Friday, August 30, 2013

Market Roundup | 28 August 2013


FBMKLCI   1686.17  -15.07pts  (-0.89%)   Volume  2.243b   Value RM3.373b

 

1) The KLCI reached a low of 1660.39 (-40.85pts) in the start before investors step in to snap up heavily sold down stocks as index recovered to closed at day's high. Markets were very jittery across the region following a weaker US market overnight on the back of more concerns from the middle east. Selected stocks saw stronger recovery especially in the afternoon led by SKPETRO +4.01, AXIATA+2%, RHBCAP +2.35%, MUHIBAH +3.03%. Market breadth was negative with losers beating gainers by 631 : 265. Futures closed 1684pts (2 pts discount).

 

 

2) Heavyweights : CIMB -3.65% RM7.11, MAYBANK -1.62% RM9.70, IHH -4.95% RM3.84, GENTING -1.81% RM9.20, AMBANK -0.13%, PCHEM -1.40% RM6.31, AXIATA +1.85% RM 6.60, SKPETRO +4.01% RM3.37

 

3) DBT : TROP 50mil @ RM1.66 (4.535% PUC), HYTEXIN 5.072mil @ RM0.08 (3.382% PUC @ 5.9% discount), MAYBANK 4.093mil @ RM9.70

 

4) Situational:-

 

ASAS RM1.69 - Asas Dunia Bhd has received an unconditional mandatory takeover offer from Tony Chan Holdings Sdn Bhd, Tony Chan Capital Sdn Bhd, Sprintex Ltd and Best Conditions Ltd to acquire all remaining ordinary shares in the company. The offer, previously on a voluntary basis, was for the ordinary shares of RM1 each at a consideration of RM1.70 /share. The joint offerors as at Aug 15 held, or entitled to be acquired or held, more than 50% of the total voting shares of Asas Dunia, as a result of series of acquisitions of the shares by Sprintex and Best Conditions from Jul 29.

 

5) CREST : HY 06/12  Rev -29% RM176.1m  Net+183% RM26.9m  EPS 19.2s

 

 Earnings ex-changes in FV of property of RM14.6m, in line with Cons RM23.8m

 

For 6 months yoy, in the Comstruction division, decrease in revenue was due to completion of certain projects in year 2012 while increase in PBT & PAT was mainly due to higher margin from certain projects for the current year under review. In the investment division, the significant jump in PBT was mainly due to changes in FV of it's investment property recognised of RM14.6m. Qoq, Rev-36% while PBT+147%. The significant jump was again due to the change in FV in the current financial quarter. We continue to like Co for we expect it to launch its affordable housing project, Alam Sanjung in Batu Tiga, Shah Alam (priced between RM300k-RM450k) in the near term. Furthermore, construction works on its Dang Wangi project will be rolled-out in 2H13. We are also positive on the Co's JVs with Prasarana and MRB as this allows the group to obtain prime development land at a cheaper cost. We believe CBH would continue to adopt this "asset-light" model in their property development business as this method would allow the group to participate in more large-scale development without stretching their balance sheets; BOW.

 

6) Market: technical bounce is expected as the market is very oversold; stocks which are attractive for a trade - Alam, AirAsia, CIMB, Dialog, Glomac, Maybank, Maybulk, Naim, Perisai, SKPetro, Sunway, UMW, UEMS.