Wednesday, February 26, 2014

Market Roundup | 25 February 2014


FBMKLCI   1833.75pts    +5.07pts   (+0.28%)   Volume  2.829b   Value 2.026b
 
 
1) The KLCI rose steadily thruout the day after the US market closed in positive territory overnight. In the regional market, bourses were mixed with SHCOMP -2.46% retracing for a 2nd day amid speculation of a weaker property market and falling yuan will affect corporate earnings; HSI -0.32% closed lower while the NIKKEI +1.88% reached its 4 weeks high. In the local scene, stocks in the ACE market index lost the most grounds today as healthy profit taking weighed these counters down, namely IRIS -7.31%, INARI -2.67%, NEXGRAM -6.89%, while the KLCI bluechip closed strong towards the end of the session pushing index to close at day's high. Market breadth was negative with losers beating gainers by 547 : 294. Futures closed at 1835 (1.5pts premium).
 
 
2) Heavyweights: IOICORP +2.60% RM4.73, SIME +1.43% RM9.22, DIGI +1.17% RM5.15, PETGAS +0.86% RM23.40, AXIATA +0.45% RM6.56, KLK -2.04% RM23.90, IOIPROP -2.26% RM2.59, MAYBANK -0.20% RM9.72, PETDAG  -0.85% RM30.30
 
 
3) DBT: TROPICANA 23mil @ RM1.42 (2.035% PUC @3.6% premium), UTOPIA 10mil @ RM0.10 (1.112% PUC @ 25% premium), GHLSYS 9mil @ RM0.618 (4.85% PUC @ 16%discount), MAGNUM 7.342mil @ RM3.00.
 
 
4) Situational:-
 
GASMSIA +1.69% RM3.61 - Group is diversifying from its gas distribution business into energy service, announcing yesterday that it intends to provide electricity and steam to Malaysian industries under a joint-venture (JV) agreement with Tokyo Gas Co Ltd. Gas Malaysia said it has inked a conditional agreement yesterday with Tokyo Gas parent, Energy Advanced Co Ltd (ENAC), to produce steam and electricity through a combined heat and power system. The JV company to be established in March will have a capital of RM4 million, with 66% to be held by Gas Malaysia and 34% by ENAC.
 
 
5) PERDANA : FY12/13  Rev+6% RM274.7m  Net RM61.7m ( loss RM3.4m LY )  EPS 8.65s
 
              Results 18% ahead of cons RM52.4m
 
For the 12 months, the higher revenue & PAT achieved was mainly attributable to the increase in the number of vessels in use, improvement in the vessel utilization and charter rates in the current quarter. The average utilization has improved from 77% LY to 80% this year. The net loss LY included an impairment loss of RM27.7m in Q4 2012. Cost savings from maintaining the old vessels in the current year also was a contributing factor. Qoq, revenue+14.5% due to the commencement of a few long term contracts coupled with the charter income generated from the new deliveries. PBT+34%, due to the increase in the number of vessels in use and vessel utilization, set off by the higher administrative expenses and finance costs in the current quarter. Ahead, management is optimistic on the prospect for O&G support services in the domestic & regional markets, on the back of stable oil prices, upsurge in offshore activities, ongoing tenders and various development programs spearheaded by Petronas. Co's focus will be to strive for longer term charters for it's new build assets. The strong Q4 results, higher utilization & it's fleet expansion plan, improving Balance Sheet & inexpensive valuation should intensify interest in the stock; Accumulate.
 
 
6) Market : profit taking in recent out performers to continue with rotational plays in mid caps. KLCI to remain range bound around current levels.