FBMKLCI
1850.91 +13.02pts (+0.71%)
Volume 1.081b Value 1.544b
1) The KLCI rose today recording yet another all-time
high at 1851.9pts after the US ended higher on stronger manufacturing data that
showed signs of a better economy. Regional bourses were mixed today with the
SHCOMP -0.45% and HSI -0.20% rising in the earlier session but eased into
negative territory towards the close as investors awaits outcome from FOMC
which starts tonight. In the local market, the CONSTRUCTION index +1.34%
rebounded after lagging behind other sectors in this recent strong run of the
CI, among the outperformers were names such as GAMUDA +2.88%, IJM +2.06%, WCT
+1.40%, MRCB +0.80%. Market breadth was slightly positive with gainers inching
past losers by 388 : 362. Futures closed at 1842 (8 pts discount).
2) Heavyweights: AXIATA +1.77% RM6.87, PETGAS +1.75%
RM23.20, GENTING +1.38% RM10.24, BAT +2.28% RM64.58, PCHEM +1.03% RM6.83, DIGI
+1.02% RM4.92, MAXIS +0.98% RM7.20, PPB +1.96% RM15.60
3) DBT: SCOMNET 10mil @ RM0.135 (4.11% PUC), AIM 9.998mil
@ RM0.135 (3.758% PUC), EDUSPEC 9.8mil @ RM0.1385 (1.28% PUC @ 13.5% discount).
4) Situational:-
ARMADA +3.11% RM3.97 - Bumi Armada announced that Afren
Energy Resources has extended its contracts for the bareboat charter and the
operations & maintenance respectively of the FPSO Armada Perkasa for
another two years, with effect from July 2014.The extension contract has an
estimated value of RM221m. The original contracts were first awarded in 2007,
to take effect from 1 July 2008, for a fixed term of five years with five
one-year extension options thereafter. The initial optional extension of the
contract was extended in October 2012, for a one year period with effect from 1
July 2013
5) TOPGLOVE : Q109/13
Rev-2%, RM574m Net-13%
RM50.3m EPS 8.11s
Results
trails, making up 22% of cons RM228.7m
For Q1 yoy, lower revenue was mainly due to the lower
average selling price despite the increase in overall sale volume by 10%. The
volume growth was attributable to the continuous demand from developed &
emerging markets alike, which is expected to continue growing at a rate of 8-10%. PBT was 12% lower, mainly attributable
to the FV gain on foreign exchange contracts of RM15.2m that was recognized in
1QFY2012. Qoq, revenue +4.7%, due to a 3% increase in sales volume. However,
PBT -8% mainly due to the unfavorable contributions from the subsidiaries in
China arising from the challenging operating environment in the vinyl glove
segment; We remain +ve on the stock, view underpinned by its well-executed
volume strategy and move up the value chain to nitrile gloves. Co grew its FY13
nitrile sales volume by 65% in FY13 and is targeting a more balanced product
mix ( 50:50 ratio of latex:nitrile gloves from FY13's 80:20) in 3-5 years.The
rapid nitrile expansion will compensate for the margin erosion in the natural rubber
segment ( nitrile commands a much higher gross profit margin of 20-25% versus
natural rubber's 15-20% ).Going forward, growth is expected to be driven by
capacity expansion involving an additional 4.2b pieces of gloves, or by 9.6% in
June 2014 to a total of 48.1b, largely for nitrile gloves production - Hold.
6) Market : The FOMC meeting starting today will be
closely watch by market participants as to whether the Fed will guide on the
timeline for the QE tapering to commence. However, the effect on the Malaysian
market is likely to be minimal in the immediate term.