Wednesday, April 30, 2014

Market Roundup | 29 April 2014


FBMKLCI   1859.34      +3.60pts    (+0.19%)     Volume  2.500b   Value 2.202b
 
 
1) KLCI recovered from its day low of 1852.27 (-3.47points) to closed at day's high as index linked stocks were mostly positive. Regional markets ended mix with HSI+1.4% & SHCOMP+0.8% gaining on optimism China government could step in to bolster the economy after almost all Chinese provinces failed to meet their growth targets. ASX-1% led by banks and mining stocks. In the local scene, focus was firmly on the penny names which dominated the volume list and saw losses in VIS-42%, CSL-12.5%, and MPAY-15%. Overall market was firmly in the red with decliners thumping advancers 728:192. Futures closed at 1861 (1.5points premium).
 
 
2) Heavyweights : IHH+0.62% RM3.95, TENAGA+0.51% RM11.90, SKPETRO+1.17% RM4.33, SIME+0.54% RM9.33, MISC+1.59% RM6.40, PCHEM+0.74% RM6.80, GENTING+0.61% RM9.83, PPB+1.37% RM16.24
 
 
3) DBT : LIONDIV 30.829mil @ 0.18 (2.21% PUC), PDZ 29.8mil @ RM0.183 (3.43% PUC @ 22% premium), RPB 6mil @ RM0.43
 
 
4) Situational:-
 
SENDAI-1.78% RM1.10: Company announced it have contracts for structural steel projects worth an estimated RM172.2mil in the Middle East and India. Projects include structures for a complex on Dana Island in Doha, Lusail City Development in Doha, International Airport in Jeddah, Mosque in Abu Dhabi, and Sky bridge in Kolkata. These projects are expected to be completed by 1Q2015.
 
 
5) Globetronics  Q1 FY03/14 Rev+8% RM84.4m, Net+38% RM14.1m EPS 5.04s Div 11s
 
          Results in line, making up 22% of FY14 cons of RM63m
 
For the 3 months period, revenue was higher due to higher volume loadings from most of the group's customers, better economy of scale coupled with productivity improvement /cost control programs carried out in the group. The Malaysian and Singapore segments recorded healthy sales and net profit improvements. The Malaysian division made up 66% of revenue and 80% of PBT while the Singapore division constituted 30% of revenue and 17% of PBT. The group also recommended a final interim single tier ordinary dividend of 4% & a single tier special dividend of 4% per share in respect of FY12/2013, subject to approval;  Globetronics makes an excellent play on the fast growing smart-phone and tablet market. Its steady earnings delivery is also testament of management's execution skills and focus on high growth areas, Accumulate.
 
 
6) Market : to expect further consolidation as selling pressure still prevalent on second liners. Index to remain range bound.