FBMKLCI
1812.72 +5.12pts (+0.28%)
Volume 1.195b Value 1.521b
1)The KLCI traded with tepid volume over the day before
closing at its day high during auction time as the US market took a day off
yesterday for Thanksgiving. In the regional market, HSI +0.39% extended its
rally after touching a 2.5 year high on optimism for China's biggest package of
policy changes since the last reform. SHCOMP +0.05% closed just slightly above
parity while the NIKKEI -0.41% slipped. In the local market, key index
heavyweights such as PETDAG +2.49%, IOICORP +1.25%, MAYBANK +1.03%, PPB +0.95%
all closed higher at auction behind the month end window dressing. Market
breadth was negative throughout the session with losers beating gainers by 402
: 347. Futures closed 1811.5 (1pt discount).
2) Heavyweights:
MAYBANK +1.03% RM9.78, PCHEM +1.81% RM6.75, IOICORP +1.25% RM5.64,
PETDAG +2.49% RM31.20, PETGAS +1.10% RM23.86, GENTING -1.35% RM10.22, TENAGA
-0.50% RM9.86, HLBANK -1.67% RM14.12.
3) DBT: TROP 24.143mil @ RM1.36 (2.27% PUC), LIONDIV
17.4mil @ RM0.21 (2.36% PUC @ 2.4% premium), MAYBANK 8mil @ RM9.76.
4) Situational:-
PESTECH -0.72% RM2.75 - Pestech International has secured
a contract worth US$16.6m (RM53.6m) to develop an integrated power distribution
system, including a substation, for the smelter facility at Samalaju Industrial
Park, Sarawak. Pestech signed the contract with Metix Malaysia Sdn Bhd for the
design, engineering, procurement, construction, testing and commissioning of a
132/33/11 kV integrated power distribution system for Sakura Ferroalloys Sdn
Bhd. Sakura Ferroalloys is a joint venture between Assmang Ltd, Sumitomo Corp
and China Steel Corp.
MRCB-3.54% RM 1.36/ DRBHCOM+6.58% RM2.59/ ARMADA-1.24% RM
RM3.97/ CARING+12.42% RM1.81/ SPSETIA-3.39% RM2.85 - The updated list of
syariah-compliant securities approved by the Securities Commission's (SC)
Shariah Advisory Council (SAC) was released today and which saw the number cut
to 71% or 653 of 914 companies listed on the stock exchange. The updated list
includes 16 newly classified syariah-compliant securities and excludes 158 from
the previous list issued in May 2013.
5) MUHIBAH : 9 mths 09/13
Rev-22% RM1.27b Net+15%
RM60.6m EPS 14.82s
Results
trails, making up 68% of FY13 cons of RM89.4m
For 9 months y-o-y, the lower revenue was mainly due to
delivery of major construction projects in the previous year. Nevertheless, the
group reported similar PAT of RM77.5m for the period under review. There is an
increase in the net profit attributable to owners, mainly because the company
had increased its equity interest in Favelle Favco Bhd ( FFB) from 55.6% to
61.3% in the 4th quarter of 2012, whereby FFB had issued new ordinary shares in
exchange for a factory in Sydney. PBT breakdown - Cranes (36%), Infrastructure
construction ( 19%), marine ship repair (24%) & concession ( 21%). Q-o-q, revenue +17%, PAT
+12% , mainly contributed by the cranes, shipyard & concession divisions.
Total outstanding OB secured as at Nov 2013 stands at RM2.13b, with orders up
to year 2016, comprising RM1b ( Infrastructure construction div), RM1.04 (
cranes div) and RM87m ( shipyard div). Prospect for the group is helped by the
award from Petronas of the " Offshore facilities const-Major onshore
fabrication" license in June 2013, as it had received invitation to
participate in upcoming O&G projects. We continue to like Muhibah due to
its unique business model that offers flexibility in construction of
infrastructure, marine-related and O&G jobs, it's leverage on
internationally recognized Favelle Favco's name, and it's long-term visibility
backed by stable and growing recurring income from its concessions; Trading at
10.5x & 9.4x for FY12/13 & 14, Accumulate.
6) Market: The market will continue to be mixed with the
broad market generally lethargic in thin trading volume while the KLCI index
remains well supported.