Friday, October 19, 2012

Market Roundup | 18 Oct 2012

FBM30 1665.42  +4.75points (+0.29%)    Volume 1,297mil    Value 1,533mil
 
1) KLCI was firmer, raising in tandem with the regionals as markets were buoyed by Chinese Premier Wen Jiabao's comment that china's economic growth has started to stabilize while US housing starts beat estimates overnight. Steel players were also firmer led by ANNJOO+3%, LIONIND+3%, HIAPTEK+3% after Malaysia Competition Commission (MyCC) decision to gather information in response to anti-competitive claims. Market breadth was positive with advancer leading decliners 403:304. Futures closed 1667.5pts (2 points premium).
 
2) Heavyweights: AXIATA+1.38% RM6.60, MAXIS+1.61% RM6.96, DIGI+0.73% RM5.49, GENTING+0.8% RM8.87, PCHEM+0.91% RM6.65, HLBANK+1.57% RM14.20, PPB+2.13% RM12.46, MAYBANK-1.83% RM9.11
 
3) DBT: BJCORP 7mil @ RM0.63 (3.8% discount), TIGER 5mil @ RM0.145, DIJACOR 4.2mil @ RM1.03
 
4) Situationals:
THHEAVY+13% RM0.565: THHEAVY announced a third consecutive net profit of RM4 million or 0.49sen a share on the back of RM46.6 million revenue positioning the company for consideration of an early upliftment from its PN17 status. Since it was placed under PN17 THHEAVY has completed its regularization plan that managed to raise RM106 million fresh capital through a rights issue and acquired a fabrication yard at Pulah Indah for RM83.8 million. YTD, THHeavy has an outstanding order of about RM170 million as at Oct 1, mainly from the Sarawak Shell and Aquatera-West Desaru Projects awarded earlier this year.
 
5) Crest Builder (CBHB)
Signed an MOU with UNITAR in respect of Tierra Crest, Kelana Jaya. CBHB is poised to tie up on an agreement with UNITAR, whereby the university will be leasing approximately 85% of the total lettable area of 280,000sq.ft. UNITAR expects to occupy the building by June 2013 after CBHB delivers the completed development by the first quarter of 2013.
Tierra Crest is a 16 storey development project constructed on a land area of approximately 1.82 acres with two office towers and retail units which will occupy the three base levels. This RM140 million project consist only two units per floor in the office towers with a built up area of 8,000 sq. ft perunit.
 
The balance of net lettable area in Tierra Cres will be earmarked for retail and CBHB will engage its own property management for these units under the group.
 
The company was earlier in the limelight after securing the Dang Wangi and MRB projects with a combined GDV of approximately RM2.4 billion. +ve
 
6) Market - Bargain hunting in major laggard stocks to continue as investors position themselves for a stronger year end closing and 1Q 2013. Steel companies which have largely been ostracized by the investment community is showing signs of a revival as they are trading down to 0.4x price/book levels. Our favourites in this space include Hiap Teck and Lion Ind.