FBMKLCI
1797.20 -11.68pts (-0.65%)
Volume 1.743b Value 1.804b
1) The KLCI broke below the 1800 resistant to close at
its day low after the US market ended on a weaker note before the weekend. In
the regional market, bourses were generally weaker as NIKKEI -1.15%, SHCOMP
-0.36%, ASX-0.63% all losing grounds; the HSI +0.24% bucked the trend erasing
earlier losses after Mainland exports increased more than expected in
September. In the local scene, TECHNOLOGY stocks continue to tumble losing 4.4%
today following a statement by U.S microchip technologies indicating that the
sector might face a downturn on diminishing demands, INARI -7.01%, MPI -6.51%,
UNISEM -6.84%, VITROX-6.02% all closed lower. Market breadth was negative for a
2nd consecutive day as losers thumped gainers by 757 : 155. Futures closed at
1801.5 (4.5pts premium).
2) Heavyweights : PETGAS-2.82% RM21.36, IOICORP -2.50%
RM4.68, DIGI -1.53% RM5.78, FGV -5.23% RM3.26, MAYBANK -0.72% RM9.63, KLK
-2.44% RM19.98, TENAGA -0.63% RM12.48, PBBANK +1.09% RM18.48.
3) DBT : SCIB 4.036mil @ RM1.22 (5.48% PUC @ 12.9%
premium), TIGER 2.5mil @ RM0.14, KUB 1.2mil @ RM0.54, YINSON 1mil @ RM2.70
(2.2% premium)
4) Situational:-
SPSETIA+0.3% RM3.30 - news reported Permodalan Nasional
Bhd (PNB) may merge SP Setia and I&P Group Sdn Bhd to revive the former,
which is losing ground to rivals after more than 300 talents, including top
executives, left. PNB is considering merging SP Setia with I&P to form the
country's largest property player by asset value and enlarge its product
offerings.
5) MAHB
MAHB passenger volume recorded 6.6million in September
2014, a decline of 1.4% against the high traffic growth of 26% recorded in
September 2013. International and domestic sectors declined by 1.2% and 1.6%
respectively. The decreasing traffic from China, Macao and Hong Kong continued
through September. Overall Europe sector traffic declined by 3.4% in September
2014. Domestic traffic declined by 10.4% at KLIA as well as other airports
including Tawau, Kota Kinabalu, Kuching, Kuantan and Sandakan. There was a drop
of 3 percentage points in the average load factor for both the international
and domestic sectors.
Third quarter passenger traffic performance was slightly
below expectations. While the growth rate was affected by the high 2013 base,
there appears to be an overall decline in demand for travel in the region.
MAHB is however cautiously optimistic that the full-year
passenger traffic should not be significantly different from the base case
target of over 83 million passengers.
Despite falling from its high of RM8.65, it could still
come under further selling pressure continues to trade at a premium valuation
of 33x forward year earnings.
6) The KLCI which has lost about 50pts in the month of
Oct alone is set for a rebound barring any new negative newsflow. Immediate
resistance of 1818pts. We recommend a
trading buy on the following stocks which have retraced significantly, Yinson,
UMWOG, Armada, Titijaya.
