FBMKLCI
1850.54 +5.17pts (+0.28%)
Volume 2.522b Value 2.113b
1) KLCI rose today after the US reported
stronger-than-expected factory output and federal Reserve indicated interest
rates may stay at record lows for awhile. Regionals were generally positive
with gains seen in ASX+0.6% and HSI+0.28%. Index was boosted by banking stocks
led by PBBANK, MAYBANK and CIMB while property index-0.23% after profit taking
was seen in IOIP-1.8%, E&O-5.5% and SUNWAY-1.3%. Market breadth was
marginally negative with decliners edging gainers by 409 : 406. Futures closed
at 1845 (5.5 pt discount).
2) Heavyweights : PBBANK+1.2% RM19.98, MAYBANK+0.82%
RM9.83, CIMB+0.68% RM7.40, PCHEM+0.89% RM6.83, GENTING+0.63% RM9.58, GENM+0.95%
RM4.24, IHH+1% RM3.96, DIGI-0.6% RM5.25
3) DBT : PFCE 18.18mil @ RM0.30 (19.13% PUC), CRESBUILD
3mil @ RM1.50 (1.86% PUC @ 3.8% discount), PANTECH 3mil @ RM1.00, SOLID 3mil @
RM0.85 (2% PUC)
4) Situational:-
SALCON-4.8% RM0.79 & AZRB+5.9% RM0.81: SALCON MMCB
AZSB JV SDN BHD, a jointly controlled entity of Salcon Engineering Berhad, a
wholly-owned subsidiary of Salcon (36%), MMC Corporation Berhad (34%) and Ahmad
Zaki Sdn Bhd (30%) has been awarded RM993.888mil contract to develop the Langat
2 water treatment plant as part of package 2A.
5) BURSA
1st Quarter Results: Revenue +12% RM123.1m Net +18% RM45.1m EPS 8.50sen
6.6% below cons(f) RM192.5m on annualised basis
Bursa’s operating revenue was up by 13 percent to RM115.1
million in 1Q2014 boosted by double digit growth in trades from the securities
and derivatives market. For the year under review, the securities market’s
average daily trading value (“ADV”) grew by 26 percent to RM2.16 billion as a
result of higher trading participation from retail investors due to its
targeted outreach activities and continued support from domestic institutions.
Derivatives market’s average daily contracts (“ADC”) grew by 11 percent to
50,046 contracts largely driven by the increase in the activities of the crude
palm oil futures (FCPO) contracts.
Despite an increase in the operating expenses of 10
percent due to higher investment in talent, the cost to income ratio was
optimised at below 50 percent.
Bursa registered a net profit of RM45.1 million, up by 18
percent for the first quarter compared to the same period last year on the back
of higher operating revenue. On an annualised basis, the return on equity
recorded an increase from 18 percent in 1Q2013 to 23 percent in 1Q2014.
Bursa 1Q2014 net profit was up 33 percent compared to the
preceding quarter ended 31 December 2013. Its operating revenue increased by 11
percent from RM103.9 million to RM115.1 million in 1Q2014. The ADV for
securities market’s on-market trades was up by 23 percent to RM2.1 billion
while ADC traded for the derivatives market increased 20 percent to 50,046
contracts.
Bursa has always traded above market PER since its
listing in view of its attractive dividend yield of more than 4% and its growth
outlook. It is currently trading at an annualised PER of 22.4x which is below
its historical 3-year PER of 24.1x. Accumulate on weakness.
6) Market: is likely to consolidate as trading activities
decline over the Good Friday & Easter weekend.
