FBM KLCI
1783.03 -5.4 pts ( -0.3%) Volume
2.95b Value RM2.7b
1) The KLCI opened higher, shrugging off profit taking
sentiments from the day before, before trending lower through the sessions to
close 5.4 pts down . This despite higher regional markets, led by Japan, after
the yen touched a 4.5 year low against the dollar, boosting earnings outlook
for exporters. Market volume was dominated by penny names, NICORP+7%,
HUBLINE+8%, IRIS+22%, PATIMAS+10%. Plantation -0.7% underperformed, led by
IOICORP -3% , which announced its proposal to de-merge the property development,
property investment and other property related businesses to IOI Properties.
Despite the lower index, market breath was positive, with gainers outpacing
losers 606:287 . Futures closed 1779 pts ( 4.03 pts disc) .
2) Heavyweights: PPB+2.4% RM13.90, BURSA+2.6% RM7.99,
MISC+2.8% RM4.48, CARLSBG+1% RM15.64, MRCB+1.2% RM1.70, FGV+0.9% RM4.59,
DIGI-1% RM4.68, SPSETIA-1% RM3.87, TM-0.5% RM5.46, CIMB-0.8% RM8.40.
3) DBT: COASTAL 5m @ RM2.15, HAPSENG 2.5m @ RM1.80,
BAHVEST 1m @ RM0.99.
4) Situational;
CATCHA MEDIA +19% RM0.525 : after Co announced that it's
subsidiaries and Says Sdn Bhd are in a RM60.0m merger deal that would see the
formation of a digital advertising business. Catcha Media today entered into a
term sheet agreement to merge certain assets with Says Sdn Bhd, the owner of
Says.com. The Catcha Media businesses that will be merged with Says.com include
digital advertising businesses that currently reach 9.8m Malaysians every
month, and its publishing business that currently publishes 15 magazine titles.
UOADEV +4.9% RM2.55 : Co announced it's Q1 results during
the lunch break, with Rev+157% & PAT+190% yoy. It recorded positive sales
of RM928.7 million for the quarter under review with strong sales contribution
by completed projects - Binjai 8 in Kuala Lumpur and The Horizon Boutique
Office Towers in Bangsar South; on-going development project - One@Bukit Ceylon
in Kuala Lumpur city centre and newly launched projects - Desa Green in Taman
Desa, Scenaria at North Kiara Hills and Kencana Square in Subang. Balance sheet
position is strong, with cash equivalent of RM688.8 million as at 31 March
2013. It also undertook a revaluation exercise on it's properties, registering
a gain of RM4.2m which was recognised in Q1.
5) DIALOG
9mths Mar 2013
Tover+37% RM1.55bn Net+2%
RM133.3m EPS 5.9sen
15% below consensus (f)
RM210.33m
Revenue rose 37% mainly from contributions at Pengerang
Deepwater Terminal in Pengerang, Johor while increased fabrication activities
and sales of the Specialist Products and Services boosted revenue from
international operations in Singapore, Indonesia, India, Middle East and
Russia.
Net profit was only higher by 2% to RM133.3 million
despite the significant increase in revenue as Dialog was affected by the additional
cost overrun experienced by a plant maintenance project undertaken in
Singapore. Profit was also dragged down by higher finance and operating
expenses.
QoQ, PBT was lower by 6% from RM56.3 million to RM53.2
million mainly from above reason.
Dialog's future prospect remains intact as group will
benefit from contributions via EPCC and fabrication activities for Pengerang
Terminal where first phase of the project is scheduled to be operational for
the first oil commissioning in 2014.
Upstream Marginal oilfield are also progressing ahead of
schedule with Balai field drilling fifth well out of the six in the program.
Its RSC with Roc Oil and Carigali at Bayan Field has also commenced activities
for redevelopment of the field. Co is also in process to secure potential
partners for its subsequent LNG storage terminal.
Dialog remains a front runner for fabrication &
construction jobs from the Petronas USD20bn Rapid project which is in the
vicinity of its tank terminal and earnings are expected to continue to improve
as Ph 1 Pengerang progresses more aggressively towards end of 2013 coupled by
sustainable recurring incomes from fabrication jobs for Balai and Bayan fields
- HOLD
6) Market: the
current trading sentiment is expected to persist with the lower liners and
laggards attracting interest while the fundamental stocks remain well bid on
any weakness. Near-term trading range for the KLCI is at 1750 - 1800.