FBMKLCI
1833.87 -8.95pts (-0.49%)
Volume 1.073b Value 1.637b
1) The KLCI slipped for a 2nd day after peaking at
1846pts a few days back following the weaker US market overnight which closed
lower on profit taking after selected companies reported weaker earnings.
Regional markets were also weighed down by negative sentiments from the west
which saw SHCOMP, HSI and NIKKEI all closing in negative territory as investors
retreated to the sidelines just before the FOMC meeting next Monday. In the
local market, volume was lower than usual while most of the bluechip stocks
continued to fall on profit taking, some of the highlights includes TENAGA
-2.65%, TM -2.18%, GENM -2.05%, MISC -2.36%. Market breadth was negative
thruout the sessions with losers outpacing gainers by 407 : 320. Futures closed
at 1832.5 (1pt discount)
2) Heavyweights: TENAGA -2.65% RM11.00, TM -2.18% RM5.38,
SIME -0.93% RM9.57, GENM -2.05% RM4.30, MAYBANK -0.59% RM10.02, PCHEM -1.01%
RM6.80, GENTING -0.89% RM9.99, DIGI +1.47% RM4.83
3) DBT: MMSV 7mil @ RM0.1521 (4.294% PUC @ 29.3%
discount). BRAHIMS 5mil @ RM1.5920 (2.217% PUC @ 7% discount), THPLANT 4.16mil
@ RM1.92.
4) Situational:-
COASTAL +4.83% RM3.45 - Coastal Contracts Bhd's
subsidiaries, Thaumas Marine Ltd and Coastal Marine Pte Ltd, have clinched
contracts for the sale of one subsea support maintenance vessel and two low-end
vessels totalling RM148m. Total value of the vessel sales order book stands at
about RM1.34bn.
5) SPSETIA : FY 10/13 Rev+21% RM3.06b Net+6% RM417.8m EPS 17.93s
Div 11s
Results trails, making up 94% of cons RM446.5m
For 12 months yoy, revenue was 21% higher but PBT was
just +0.5%. In the Property Development div, revenue +24% while PBT +1%. The
lower PBT increase was due to the change in product mix ( larger percentage of
profits now contributed by sale of high rise condominiums as compared to landed
properties LY), higher interest expense to partially fund the group's increased
portfolio of overseas investments and mismatch between initial expenses
incurred and income recognition due to the launch of several sizeable new
projects both locally & overseas ( including Eco Sanctuary in S'pore,
Battersea Power Station in UK & Praque Melbourne in Australia).
Contribution from Construction div remain small ( Rev 4% & PBT 1%). Qoq,
PBT +24%, due to the commencement of revenue recognition from projects such as
Setia Ecohill, Setia Ecoglades and 18 Woodsville & Eco Sanctuary in S'pore.
For FY2013, group achieved total sales of RM8.24b, which is almost double the
sales achieved LY of RM4.2b & 50% above it's FY2013 sales target of RM5.5b.
Sales from international projects stood at RM3.2b while Malaysian projects at
RM5b; While we still like the group for its strategic landbank, the imminent
departure of TS Liew and concerns over a possible exodus of talent may likely
cap share price performance ( this despite a succession plan being revealed
recently). Speculative catalyst remains as it was recently reported that SP
Setia's largest shareholder Permodalan Nasional Bhd is mulling over listing its
property development arm I&P or injecting I&P's assets (worth about
RM10b) into SP Setia - HOLD.
6) Market: Window dressing likely to continue absorbing
QE tapering fears liquidation resulting in index trading sideways.