FBMKLCI
1817.44 -3.26 (-0.18%)
Volume 1.552b Value 1.762b
1) The KLCI saw lacklustre trading today albeit the
stronger US market overnight after better housing data boosted confidence of
investors. In the regional markets, bourses were mixed with NIKKEI +0.36%
holding its gains while HSI -0.07% and SHCOMP -0.17% closed in negative
territory just before day 2 of the Fed's meeting tonight where investors await
Yellen's next move. In the local scene, ACE market index +0.81% outperformed
the CI after solid gains in INARI +7.20%, BOILERM +3.71%, OCK +7.61%. Market
breadth was positive with gainers beating losers by 402 : 358. Futures closed
at 1815.5 (2pts discount).
2) Heavyweights: PCHEM +0.90% RM6.72, CIMB +0.28% RM7.07,
IOICORP -1.68% RM4.66, GENM -2.08% RM 4.22, PETGAS -0.77% RM23.08, SKPETRO
-0.70% RM4.21, PETDAG -0.98% RM30.04, MAYBANK -0.20% RM9.57.
3) DBT: MQTECH 5mil @ RM0.15 (2.16% PUC @ 15.3 premium),
BHS 3.6mil @ RM1.38 (4.5% PUC @ 9.3% discount), KANGER 3.48mil @ RM0.3948
(11.3% discount).
4) Situational:-
OCK +7.61% RM1.13 - The Malaysian communications and
Multimedia Commission (MCMC) had on Monday invited parties which are keen to
the universal service providers to build telco towers in underserved areas to
register. OCK Group is seen as the frontrunner to win a fair share of the
project, which aims to build 1,000 telecom transmission towers in underserved
areas as announced in Budget 2014.
5) GLOMAC
9 Months Tover
+12.7% RM501.8m Net +22% RM86m EPS 11 sen
6% below cons(f) RM121.4m
The higher turnover was driven by Glomac's strategic
decision to focus on more resilient landed residential projects in the current
softer market environment. The Company achieved new sales of RM368 million in
the nine month period, sustaining high unbilled sales at RM792 million as at
the end of January 2014.
Glomac expects to launch new phases from its GDV RM2.6
billion Lakeside Residences in Puchong in the second half of 2014. Initial
phases comprising link houses with Gross Development Value of RM229 million are
almost all sold. Glomac is also targeting to launch Saujana KLIA, its new
exciting township with total GDV of RM1.2 billion in this calendar year.
These main projects should see the company continue to at
least deliver numbers in line with consensus forecast.
Future projects
have also been planned with the proposed acquisition of 62.6 acres in Bandar
Saujana Utama adding to its total GDV of RM7 billion on prime and strategic
landbank within Greater KL.
Trading at a PE of 6.8x, the company continues to show
resilience in the current difficult environment, we rate it a buy with an
upside target of RM1.30.
6) Market - Selling by foreign funds continue to weight
down the market but market breath remains positive on rotational mid/small cap
plays. Expect current trend to continue with KLCI support around the 1800pts
levels.
