Thursday, July 18, 2013

Market Roundup | 17 July 2013


FBMKLCI   1788.66ts  +2.27pts  (+0.13%)   Volume  1.593b   Value RM2.432b
 
1)The KLCI opened higher for the 3rd straight day but quickly reversed to trade tightly between the a small 4 pts range before closing just 2 pts above parity. The US market snapped a 3 days winning streak as investors retreated after Fed reserve member urged to reduce stimulus and  Coca-cola's profit fell. In the region, most of the market were flat as investors wait for Bernanke's Testimony tonight, HSI +0.28%, SHCOMP -1.01%, NIKKEI+0.11%. O&G sector were active with gains seen in ALAM+7%, PERDANA+9%, and PENERGY+6%. Market breadth was positive with gainers leading losers by 482 : 323. Futures closed 1788.5 (parity).
 
2) Heavyweights : TENAGA +2.66% RM 8.85, MAXIS +1.76% RM6.92, MISC +2.00% RM5.60, CIMB +0.35% RM 8.42, PCHEM -1.05% RM6.55, TM -1.30% RM 5.29, IOICORP -0.71% RM 5.52.
 
3) DBT : EKOVEST 6.226mil @ 2.57 (2.038% PUC @ 10.05% discount), SKPETRO 5.003mil @ RM4.0001 (2.5% discount), SEACERA 3.3mil @ RM0.58 ( 3.07% PUC @ 12% discount)
 
4) Situational:-
 
TENAGA +2.66% RM8.85 - Tenaga Nasional Bhd has been selected by the Energy Commission as the preferred bidder to develop the 1,000MW coal-fired power plant in Manjung, Perak. Tenaga will now enter into negotiations in respect of the bid. The letter of award will be issued upon successful completion of the negotiations. The proposed power plant is expected to come online on 1 Oct 2017.
 
CBIP +0.69% RM2.88 - CBIP entered into a supply agreement with Industrial Aceitera De Casanare Sucursal Colombia for a turnkey construction of a 15t/hour continuous sterilization palm oil mill in Buenaventura, Colombia for a total sum of US$3.4m (or RM10.7m).
 
5) HUAYANG : Q106/13  Rev-18% RM80.5m   Net-25% RM12.3m  EPS 6.22s
 
Results trails, making up only 14% of FY cons RM 89.7m.
 
YOY, on the Property side, lower Revenue & PAT due largely to slower construction progress throughout the group and minimal launches recognition from preceding & current quarters. Rev & PAT from other operations consist mainly of rental income derived from the operation of commercial properties under the "build, operate & transfer" concession with local authorities. Qoq, PBT was lower by 29%. Total unbilled sales as at the end of the quarter stood at RM530m ;  Despite the slower Q1, we remain positive on Hua Yang as we understand the management is still actively looking for pocket landbanks in Klang Valley. Moreover, its FY14E sales target of RM613m will be mainly driven by on-going projects OneSouth, Taman Pulai Hijauan and new projects such as Section 13 (Shah Alam), etc. Note that Hua Yang does not employ any DIBS scheme on its projects.
 
6)Market: Market direction is likely to be dependent on Bernanke's semi-annual report on monetary policy and what he says regarding the QE programs during the Q&A session with the US Congress tonight.