FBMKLCI 1799.59
pts (+2.17pts, +0.12%) Volume 1.491b Value RM2.037b
1) The KLCI rose in the morning breaching past the 1,800
level following strong finish to US DOW overnight as investors expect Federal
Reserve to maintain stimulus after US debt ceiling debacle. Index however
weakened over the day sliding back down to the overnight level during midday
before closing +2pts at auction. In the regional market, HSI +1.06% and SHCOMP
+0.24% trended higher after China data came inline with expectations (Q3 GDP
7.8%, Retail Sales 13.3%, IPP 10.2%)
indicating no slowdown in the world's 2nd largest economy. The local
market traded with tepid volume throughout the earlier part of the day but
picked up in the second half with midcap
stocks outperforming bluechips as the FBM Mid 70 index gained +0.67% boosted by
AIRASIA +3.97%, AIRPORT +2.21%, and YTLPOWR +1.62%. Market breadth was positive
with gainers edging losers by 377 : 331. Futures closed 1798.5 (1pt discount).
2) HEAVYWEIGHTS : CIMB+0.80% RM7.55, MISC+1.96% RM5.18,
YTL+1.29% RM1.56, UMW+1.30% RM12.46, GENTING+0.38% RM10.46, HLFG+2.62% RM15.66,
FELDA-1.79% RM4.38, PCHEM-0.56% RM7.08, IHH-0.95% RM4.15.
3) DBT : BJLAND
117.474mil @ RM0.8982 (2.349% PUC), YTLPOWR 37.620mil @ RM1.86, MISC 4mil @
RM5.10, CRESBLD 2mil @ RM1.30 (1.249% PUC @ 7.6% discount).
4) Situationals;
IRIS +4.00% RM0.265 - Iris Corp Bhd has secured a
US$249.75m (RM793.2mil) 15 years build, own and transfer contract with the
Republic of Guinea for the supply and implementation of secure chip technology
solutions, the information technology firm announced yesterday. It said the
contract will contribute positively to its earnings in its next financial year
ending 31 March, 2015. The contract includes implementation of secure chip
technology solution in the electronic passports, visa, permanent residence identification
cards and its related software and hardware.
WPRTS +6.00% RM2.65 - Westports Holdings Bhd, the largest
public offering in Malaysia thus far this year, made a firm debut on the Main
Market of Bursa Malaysia on Friday with an opening price of RM2.70 (20 sens
above its offer price of RM2.50). The stock saw 202.6mil shares traded in the
market with the vwap of RM2.6425.
5) AEON CR
1H 08/2013
Tover +43.2% RM306.7m Net +40.3%
RM84.5m EPS 58.7 sen
+5.6% (f)
RM160m
The Company's revenue recorded 43.2% growth respectively
for the six months ended 20 August 2013
compared to the previous year corresponding period. Total transaction and
financing volume in the second quarter and six months ended 20 August 2013 was
RM 868 million and RM 1.655 billion, representing growth of 44.2% and 47.0%
respectively from previous year corresponding period. The Company realised
growth in business and receivables based on increased financing transaction
volume and higher growth for the vehicle financing and personal financing
operations.
The financing receivables as at 20 August 2013 was RM
3.048 billion, representing growth of 63.5% from RM 1.864 billion and
(NPL) ratio was 1.64% as at August 2013 compared to 1.53%
as at August 2012.
Other operating income recorded RM 18.658 million for the
six months and 7.42% higher than previous year corresponding period
respectively. This is attributable to continued growth in fee income, including
from sales of insurance products, collection commission and increase in bad
debts recovered.
Ratio of total operating expenses against revenue
improved to 55.0% in the six months ended 20.
The results achieved were due to continued growth in business coupled
with improved cost efficiency from sharp growth in receivables in the period.
Average funding cost in August 2013 was marginally lower compared to August
2012 due to new funding at competitive rates from various sources.
Hold as price has discounted expected tightening by BNM
on household financing with valuations now reasonable in the mid teen in terms
of PE.
6) Market - Expect the KLCI to continue to follow the
global uptrend with markets still flushed with liquidity. Immediate target
remain the 1826pts level for the KLCI.