%," he added.
Net profits for the third quarter ended Sept 30, 2012, fell to RM12.44 billion from RM15.94 billion in 3Q11 on the back of a 4.9% slide in revenue to RM68.34 billion from RM71.84 billion due to lower realised prices and sales volume for crude oil.