FBMKLCI
1862.84 +2.41pts (+0.13%)
Volume 1.811b Value 1.963b
1) The KLCI rose today inline with the stronger US market
overnight as sentiments were renewed after Fed Reserve Chairman, Janet Yellen
stated that the Bank will continue to support the U.S growth of the economy.
Similiarly, regional bourses were higher boosted by a better set of China Trade
data in April as the HSI +0.42%, SHCOMP +0.26%, NIKKEI +0.93% and ASX +0.75%
all closed in positive territory. In the local market, selected lower liners
and laggards saw buying interests today as optimism from the global sentiments
fuelled investors' confidence, some of the stocks such as INARI +4.08%, PELIKAN
+6.98%, MEGB +8.97%, INSAS +3.33%, WPRTS +3.39% all recorded gains. Market
breadth was positive with gainers beating losers by 444 : 332. Futures closed
at 1860 (2.5pts discount).
2) Heavyweights : AXIATA +0.89% RM6.80, GENTING +0.71%
RM9.82, DIGI +0.72% RM5.58, GENM +1.20% RM4.21, ASTRO +2.79% RM3.31, MAYBANK
+0.30% RM9.81, PETDAG -10.0% RM26.90, MAXIS -2.57% RM6.80.
3) DBT : CRESNDO 10.463mil @ RM2.60 (4.58% PUC @ 9.8%
discount), PWROOT 9.897mil @ RM1.86 (3.26% PUC), CHHB 3mil @ RM1.50, TAMBUN
1.257mil @ RM1.98, TITIJYA 250k @ RM2.05.
4) Situational:-
TROP 0.00% RM1.59 - Supreme Converge Sdn Bhd, a
wholly-owned subsidiary of the Tropicana, had
entered into a Subscription and Shareholders' Agreement with Agile Real
Estate Development Sdn Bhd to jointly acquire the TBBD Land and to develop the
TBBD Land as a mixed commercial development project by incorporating a new
30:70 JV known as Offshore Triangle Sdn Bhd.
The JV Co entered into a conditional sale and purchase agreement with
Tropicana Bukit Bintang Development which has agreed to purchase 8 parcels of
freehold land all in Bandar Kuala Lumpur measuring in aggregate approximately
3.138 acres for RM448,439,901.08.
5) PCHEM : Q1 03/14 Rev-15% RM3.81b Net-32% RM0.75b EPS
9s
Result
trails, making up 21% of FY cons RM3.64b
For 3 months yoy, lower revenue was mainly due to lower
volumes & softening prices for both the Olefins & Derivatives and
Fertilisers & Methanol segments. Production was mainly affected by methane
gas limitation in first half of the quarter at the group's methanol facilities.
Group also undertook statutory turnaround activities at its urea plant in
Bintulu. PAT was 32% lower largely due
to lower sales volume. Similarly, EBITDA -30% at RM1.2b. Qoq,
revenue+14% supported by higher sales volume as a result of stronger
operational performance. Plant utilization improved from 66% to 80% on the back
of improved plant performance subsequent to completion of turnaround at the
group's main cracker and its related downstream facilities. PAT for the current
quarter +68%, driven by higher volumes of ethane-based products, further
supported by lower maintenance expenses. Ahead, although FY14 remain
challenging due to heavy maintenance activities, we expect it to be less heavy
than FY13. Nonetheless, we expect overall plant utilisation to improve slightly
to 78.4% in FY14 from 77.9% in FY13. We continue to like PChem for its strong
parentage, good governance and experienced management. Key re-rating catalysts
includes a government sanction on the RAPID project, better-than-expected
operational efficiencies, higher-than-expected product selling prices and a
stronger US$; HOLD.
BARAKAH : announce that its wholly-owned subsidiary
company, PBJV Group Sdn Bhd has received a LOA from PETRONAS Dagangan Berhad
for the engineering, procurement, construction and commissioning of biodiesel
storage and blending facilities and its associated accessories at PDB Fuel
Terminals in East Malaysia in Sepangar Bay, Sandakan, Labuan, and Miri. Work
for the Contract is expected to commence immediately and is scheduled to be
completed by September 2014. The value of the Contract is RM29m ; +ve, contract
is expected to contribute positively for the duration. This is Barakah's 3rd
win this month, after it's 50:50 JV won a RM260m contract from Petronas Gas Bhd
for the procurement, construction and commissioning of Pengerang Pipeline &
also received a LOA from GOM Resources Sdn Bhd for the provision of
pre-commissioning services for 28" x 282km pipeline in Kerteh Terengganu. The contract win also shows
group's ability in securing new contracts. It's Arab Saudi T&I contract's
new submission date for the retender will be in May-14. The award of this
contract seems to be in Sep-14 with project commencement by CY15. Besides this
major catalyst, we understand that Barakah has been actively involved in
bidding for new projects with its current tender book of RM400m-RM600m.
6) Market: Further consolidation expected following the
recent run up in second liners. Support at 1850 level remains.
