FBMKLCI
1845.37 -8.51pts (-0.46%) Volume
2.401b Value 2.254b
1) The KLCI trended lower today closing 8pts below parity
despite the stronger US overnight that recorded its 2nd consecutive gain as
tech stocks rebound. In the regional market, bourses were stronger led by the
NIKKEI which gained +3.01% and HSI +0.11% and SHCOMP +0.17% also closed higher after China GDP came in
better than expected (7.4% vs consensus of 7.3%) although it was lower YOY. In
the local market, while bluechips continue to drag the index down; penny stocks
stole the spotlight as SONA +8.73%, SALCON +5.06%, MKLAND +8.88%, KNM +2.84%
all saw a spike in volume. Market breadth was positive as gainers beat losers
by 442 : 374. Futures closed at 1844.5 (1 pt discount).
2) Heavyweights : CIMB -0.67% RM7.35, PPB -2.30% RM16.14,
TM -1.65% RM5.94, IOICORP -1.03% RM4.77, GENM -1.40% RM4.20, MAYBANK -0.40%
RM9.75, SKPETRO -1.15% RM4.27, GENTING -0.73% RM9.52.
3) DBT : CAP 21mil @ RM0.35 (10% PUC), MTRONIC 7.5mil @
RM0.105 (1.08% PUC), RPB 5.237mil @ RM0.42, TITIJYA 2mil @ RM2.10, CRESBLD 1mil
@ RM1.53
4) Situational:-
TIMECOM +5.44% RM4.65 - TIMECom Bhd has joined a
consortium to build a new submarine cable system that will link Asia and Europe
via the Middle East, named Asia-Africa-Europe-1 (AAE-1). Together with 16
international service providers, TIME will construct and maintain the 25,000km
submarine cable system with landing stations planned for Hong Kong, Vietnam,
Cambodia, Malaysia, Thailand, Myanmar, India, Pakistan, Oman, UAE, Qatar,
Yemen, Djibouti, Saudi Arabia, Egypt, Greece and France. Construction is
expected to begin in the second quarter of 2014 and TIME's gross investment of
US$44 million (which includes the Malaysian cable landing station) will see it
securing 1.88Tbps of capacity in AAE-1 upon completion in 2016.
5) ZHULIIAN : 3 months FY02/14 Rev-40% RM66/1m Net-42% RM17.2m EPS 3.73 Div
3
Result makes
up only 12% of FY cons RM141m
Yoy, the lower revenue was mainly due to a fall in both
local & overseas market demand. PBT which stood at RM20.4m was 42% lower,
in line with the drop in revenue. Qoq, revenue was 15% lower, mainly due to
decrease in market demand from Thailand, offset by higher revenue from the
Indonesian market. PBT was however 9% higher, contributed by lower expenses and
increase in share of profit of equity accounted investee. Ahead, group remains
cautiously optimistic as currently consumer sentiment on spending has been
increasing and expects this to translate into stronger demand in local &
overseas market. Although the political uncertainty in Thailand continues to be
a concern, group plans to boost the productivity of distributors by
intensifying marketing programmes and promotional campaigns, with several
products to be launched in the current year. The prolonged political crisis in
Thailand could continue to be a drag on Zhulian's earnings; Avoid until
Thailand political crisis has abated.
6) Market : Market: The current 2-tiered market is likely
to continue with interest focusing on situational lower liners while the blues
languishing in sideways trade.