FBMKLCI
1722.49 +1.42pts (+0.08%)
Volume 1.504b Value RM1.757b
1)The KLCI traded in positive territory albeit with thin
volume and traces of profit taking throughout the day after the US closed
better before the weekend as treasury yield fell lower behind weaker home sales
that tempered with expectation of a cut in QE in Sept. In the regional market,
SHCOMP gained 1.90% after an increase in forecasts for China's outlook by CS
and Duetsche. In the local market, PLANTATION +1.04% index outperformed after
Palm oil Futures KO3 +64pts gained behind rising Soyprices futures, some of the
stocks which carried the index were IOICORP +1.90%, GENP +2.17%, FGV +0.68%.
Market breadth was sorely negative with losers beating gainers by 513 :
305. Futures closed 1719 (3 pts
discount).
2) Heavyweights : AXIATA +1.22% RM6.60, IOI +1.90%
RM5.35, DIGI +1.96% RM4.67, TENAGA +1.17% RM8.65, GENM -2.85% RM4.08, CIMB
-0.79% RM7.48, UMW -3.14% RM12.92, SKPETRO -1.95% RM 3.51
3) DBT : HYTEXIN 4.9mil @ RM0.085 (3.267% PUC @ 5.6%
discount), PRTASCO 4.444mil @ RM1.35 (1.354% PUC), BAHVEST 1.267mil @ RM1.3837
(6.6% discount)
4) Situational:-
AXIATA + 1.22% RM6.60 - Axiata plans to raise at least
$500 million in an initial public offering of its telecommunications tower
assets. Axiata is working with CIMB Group Holdings Bhd., Goldman Sachs Group
and JPMorgan Chase. on the IPO, which may take place next year.
5) DAYANG : 6 mths 06/12 Rev+5% RM199.5m Net+143% RM93.7m EPS 17.04 Div 10s
Results,ex-reclassification of FV reserves of
RM32.8m,makes up 40% of Cons FY RM152m
For 6 months yoy, higher revenue mainly due to higher
fleet utilization and higher revenue from topside maintenance services. PBT,
ex-reclassification of FV reserves increased 21%, due to higher profit margin
contribution from topside maintenance services. The reclassification of FV
reserves of RM32.8m to P&L is occasioned by the re-measurement of the
investment in Perdana Petroluem from an available-for-sale investment to an
equity accounted associate. Qoq, Revenue+27%, PBT+19%. Higher revenue here attributable
to higher vessel utilization rate & higher work orders received and
performed in the current quarter. Increase in PBT was relatively lower as work
orders in current quarter have a slightly lower margin contribution. The
group's associate Perdana Petroluem contributed RM3.4m, a 166% increase from
the preceding quarter ; Results deemed in line as 2H expected to be stronger,
with group's on-going contracts of above RM4b, expecting to last until 2018. We
expect to see earnings strengthen from 2H13 onwards as 3Q are typically
stronger quarters and earnings are bolstered by the new Pan Malaysia contracts
which we expect will kick-in at tail-end of 2013 - Accumulate.
6) Market: a potential technical bounce is in store
towards the Malaysian Independence Day & the US Labour Day weekend as the
KLCI is heavily oversold
