Thursday, October 31, 2013

Market Roundup | 29 October 2013


 

FBMKLCI   1815.65  -2.74pts   (-0.15%)   Volume  1.810b   Value 1.892b

 

1) The KLCI slipped lower on profit taking across the board as buying interest dwindled after the Budget announcement on Friday. Global bourses were weaker as investors retreated to the sidelines just ahead of a 2 day US Fed Reserve policy meeting today where the indicated timeline for QE tapering would be clarified. The regional markets were mixed with SHCOMP -0.23% closing lower after PBOC's first cash injection failed to reduce money market rates, the benchmark HSI +0.18% however, closed higher. In the local scene, penny stocks were actively traded as HUBLINE 0.00%, CENSOF +5.217% and TALAMT  -6.66% tops the list of most active stocks. Market Breadth turned positive in the later session of the day as gainers beat losers by 418 : 379. Futures closed at 1817.5 (2pts premium)

 

2) Heavyweights: MAYBANK -1.50% RM9.81, TENAGA -1.26% RM9.36, SKPETRO -1.91% RM4.09, CIMB -0.52% RM7.60, UEMS -2.80% RM2.43, DIGI +2.63% RM5.06, UMW +1.56% RM13.00, PPB +1.23% RM14.80.

 

3) DBT : SCICOM 10mil @ RM0.54 (3.47% PUC @ 22% discount), BHS 9mil @ RM0.98 (11.25% PUC @ 6.6% discount), IJM 6.813mil @ RM5.827

 

4) Situational:-

MUDAJYA + 1.39% RM2.90 - Mudajaya Power International a wholly-owned subsidiary of Mudajaya, acquired a 40% stake in Amihan Energy Corporation (AEC) for Php26.4m (RM1.9m). AEC is based in the Philippines and was granted a 25-year exclusive rights by the Department of Environment (DOE) to develop wind energy resources in Cebu. The venture involves a development of up to 200MW wind energy farm on an 18.2k ha land in phases over the next 5 years with an initial development of up to 50MW.

 

 

5) Globetronics

9mths 9/2013    Tover +18.6% RM2.42.3m    Net +31% RM39.5m   EPS 14sen

        In line with cons(f) RM51m

 

Top line growth recorded from higher volume loadings for most product segments. Better economy of scale has helped improve margins particularly in the sensor product space. 4Q should see initial contribution from another product, LED flash. It remains on track to deliver another record profit year record profit for FY 2013 with targeted growth of 30% from multiport sensors and optical lenses in 2014.

 

Currently at 16x PE current financial year, with a cash backing of RM0.53/share, we continue to recommend accumulation for its attractive yield of 6%.

 

6) Market - Rotational play on mid/small caps stock to continue with the KLCI support above the 1800pts levels