FBMKLCI
1798.69 -8.47pts (-0.47%)
Volume 1.791b Value 2.311b
1) The KLCI erased yesterday gains after the US closed
flattish overnight and just before Bernanke's Speech scheduled for today. In
the regional market, major indices were mixed as the NIKKEI -0.33%, STI -0.25%
and ASX -0.85% lossed some grounds while the SHCOMP +0.62% rose to one month
high after the central bank of China elaborated plans to loosen its policy on
financial markets by freeing up foreign-exchange controls. In the local market,
profit taking continue to take a toll on the index chipping away 8.5pts after
UEMS-3.46%, KLK -2.99%, UMW -2.19% tops the list of the losers among the CI.
Market breath was negative with losers stomping gainers by 562 : 246. Futures
closed 1800.5 (2pts premium).
2) Heavyweights: GENTING +0.78% RM10.24, KLK -2.99%
RM24.00, MAYBANK -0.93% RM9.56, PCHEM -1.63% RM6.63, GENM 1.81% RM4.32, AXIATA
-0.59% RM6.73, IOICORP +1.06% 5.71, PETGAS +1.18% RM23.88
3) DBT : KSL 4mil @ RM1.99 (1.02% PUC), EDUSPEC 3.5mil @
RM0.16, TSH 3.25mil @ RM2.733 (3.5% discount).
4) Situational:-
KPJ +1.61% RM6.28 - KPJ Healthcare Bhd (KPJ) has entered
into a Deed of Agreement with Father of the Nation Bangabandhu Sheikh Mujibur
Rahman Memorial Trust to lease a 250-bed hospital building in Bangladesh. Known
as Sheikh Fazilatunnessa Mujib Memorial KPJ Specialist Hospital, the hospital
building is located about 50km from Dhaka and built by the Trust at a cost of
2.2b Bangladeshi taka (RM87.5m). KPJSB or its nominee company, KPJ Healthcare
(Bangladesh) Private Limited, a subsidiary of KPJSB in Bangladesh, will be the
licence operator (LO) of the hospital. The LO proposes to lease the hospital
building to run and operate the hospital for an initial period of ten years
which is extendable for another five years.
5) ARMADA
9mths 9/2013
Tover +29% RM1.52bn Net +24%
RM342.9m EPS 11.7sen
9% below cons(f)
RM497m
The higher turnover was a result of increase in activity
in its FPSO, OSV and T&I segments as follows:
However the EBITDA margin fell 9% to 51% YOY, reflects
the higher percentage of revenue contribution from the LukOil EPIC.
Profit increased by RM67.9 million in line with increase
in EBITDA and after accounting for the following higher depreciation of RM25.4
million mainly due to vessel additions in the FPSO, OSV and T&I
segments,lower finance costs of RM21.2 million as a result of project debt
repayment; and lower taxation costs of RM8.2 million mainly due to lower
deferred tax estimate.
Total order backlog of RM12.7 billion (comprising RM8.0
billion firm and RM4.7 billion optional) * Increased T&I revenue from
Lukoil project * Two new OSV vessels and improved uptime * Two significant
FPSO.
The recent letter of interim agreement received by the
company for the Kraken FPSO estimated to be valued above USD1bn has catapulted
Armada into the bigger FPSO league and could mean that the company may need to
raise further capital to maintain this ambition. A successful execution of this
plan could rerate the company to the around the 25x PE multiples for 2014, or a
medium term target of RM5.20. Accumulate.
6) Market - Consolidation expected around the 1800pts run
up as profit taking continue on recent penny stocks rally.
