Thursday, September 26, 2013

Market Roundup | 25 September 2013


FBMKLCI   1784.06    -8.42pts   (-0.47%)   Volume  2.211b   Value 2.053b
 
 
 
1) The KLCI slipped for a 3rd consecutive day following the US market which declined on the back of concerns over budget ceiling talks. In the regional market, bourses were mixed as the HSI +0.13% closing above boosted by raw material producers while the SHCOMP -0.41% and the NIKKEI -0.76 both closed lower amid negative sentiments from the west. In the local market, blue chips continue to fall with ASTRO -2.33%, BAT -2.00 and UMW -1.25% leading in losses while CIMB -1.39% and MAYBANK -1.20% were heavily traded for the day. Market breadth was negative with losers beating gainers by 420 : 359. Futures closed 1782 (2 pts discount).
 
 
 
2) Heavyweights : CIMB -1.39% RM7.79, MAYBANK -1.20% RM9.85, PBBANK -0.55% RM17.78, BAT -2.00% RM63.50, HLBANK -1.67% RM14.12, ASTRO -2.33% RM2.93, UMW -1.25% RM12.56, MAXIS +0.57% RM7.04.
 
 
 
3) DBT : KHSB 254.563mil @ RM0.836 (56.56% PUC, matching KPS stake), NARRA 8.15mil @ RM1.71 (13.106% PUC), HUBLINE 3.959mil @ RM0.05
 
 
 
4) Situational:-
PERWAJA +2.81% RM0.365 -  Perwaja Holdings has been allowed to postpone the repayment under the Murabahah medium-term notes programme to November 29. This involves the RM50.0m principal due today and pre-contributions profit of RM2.85m into the finance service reserve account.
 
FRONTKN +26.66% RM0.095 - Frontken Corp will see a boost in its earnings this year after having secured a RM110.6m contract to serve as the main contractor for the engineering procument, construction and commissioning works at Tanjung Bin, Johor. The project is expected to be completed within 20 months from the date of the LOA. The scope of work relates to the ATB Ph-2 Terminal and jetty topside facility for the proposed development of a hydrocarbon storage and distribution facility at Tanjung Bin.
 
 
 
5) BINA PURI
 
The company accepted the Letter of Award from Sime Darby CapitaMalls Asia Sdn. Bhd. to undertake the construction and completion of super-structure works for the project involving a 13 storey Business Complex at Pusat Bandar Melawati, Bandar Ulu Kelang, Mukim Setapak, Daerah Gombak, Selangor Darul Ehsan  for contract sum of RM441m .The contract period shall be 24 months.
 
 
 
With the latest award, the Group has thus far secured RM775.27 million projects in 2013 . The Group's current unbuilt book order stands at RM1.91 billion as at to date.
 
 
 
We prefer more established construction names such as Gamuda and IJM for exposure to the construction sector as BP continues to disappoint on their profit margins, achieving low single digit numbers despite its sizeable order book vs its market cap.
 
 
 
6) Market - Consolidation with downward bias to around the 1767pts levels with no main drivers in the short term.