FBMKLCI
1827.48pts +8.11pts (+0.45%)
Volume 3.632b Value 2.577b
1) The KLCI rallied today after the US market closed
stronger before the weekend. Investors will now look ahead to the release of
the Fed's minutes on Wednesday. In the regional market, optimism from the West
immediately translated into gains as NIKKEI
+0.56%, SHCOMP +0.92%, HSI +1.07% all gained. In the local market, Small
cap index outperformed the index once again led by SCOMIES +9.54%, DSONIC
+8.93%, SCOMI +13.92% as the CI saw a surge in volume today. Market breadth was
positive with gainers beating losers by 573 : 319. Futures closed at 1827
(parity)
2) Heavyweights: TENAGA +1.50% RM12.18, GENTING +1.77%
RM10.34, KLK +1.61% RM23.88, IOICORP +1.16% RM4.36, PBBANK +0.31% RM19.18, PPB
+1.80% RM15.80, IHH +1.06% RM3.80, MAYBANK -0.40% RM9.75
3) DBT: EAH 14.643mil @ RM0.19 (3.44% PUC @ 5% discount),
SUNWAY 5mil @ RM2.75, ARMADA 4.431mil @ RM4.011, HOHUP 1mil @ RM1.25 (10.1%
discount).
4) Situational:-
PERWAJA +28.00% RM0.32 - Perwaja Holdings Bhd has secured
a favourable settlement with Petronas with a repayment period of up to 43
months. The steelmaker announced that its wholly-owned subsidiary, Perwaja
Steel Sdn Bhd, has reached an amicable settlement with Petronas for the full
and final settlement of an outstanding amount of MYR275.8m and provision for
the future supply of dry gas.
5) AMMB : 9 mths 12/13 Rev+13% RM7.215b Net +9% RM1.329b
EPS 44.23s Din 7.2s
Results in line with cons RM1.803b
Yoy, earnings grew by 9%, supported by good income growth
and acquisitions. PAT from Retail Banking +15%, partly benefiting from
integration of MBF Cards and better asset quality. PAT from Business Banking
was also 4% higher underpinned by higher net interest income in line with
stronger loans growth and lower
provisions. Corporate & Institutional Banking showed sustained loan growth,
recording a PAT of RM277m, in the absence of last years non recurring private
equity divestment gains. Qoq, the group reported a higher PBT +3.5%,
contributed by lower expenses reported from other operating expenses and lower
impairments on sundry receivables.
We are encouraged that AMMB has stayed disciplined and
focused on executing its strategies. However, the stock lacks catalysts in the
near term. Concerns remain in the form of its below-industry loan growth,
margin contractions and an expected upturn in FY15 credit costs.
6) Market : With the KLCI index continuing its technical
bounce towards its resistance of 1835-39 pts level, the backdrop continued to
be conducive for situational rotation plays.
