Tuesday, August 14, 2012

Market Roundup | 13 August 2012

FBM30 1646.32             +0.96points (+0.06%)       Volume 982.6mil         Value 1,227mil      

1) KLCI achieved 1650.42 (+5.06pts) a new high in morning before paring its gain on concern China's economic slowdown will deepen amid waning export demand while Japan GDP came in below estimates stocking fears of a global slowdown. REITS was firmer let by CMMT+3%, SUNREIT+4% and
PAVREIT+1.5% ahead of IGB REIT pending listing in Sept. Overall market was thinly traded as market breadth turned negative with decliners outpacing gainers 422:321. Futures closed 1649pts (3 points premium). 

2) Heavyweights: DIGI+1.7% RM4.79, PETGAS+2.38% RM19.78, MAXIS+1.95% RM6.78, GENM+2.06% RM3.46, PETDAG+2.78% RM22.96, AXIATA-1.67% RM5.88, IOICORP-1.90% RM5.17, GENTING-1% RM8.88

3) DBT: GLOTEC 33mil @ RM0.06 (25% discount), SCOPE 6mil @ RM0.30 (25% discount)

4) Situationals:
E&O-19% RM1.54: Share price fell after SC maintained that SIME does not need to make a mandatory general Offer for shares in E&O refuting claims from an online news portal last Friday. The judicial review which is pending in court has been postponed to Oct 4th.

SILK+5.26% RM0.40: SILK announced contract extensions from Petronas Carigali Sdn Bhd worth RM35.4mil for the provision of 2 AHTS.

5) DIALOG
FY JUNE 2012 Tover+35% RM1633m        net+13.5% RM181.8m        EPS7.67sen
Inline Cons(f) RM178.6m

FY Revenue increase 35% mainly due to full year contributions of Fitzroy Engineering and commencement of operations by Langsat Terminal (One) - Phase 3 in September 2011 and Langsat Terminal (Two) in January 2012. Singapore operation however registered lower revenue due to lesser works undertaken for its engineering & construction and plant maintenance activities.

Qoq, Revenue and profit before tax increased by 19% and 14% respectively. The better performance was mainly attributable to higher contributions from Engineering & Construction activities in Malaysia due to ongoing development of Langsat Terminal Three and commencement of Pengerang Terminal. The provision of Specialist Products & Services for International operation also recorded better performance in the current reporting quarter.

Going forward, Earnings growth will be underpinned by development in Pengerang Terminal and development and production of petroleum under the Balai Cluster Small Field Risk Service Contract with its partners Roc Oil and Petronas Carigali. HOLD

6) Market - Tight trading range to be maintained ahead of next week's Raya holiday shortened week. Maintain BUY on Genting and Armada as we feel recent negative news already priced in.