Tuesday, April 1, 2014

Market Roundup | 28 March 2014


FBMKLCI   1850.73      +3.86pts    (+0.21%)     Volume  1.804b   Value 2.029b
 
1) The KLCI saw range bound trading in the negative territory after the US market closed lower overnight as investors weighed a batch of mixed economic data, the CI however, was catapulted into the green towards market close as window dressing activities boosted selected bluechip stocks, namely FGV +3.07%, KLK +2.97, GENTING +2.78%, IOICORP +0.62%, PETGAS +0.92%. In the regional markets, bourses were mostly positive as HSI +1.06% led the in gains just before the release of Chinese Manufacturing Data next week; NIKKEI +0.50%, HSCEI +1.30%, ASX +0.31; while SHCOMP fell -0.24%. PLANTATION +1.30%, was the outperforming sector today helped by gains in KLK,FGV, IOICORP. Market breadth was neutral, 381 : 380. Futures closed 1849 (1 pt discount).
 
2) Heavyweights: GENTING +2.78% RM9.97, KLK +2.97% RM24.92, FGV +3.07% RM4.70, PCHEM +1.18% RM6.81, AXIATA +0.60% RM6.66, TM -4.35% RM5.93, TENAGA -1.15% RM11.98, PBBANK -0.72% RM19.16.
 
3) DBT: MEGB 12mil @ RM0.40 (2.92% PUC @ 14% discount), CWORKS 10mil @ RM0.26 (9.09% PUC @ 8.8% discount), STAR 10mil @ RM2.40 (1.35% PUC), OCK 8.55mil @ RM1.06 (3.00% PUC @ 8.7% discount), TITIJYA 1.6mil @ RM1.8763.
 
4) Situational:-
GPACKET  -9.61% RM0.47/ TM -4.35% RM5.93 - announced that Telekom Malaysia Bhd (TM) will fork out RM350 million via the subscription of new shares for a 57% stake in Packet One Networks Sdn Bhd, paving the way for the latter into the wireless broadband field. TM will also invest up to RM210 million into Green Packet Bhd via newly issued redeemable exchangeable bonds, which may be exchangeable into Green Packet's stake in P1 in the future. As part of an investment agreement Green Packet and South Korea's SK Telecom Co. Ltd will remain as key strategic shareholders of P1. The pact will see the parties collaborate on developing next-generation Long Term Evolution infrastructure.
 
5)CRESCENDO: FY01/14 Rev+10% RM310.4m Net+118% RM121.2m EPS 57.2s Div 16s
              Core earnings in line with cons RM83.6m
 
For FY yoy, the increase in Revenue & PBT was mainly due to higher sales in industrial properties. The substantial increases in PBT were also contributed by the higher profit margin as a result of change in sales mix with higher contribution fron higher margin industry property sales and FV changes of investment properties amounting to RM39m. Segmental, Revenue from Property development & construction +15% while Operating profit +47%. Manufacturing & trading division's revenue -16% but PBT +130% ( due to general improvement in profit margin & higher sales for export market which carries better margins). Qoq, PBT -35%, mainly due to lower industrial property sales in this quarter and higher gain on FV changes of investment properties in the preceding quarter. We continue to like Crescendo as a small-mid cap proxy to the Johor play for its rich margins, industrial and affordable housing play.
 
 
6) Market : Ahead of the quarterly closing on Monday, advocate selling in strength on some recent out-performers should opportunity arise,  Digi, Astro, Misc.