FBM 1622.97
-1.23pts (-0.08% ) Volume
1,024mil Value RM1,577mil
1) KLCI ended in negative territory after trading
rangebound for most of the day, as positive US home sales data was offset by
European finance ministers failure to agree on a debt-reduction package for
Greece. HK+1.4% & SHCOMP+1% outperform the region on speculation
policy makers will add stimulus. Market breadth was negative with
decliners leading advancers 349:275. Future closed 1619 (7 pts discount).
2) Heavyweights: IOICORP-0.82% RM4.87, MAYBANK-0.33%
RM9.01, TM-1.1% RM5.39, YTL-1.7% RM1.70 BAT-1.8% RM2.85, PCHEM+1.43% RM6.40,
AXIATA+0.5% RM5.98, CIMB+0.39% RM7.70
3) DBT: LATEXX 85.2mil @ RM2.30 (38% PUC), PELIKAN 50mil
@ RM1.00 (9.75% PUC - part of Pelikan & CSL share swap, 41% premium)
4) Situational:
THHEAVY+4% RM0.52: Management hinted that it's close to
securing risk service contract (RSC). This is one of a few high-profile
jobs the company is looking at following the restructuring of its business
operations. THHE, has commenced negotiations with an international oil company
(IOC) with the intention of forming a partnership to bid for RSCs in marginal
oilfields.
5) BUMI ARMADA
9 mths Sep 2012
Turnover RM1.18bn Net +16.7%
RM278.1m 9.45sen
20% below cons(f) RM462.5m
Its 3 main core business saw top line growth of FPSO
+22.2% (secured two new FPSO contracts towards the end of the second quarter
2011 - Apache in Australia for the Balnaves field and ONGC in India for the D1
field) , OSV +11.8% (improvement and recovery in the average fleet utilisation
and new vessels acquired), T&I +37.5% (revenue increased as a result of
contribution from the LukOil project secured end of April 2012, recognised on a
percentage of completion basis and charter hire with Momentum Engineering
secured by the Armada Installer in addition to its guaranteed charter days in
the current year to date from Petronas Carigali (Turkmenistan) Sdn Bhd), but Oil field development dipped RM200m which
left total revenue flat.
Earnings however still managed to grow 16% due to higher
EBITA margins as a result of higher margins from its new FPSOs, new OSV vessels
and additional T&I contracts.
Full year results are likely to miss consensus forecast
mainly due to the delay in awarding of FPSO contracts of which Armada is
confident of securing another four in India, Malaysia, Indonesia and West
Africa respectively. HOLD.
6) Market - Maintain current outlook. Expect a possible
technical rebound in the next few sessions as the KLCI could bounce off its
immediate support level of 1620pts but capped at around 1640pts.
