Friday, November 1, 2013

Market Roundup | 31 October 2013


1) The KLCI slipped further into negative territory led by the weaker US market overnight that sagged after Fed Reserve pegged weaker growth outlook to the economy despite delaying the tapering of QE till next year. The sentiments from the west saw an overspill effect on regional bourses as NIKKEI- 1.20%, SHCOMP -0.87%, HSI -0.42%, all closed lower today. In the local market, most of the CI bluechips stocks traded in the red as persistent selling pressure blanketed the index, biggest losers among the bluechips were UMW -2.73%, HLFG -2.57%, CIMB -1.71%. Market breadth was negative as losers outpaced gainers by 457 : 327. Futures closed at 1808pts (1pt premium).

 

2) Heavyweights FBMKLCI   1806.85  -10.53pts   (-0.58%)   Volume  1.881b   Value 2.197b: CIMB -1.71% RM7.47, GENTING -1.09% RM10.88, PBBANK -0.54% RM18.30, MAYBANK -0.61% RM9.76, UMW -2.73% RM12.80, SKPETRO -1.47% RM4.00, IHH -1.43% RM4.13, TENAGA  +0.53% RM9.43.

 

3) DBT : IJM 10.413mil @ RM5.8096, TROP 3.850mil @ RM1.44, CWORKS 3.75mil @ RM0.175 (3.40% PUC).

 

4) Situational:-

PERDANA +0.99% RM2.04 - Perdana Petroleum Bhd (PPB)'s wholly owned subsidiary Intra Oil Services Bhd has received from Alam Maritim (M) Sdn Bhd an extension to provide one workboat for a year until Oct 8, 2014.The extended contract is valued at about RM28.5 million and is expected to contribute positively to the revenue and earnings of PPB for the 2013 financial year (FY13) ending Dec 31 and FY14.

 

5) TNB

FYE 08/2013    Tover +3.6% RM37.13bn   Net +4.8% RM4.63bn  EPS 82.8sen

    Excl forex, in line with cons(f) RM4.18bn     

Demand growth for the year grew 3.8% in Pen Msia as full year net b4 forex RM4.12bn forex gain of RM602.7m. A major factor in profitability was the lower average coa pxl down to USD83.6/mt vs USD103.6/mt last year.

Net profits of RM4.12bn includes RM1.12bn fuel cost compensation. Fuel cost after netting off compensation fell 1.8% largely due to coal factor, less RM1.45bn.

Company announced a final div of 15sen taking full year payout to 25sen or 55% of free cashflow.

Major projects for capacity increase are on schedule with Janamanjung 1000MW coming online by Mar 2015. Strong price performance YTD of 36% is reflected in the highest foreign shareholding of 26.6% in the past few years.  

Despite the strong run up, valuation remains cheap relative to the other core blues. BOW

 

6) Market - A pull back to the 1800pts likely ahead of a holiday shortened week next week and renewed jitters over Fed tapering before Mar 2014.