FBMKLCI
1879.2 +13.12pts (+0.70%)
Volume 1.826b Value 2.473b
1) The KLCI surged today closing just 3 pts shy of the
all-time high boosted by buying interests in selected bluechips and plantation
heavyweights; namely IOICORP+2.6%, AXIATA +1.31%, TM +2.43% and MAYBANK
+0.71%. Regional bourses also trended
higher led by HSI+1.03% and STI+1.07% after China's central bank urged mainland
banks to speed up the granting of home loans. In the local scene, the broad
market was stronger overall with Plantation sector +1.35% outperforming the
rest as we see decisive gains in IOICORP +2.57%, KLK +1.96%, TSH +3.93% after
reports suggesting that CPO prices are set to rise in the coming months on the
back of the El Nino phenomenon that could curb output. Market breadth was
positive as gainers edged loser by 521:283. Futures closed at 1878.5 (1pt
discount).
2) Heavyweights : IOICORP +2.57% RM5.18, AXIATA +1.31%
RM6.96, TM +2.43% RM6.30, MAYBANK +0.71% RM9.92, YTL +3.03% RM1.70, KLK +1.96%
RM24.88, TENAGA +0.50% RM12.04, MISC +1.86% RM6.57.
3) DBT : XINGHE 19mil @ RM0.25, BENALEC 5mil @ RM1.00,
SEACERA 5mil @ RM0.95 (4.50% PUC @ 28.4% premium).
4) Situational:-
BJCORP +3.06% RM0.505 - BJCORP has beaten six rivals to
invest and undertake a computerised lottery system in Vietnam. The lottery
system would be undertaken under a business cooperation contract with Berjaya
Gia Thinh Investment Technology Co. Lt, a Vietnam Lottery Company. Berjaya GTI
is 51% owned by Berjaya Lottery Vietnam Ltd and it is in turn 80% owned by
BCorp and 20% by BToto.
5) CMS
3mths 03/14
Revenue -20.2% RM373.2m Net+35.5% RM38.89m Eps
11.46sen
19% of consensus (f) RM205m
Yoy, the 20% rise in revenue is mainly attributed to
construction materials & trading, Construction & Road Maintenance and
property development which rose 43%, 30.6% and 330% respectively.
Cement Division recorded a slight (3%) reduction in PBT
of RM20.44 million in 1Q14 mainly due to lower cement and clinker production
volume due to repair and maintenance and higher volume of imported cement to
meet market demand. Demand for its ready mix concrete was also lower due to the
completion of a major project.
Property Development Division's PBT grew by 4428% to
RM18.70 million in 1Q14 in comparison to a loss before tax of RM432,000 in
1Q13, mainly due to the recognition of profit from the sale of land in the
current quarter and profit from sale of properties.
The Samalaju Division registered a sharp 69% drop in PBT
(excluding the associates) to RM3.60 million for 1Q14 as compared to RM11.76
million in 1Q13, on the back of lower revenue as a result of lower occupancy
and rates.
Qoq, revenue and PBT for the 1Q14 were 14% and 39% lower
than for 4Q13. Cement Division's PBT slid slightly by 6% in 1Q14 due to lower
sales volume which was affected by the Chinese New Year, wet season and
government funding. Construction Materials & Trading Division's PBT in 1Q14
dropped by 27% as The Jabatan Kerja Raya's MARRIS program on maintenance of the
state and rural roads for 2014 has not been rolled out and implemented yet in
1Q14. Construction & Road Maintenance Division's PBT was 57% as 4Q13 were
exceptionally good with several instructed works for state roads being claimed.
Buy on weakness as CMS remains the main proxy to SCORE
developments. Its proposed 1-into-2 share split that will be followed by a
1-for-2 bonus issue is also expected to improve liquidity in the stock.
Mkt: barring external events, the KLCI index is likely to
top its all-time high of 1882pts and then consolidate its recent gains.
