Friday, February 14, 2014

Market Roundup | 13 February 2014


FBMKLCI   1817.15pts    -8.49pts   (-0.47%)   Volume  2.517b   Value 2.082b
 
 
 
1) The KLCI broke its 6 day winning streak after the US market closed on a weaker note overnight amid a few weaker earnings. In the regional market, bourses were inline with the US as it corrected downwards after the strong rally over the past week, HSI fell -0.54%, SHCOMP -0.55%, NIKKEI -1.79% all closed in negative territory. In the local market, profit taking was seen across the board especially after the index rose +2.8% in the past 6 trading days. Some of the prominent names that saw heavy profit taking were CIMB -1.39%, SILKHLD -3.54%, UMWOG -2.90%, KLK -2.89%, DIGI-1.94%. Market breadth was negative with losers outpacing losers today by 483 : 318. Futures closed at 1805.5 (12pts discount)
 
 
 
2) Heavyweights: CIMB -1.39% RM7.09, KLK -2.89% RM23.52, DIGI -1.94% RM5.05, SIME -0.99% RM8.99, GENTING -1.17% RM10.06, PPB -2.02% RM15.50, GENM -1.38% RM4.28, MISC +4.83% RM6.50.
 
 
 
3) DBT: WINSUN 7.5mil @ RM0.095 (2.27% PUC), CHHB 5mil @ 1.50 (1.81% PUC @ 8.6% discount), LBS 3mil @ RM1.52, EKOVEST 2.188mil @ RM2.75, CBIP 2mil @ RM3.46, PERDANA 3.2mil @ RM1.7012 (11.4% discount).
 
 
 
4) Situational:-
 
SCOMIES -2.22% RM0.88 - Scomi Energy Services has secured an RM195m contract from PTTEP Siam Ltd and PTTEP International Ltd to provide drilling fluids services for an onshore drilling campaign in Thailand. The contract spans three years. Scomi Energy has clinched contracts worth more than RM360m so far this year. Last month, the group secured contracts in Myanmar and Indonesia worth RM90m and RM75m respectively.
 
 
 
5) MISC
 
FYE Dec 2013   Tover -1% RM8.97bn   Net +127% RM2.08bn   EPS 46.7sen
 
                        Cons(f)  RM1.33bn
 
 
 
The decline in group revenue was due to lower revenue in Heavy Engineering gas projects in hand nearing completion. Additionally Petroleum business recorded lower revenue from operating a smaller fleet and could lay up a few vessels. However this was offset by hire charter rates for LNG vessels and improved offshore biz from the full recognition of its two FSU commissioned. This improvement led top higher op profits of RM1.55bn +2.3%. The PBT jump is skewed by the share of profits from its joint ventures especially Gumusut Kakap SemiFloating Production Ltd due to a one off gain from the disposal through finance lease.
 
 
 
+ve overall Shipping biz continues to see a recovery. Trading interest likely to continue with expectations of a restructuring of the Group to streamline non core assets. HOLD
 
 
 
6) Market - Profit taking to continue with the KLCI expected to trade range bound btw 1800-1830pts with interest still firmly on mid caps.