Market Roundup | 21 May 2015

FBMKLCI 
1795.04   -15.07pts (-0.83%)      Volume
2.447b   Value RM2.284b

 

1) KLCI saw heavy selling of key heavyweights in the 2^nd session as index broke below the 1800pts psychological level with losers paced by CIMB, AXIATA, DIGI as investors digested details from the 11MP announced in the morning. Regions were flat HSI-0.3%, STI unch while SHCOMP+0.9% following Flash HSBC PMI which missed estimated at 49.1 signalling possible intervention from government. Tech-1.5% saw profit taking led by UNISEM-5%, INARI-2% as broad base selling saw decliners thumping gainers by 628 : 259. Futures closed at 1785.5 (9.5pts discount).

 

2) Heavyweights : CIMB-2.5% RM5.86, AXIATA-2.53% RM6.55, DIGI-2.7% RM5.79, MAYBANK-1.3% RM9.25, IHH-2.5% RM5.85, SKPETRO-3.4% RM2.58, TM-1.8% RM7.46, IOICORP-1.7% RM4.09

 

3) DBT: TMS 10.365mil @ RM0.065, RAYA 2.5mil @ RM0.15

 

4) Situational:-

PMETAL-3.9% RM2.69: Company announced that they have decided to cease its operations in Samalaju plant a month pending a clean-up and to carry out repair for these damaged pots and the necessary testing before commissioning. This is following the fire incident which has occurred on the 19^th May.

 

5) VITROX

1Q Mar 2015  Tover +45.7% RM33.26m    Net 9.3m   EPS 4c

                    35% below cons(f) RM57m

The increase in revenue against the same quarter last year was mainly due to increase in revenue from Automated Board Inspection (ABI). Revenue from ABI has recorded an increase of 96% against the corresponding period of preceding year. Earnings improvement from RM4m to RM9.3m YOY was attributed to increase in revenue recorded and appreciation of US Dollar.  

 

The lower than expected numbers can be partly attributable to a seasonally lower 1qtr however price has rallied 60% YTD with valuations now in line with most smaller cap tech names hence we recommend a hold at these levels.

 

6) Market – The KLCI could struggle to reclaim the previous trading range of 1880-1830pts as the much anticipated 11MP today proved to be largely uninspiring (more details will be revealed tomorrow morning in our research piece). Furthermore Petronas 1Q numbers will be announce tomorrow with expectations of more cost cutting measure rhetoric likely.