FBMKLCI
1742.87 -32.25pts (-1.82%)
Volume 2.134b Value RM2.795b
1) The FBMKLCI broke below key support of 1765pts as the
market begun its correction phase with all of the index linked stocks closing
lower led by MAYBANK, GENTING and TENAGA. Global bourses continued to fall
following weaker DJIA overnight while SHCOMP -2.83% fell to a 6 months low
behind economic data (Industrial production and export) that missed estimates.
PROPERTIES -3.56% and FINANCE -2.04% led overall market lower as market breadth
was negative thruout with losers towering over gainers by 803:142. Futures
closed 1736.5 (6.37points discount)
2) Heavyweights : MAYBANK -4.01% RM 10.04, GENTING -6.17%
RM10.34, TENAGA -2.54% RM8.05, AXIATA -1.81% RM6.48, PCHEM -2.90 RM6.36, SIME
-1.25% RM9.46, IOICORP -1.88% RM5.20, AMBANK -2.89% RM7.05.
3) DBT : MAYBANK 12.5mil @ RM10.20 (1.6% premium),
HUBLINE 9mil @ RM0.04 (27% discount), BORNOIL 3mil @ RM0.55 (1.50% PUC @ 25%
premium)
4) Situational:-
SCABLE -2.5% RM1.88 - share price rose to high of RM1.97
after Sarawak Cable Bhd's unit Trenergy Infrastructure Sdn Bhd has bagged a
RM32.87m contract from Sarawak Energy Bhd for a transmission line project. It
said on Wednesday it said it had received a letter of acceptance for the
Tudan-Miri Airport 132kV transmission line project. Work was expected to start
next Monday and to be completed on Sept 16, 2014.
5) TOP GLOVE
9mths 5/2013
Tover +2.9% RM1.76bn Net +6.7%
RM148.1m EPS 23.9sen Div7sen
15%
below cons(f) RM230.5m
There was a marked improvement of 17% in sales volume on
the back of lower average selling price from the declining raw
material price. Continued pick-up in demand, newly
installed capacity, which facilitated an increase in nitrile glove sales and a
more competitive pricing structure accounted for the higher sales volume
achieved in the recent quarter.
Net profit for the 3Q decreased mainly due to the impact
of foreign currency and the aforementioned competitive pricing It also
recognised unrealised forex losses amounting to RM10.9 million from the fair
value on its US Dollar (USD) foreign exchange
forward contracts and Australian Dollar (AUD) fixed
income investments.
Raw material costs are expected to trend at current
levels with a possibility of a further downward inclination in the second half
of 2013, which will exert a positive impact on performance.
Expansion plans to increase the number of nitrile glove
production lines will see current total of 470 lines to increase to
538 lines by April 2014, further boosting its production
capacity from 41.1 billion to 47.9 billion pieces of gloves per annum. Hold. Market perform maintain.
6) Market - Technically with most markets in deep
oversold territory of RSI below 20, a technical bounce seems likely in the near
term. But with confidence severely shaken by the steep sell off, any attempt of
a rebound will be met with aggressive profit taking. KLCI to trade in a range
btw 1700-1750pts level.