Market Roundup | 3 December 2013

FBMKLCI   1824.29    +6.14pts   (+0.34%)   Volume  1.241b   Value 2.102b

 

 1)The KLCI gained today after TENAGA rose 8.4% which contributed 9pts to the index as regionals were weaker on fears US could pare its stimulus after US manufacturing data unexpectedly rose in November (57.3 vs 5.51 cons). In the regional market, bourses were mixed negative today as HSI -0.53% fell after touching its 31 month high on profit taking while the SHCOMP +0.69% rose to 6 weeks high as concern of a cash squeeze eased. In the local market, Property+0.6% outperformed with gains seen in SPSETIA+5%, Sunway+3% and E&O+1.5%. Market breadth was negative with losers leading gainers by 482 : 300. Futures closed 1815 (9pts discount).

  

2) Heavyweights: PETGAS -3.05% RM23.48, GENM -2.56% RM4.18, GENTING -1.35% RM10.20, SKPETRO -1.12% RM4.40, YTL -1.82% RM1.61, TENAGA +9.39% RM10.72, FGV +4.79% RM4.59, CIMB +0.92% RM7.62

  

3) DBT: MEXTER 20mil @ RM0.11 (11.179% PUC @ 15.7% premium), CWORKS 4.5mil @ RM0.94 (2.63% PUC @ 18.6% discount), MATRIX 4.1mil @ RM3.1993.

  

4) Situational:-

 

GBGAQRS 0.00 RM1.21 - Integrated engineering and construction services provider Gabungan AQRS Bhd has bagged a RM173m contract to build an apartment project, Tropicana Metropark, in Subang Jaya. Gabungan AQRS' wholly-owned subsidiary, Gabungan Strategik Sdn Bhd, received the letter of award from GDP Architects Sdn Bhd, the architect for the project, to construct two towers of 28-storey serviced apartments complete with infrastructure and amenities. In a statement yesterday, Gabungan AQRS CEO Ng Chun Kooi said the company intended to start construction immediately, with completion slated for the second quarter of 2016.

 

 

 

5) GLOMAC

 

1H 10/2013        Tover +11.5% RM318.1m    Net +41% RM63.3m    EPS 8.8sen

 

                                                3% below cons(f) RM130m

 

 

 

The Group recorded higher revenue and profit before tax as compared to previous corresponding quarter with continued contribution by projects in Puchong Lakeside Residences, Glomac Rawang, Glomac Centro and Cyberjaya 2.

 

The increase in net earnings is mainly due to higher share of profit from gain on disposal of investment properties recorded at the associated company totalling RM16.5m.

 

 

 

Hold as despite the current detachment from the property sector by the investment community, Glomac trades as single digit PE earnings with a decent yield of 5%.

 

 

 

6) Market - After today's jump on TNB's rerating, upside for the KLCI will be limited with reporting season on earnings so far generally disappointing.