FBMKLCI
1777.15 +7.99 pts (+0.45%)
Volume 2.95b Value RM2.82b
1) The KLCI opened higher, on the back of stronger Dow
last Friday & in tandem with higher regional markets. The positive
sentiment carried through the sessions, with the index comfortably holding on
to gains and closing 8 pts higher. Buying was widespread, with all sectors
registering gains: Property+5.2% once again out-performing led by NAIM+11.3%,
UEMLAND+10.7%, IJMLAND +6.5%, MAHSING+4.9%. Construction+2.2% too chalked up
significant gains, MRCB+5.3%, MUHIBAH+3.6%, WCT+4.7%. Market breadth remained
positive, with gainers overwhelming losers 845:163. Futures closed 1775 pts (
2.15 pts disc).
2) Heavyweights : IOICORP+2.9% RM5.29, BURSA+2.1% RM8.16,
CIMB+1.2% RM8.43, DRB+2.2% RM2.78, GENM+2.4% RM3.90, UMW+1.4% RM14.20,
SIME-0.2% RM9.48, GENTING-0.4% RM10.72, MAXIS -1.1% RM6.92, PCHEM-0.3% RM6.53.
3) DBT: BORNOIL 7m @ RM0.45 ( 9% below day's low), TRIPLC
4m @ RM1.00 ( huge disc to close of RM1.48)
4) Situational;
INSTACOM +7.6% RM0.425 : after it was reported that Group had secured a contract to build the
telecommunications network and infrastructure to facilitate the wiring-up of
schools in Sarawak under the Education Ministry's 1Bestarinet project. The
infrastructure project is worth some RM200.0m. However, it is unclear what kind
of profit margins the company would be getting from this, considering it is
playing a subcontractor's role. 1M Utama Sdn Bhd is the main contractor for the
project.
5) FAJAR
9months Mar 2013
Tover+4.8% RM138.7m Net RM2.9m
vs (1.1mil) EPS 1.55sen
Cons(f) RM6.9m-way below consensus
YoY revenue was boosted by higher construction activities
as delayed construction projects started
to pick up pace. Group also commenced trading of building materials which
accounted for revenue of RM9.8mil and consumed mainly by appointed sub
contractors.
QoQ revenue was up 82% from pick up in construction
activities. The Group pre-tax profit for the current quarter was arrived after
the capitalization of interest expenses amounting to RM1,036,536, which were
being charged out in the preceding quarters.
Going into FY14, we would expect a better earnings
recovery from Fajar as we believe that it would be able to go on a full swing
execution of its remaining order book of c. RM800m which will last the co
another 3yrs. Fajar is also working on property projects following land
acquisition in 2011 in Sentul (2.3acres) and Kinrara (6.8acres). In light of
recent swing of interest into penny stks, this construction name may see
further upside as it is still a main beneficiary from Sykt Prasarana's future
awards of contracts since co has been promoted to main contractor status as
well as further subcontracting work for MRT2 lines etc.
6) Mkt - higher
beta names continue to hog the limelight as buying interest rotates amongst mid
to small caps. Amongst situational stks that still look attractive are DRB,
MMC, MRCB, KKB (for Sarawak theme play) as the KLCI trades rangebound ahead of
hol shortened wk.
