FBMKLCI
1872.38 +10.56pts (+0.57%)
Volume 2.636b Value 2.406b
1) The KLCI
rebounded today helped by heavyweights GENM +4.49%, CIMB +0.97%, PETGAS +1.89%,
HLBANK +3.28% as the index rose +10pts following the stronger US market
overnight after consumer confidence spurred the S&P to close above the
2000pts mark. In the regional market, bourses were mixed as the NIKKEI +0.09%
closed flat following the weaker yen overnight, the HSI -0.62% fell just ahead
of the China Manufacturing numbers next week whilst the SHCOMP +0.11% closed
slightly higher. In the local scene, construction sector -1.30% loss the most
ground as GAMUDA -3.04%, MUDAJYA -6.14%, WCT -2.72% weighed the index down.
Market breadth was skewed towards the negative today as loser beat gainers
today by 439 : 410. Futures closed at 1876 (4pts premium).
2) Heavyweights : GENM +4.94% RM4.67, CIMB +0.97% RM7.25,
PETGAS +1.89% RM22.64, HLBANK +3.28% RM14.46, SKPETRO +1.62% RM4.37, IOICORP
+1.48% RM4.80,GENTING +1.04% RM9.66, AMBANK -0.73% RM6.74.
3) DBT : KRETAM 25.998mil @ R<0.50 (1.38% PUC @ RM7.5%
discount), JAG 20mil @ RM0.21 (2.12% PUC), SNTORIA 5.9mil @ RM1.40 (1.34% PUC @
9.7% discount), YINSON 3mil @ RM2.93.
4) Situational:-
MUDAJYA -6.14% RM2.29 -
Despite the weaker results posted by the group, Mudajaya Corp Bhd's
wholly-owned subsidiary Oracle International Co. Ltd has been awarded a
US$118.8 million (RM375.4 million) offshore equipment procurement works
contract by Amihan Energy Corp (AEC). Mudajaya said the offshore equipment
procurement works is for the 62MW wind energy farm in Cebu, the Philippines and
will commence two months from the date of notice to proceed given by AEC and
the completion date is 18 months from the commencement date.
5) RHBCAP
6 months Total
Income +4.1% RM2.9b Net +31.2%
RM1.007b EPS 39.5 sen
In line with Cons(f) RM2.002b
Total income increased 4.1% from strong double-digit
growth (+20.5%) in Islamic banking income and higher by 4.3% in net interest
income.
Conventional gross loans rose 11.8% with a lower net
interest margin of 2.29% compared to 2.33% in the previous quarter contributed
to increase in net interest income.
Overall, net profit increased by 31.2% year-on-year to
RM1.0 billion underpinned by healthy total income growth, higher write back of
impairment on other assets and significant improvement in the loans impairment
charges. For the first half of 2014,allowance for impairment on loans and
financing decreased significantly to RM71.6million from RM299.4 million
recorded in the same period last year. This was mainly due to individual
impairment allowance made on certain corporate accounts in the preceding
corresponding period and one time bad debts written off pertaining to the
refinement of application of MFRS 139 in last year. In line with business
expansion, manpower cost increased 14% on the back of growth in employee
strength & appointment of key senior personnel.
For the first six months of 2014, the Group recorded
strong loans growth of 8.8% to RM132.5 billion. The growth was broad based,
predominantly from purchase of securities, purchase of residential properties
and working capital.
Asset quality strengthened further with impaired loans
ratio improved to 2.45% vis-à-vis 2.81% in December 2013.
The Group’s liquidity and funding position remained
healthy with loans-to-deposits ratio stood largely unchanged at 88.6%. For the
first six month of the year, customer deposits expanded at a healthy rate of
8.6%, boosted by 10.0% growth in Current Account balances. Meanwhile, Savings
Accounts balances increased by 4.1% over the same period. CASA composition was
at 23.3% as at 30 June 2014.
The Group has successfully launched several initiatives
under the IGNITE 2017 transformation programme during 2014 which provides a
strong foundation for the positive momentum of the transformation programme
which aims to grow the Group into a leading multinational financial services
group by 2020. Barring unforeseen circumstance, the Group expects 2014
performance to be better than 2013.
RHBCap remains a buy on valuation basis with prospective p/bk of 1.26x, however
as the final details of the merger deal with CIMB & MBSB are still pending,
we advocate a hold for now.
6) Market: expect institutional stocks to be well
supported ahead of the month-end closing activities.
