FBMKLCI
1792.39 +2.52pts (+0.14%)
Volume 1.510b Value 1.883b
1) The KLCI continued to creep higher for the 3rd
straight day after the US closed at record high. In the region, China stocks
jumped the most since 2011 after the government pledge to ease the one-child
policy and boost private investment as part of the biggest package of economic
reforms. SHCOMP gained +2.87% followed by HSI which also rose +2.73%. In the
local market, PLANTATION index +1.02% rose the most among the CI, boosted by
KLK +1.71%, GENP +3.90%, TDM +11.23% as investors anticipate a surge in CPO
prices to a est of RM2700-RM2800 in the near term on the back of rising demands
and lower production cycle trimming supplies. Market breadth was negative with
losers beating gainers 439 : 349. Futures closed 1795 (3 pts premium).
2) Heavyweights: GENTING +1.34% RM10.54, MAYBANK +0.61%
RM9.83, KLK +1.71% RM23.70, CIMB +0.54% RM7.42, SIME +0.63% RM9.57, AXIATA
-0.73% RM6.77, TM -1.16% RM5.10, FGV -1.60% RM4.30
3) DBT : DSCSOL 5.7mil @ RM0.25 (4.98% PUC @ 42.8%
premium), TIGER 5mil @ RM1.25mil, HELP 3.557mil @ RM1.75 (2.50% PUC @ 11.2%
discount).
4) Situational:-
BJAUTO +160% RM1.82 - Berjaya Auto Bhd made a solid start
on its listing debut on Bursa opening at RM1.57 and closing at RM1.82 with
72mil traded in the market. The IPO raised RM58mil from an offer for sale of
82.76 million shares. Most of the proceeds will be used for working capital.
Berjaya Corp Bhd remains Berjaya Auto's single largest shareholder post-listing
with a 68% interest, followed by Yeoh with 7.1%.
5) MAS
9mths 9/2013 Tover
+13.4% RM11.22bn Net (RM830.2m) EPS (6.67sen)
Cons(f)
(RM505m)
The company's strategy to gain market share at the
expense of yield continued to reflect in its quarterly numbers as Group's
operating revenue improved by 13.4% YOY. 3Q passenger yield continued to be
under pressure as competition for market share intensified regionally and
globally.
In the 3Q Group operating expenditure was higher by 16%
compared to the same quarter last year. This is principally due to higher fuel
and non-fuel variable cost which rose in line with capacity increase and
weakening of MYR against USD. Both fuel and non-fuel cost for airline increased
by 16%. The increase in operating expenditure is also attributed to one off
cost incurred for redelivery of aircraft. In addition, the Group intensified
its advertising and promotional activities amid intense competition as part of
its long term strategy to continuously strengthen presence in key markets.
Although efficiency will continue to be improved with the
arrival of new aircraft, competition is expected to intensify with more
airlines looking to offer a LC model.
Prefer MAHB for exposure to Malaysian VMH 2014.
6) Market - With improving sentiments in developed
markets and tapering off in foreign selling domestically, we expect the KLCI to
reclaim the 1800pts levels in the short term ahead of the traditional year end
rally.
