FBMKLCI
1745.42.36 -32.94pts (-1.85%)
Volume 2.616b Value RM3.749b
1) The KLCI broke down today recording a 5th consecutive
loss following the US market that closed lower after treasury yield jumped to a
2 year high as investors await FOMC minutes this Wednesday as well as the
outcome of the summit at Jackson Hole this weekend. The regional market were
also bearish as losses were led by JCI -3.21%, NIKKEI -2.63%, SET -2.62%, HSI
2.20%, SHCOMP -0.62%. In the local market, selling pressure picked up in late morning with index hitting an intraday
low of 1737.58 (-40.78pts) as key heavyweights CIMB -4.05%, MAYBANK-4.59% saw heavy
trading volume today. Market breadth was negative with losers overshadowing
gainers by 964 : 75. Futures closed at 1740 (5 pts discount).
2) Heavyweights : MAYBANK -4.59% RM9.96, CIMB -4.05%
RM7.58, AXIATA -3.62% RM6.79, SIME -1.79% RM9.32, GENTING -2.14% RM9.60, PBBANK
-0.92% RM17.14, MISC -5.32% RM4.80, MAXIS -1.94% RM7.06
3) DBT : KEURO 23.1mil @ RM1.3288 (4.03% PUC @ 9.8%
premium), SYF 5.5mil @ RM0.60 (2.01% PUC), ASUPREM 2mil @ RM0.31 (34% premium).
4) Situational:-
DAYA -2.81% RM0.345: A unit of Malaysia's Daya Materials
Bhd has landed a major deal worth up to MYR440m ($133.4m) for an offshore
subsea construction vessel long-term charter contract from Norway's Technip
Norge AS for work in the North Sea and North Atlantic. Daya OCI (Labuan) Ltd
(DOCIL) unit had been awarded the deal to provide the vessel along with a range
of offshore services on a long-term charter basis for a period of 100 to 175
days per year for seven years, commencing this month until 2020.
5)PERDANA: HY06/13 Rev+6% RM128.4m Net RM24.3m ( Loss
RM3.1m LY) EPS 4.86
Results
makes up 45% of FY cons RM53.8m
For Q2 yoy, higher revenue mainly due to improvement in
vessel utilization and charter rates in the current quarter. The significant improvement
in PBT was mainly attributable to higher operating profit contributed by the
increase in charter rates & vessel utilization & lower expenses (as Q2
last year included forex losses RM1.7m, impairment loss of refundable deposit
RM1m & higher finance cost of RM1.2m). Qoq, Revenue+26%, PBT 17%. These
improvements are primarily driven again by the increased utilization &
charter rates, but slightly offset by mobilization cost for vessels under the
new long term contracts; We are still positive on Perdana. Medium to long-term
prospects are stable on the back of PERDANA's long-term contracts. For its
existing vessels, at least 10 are chartered till 2018-2019; and another 3 are
up till 2014-2015. Only 4 vessels (1 accommodation barge and 3 AHTSs) are on spot
charters which Co is confident on securing recurring contracts. Longer-term
prospects will hinge on it's future fleet expansion - Accumulate, and ride the
wave of improvement in Perdana's charter and utilisation rates, which is the
driving force behind the company's strong earnings recovery in FY13.
6) Market: even though the market has reached oversold
territory, selling momentum is likely to persist with continued concerns on
rising bond yields & weakening
currencies. Initial support
levels are at KLCI 1723/18 and the sma200 & psychological support at KLCI
1700.