FBMKLCI
1881.16 -5.91pts (-0.31%)
Volume 2.036b Value 2.043b
1) The KLCI corrected downwards today after peaking at
1888pts high as several bluechip heavyweight dragged the index down. In the
regional market, bourses were better after the US rebounded overnight as small
cap and tech names gained for a 2nd day, leading NIKKEI +0.49%, HSI +0.57%,
SHCOMP +0.17% into the positive territory today. In the local scene, the broad
market faced profit taking today, similar to the CI, after it reached record
territories. SPACs was in the spotlight with gains seen in SONA +5.17%, and
CLIQ +4.44%. Market breadth was negative with losers beating gainers by 471 :
320. Futures closed at 1877.5 (3pts discount).
2) Heavyweights : PETDAG -5.32% RM 24.90, DIGI -1.29%
RM5.35, AXIATA -0.71% RM6.95, TM -1.21% RM6.50, SKPETRO -0.93% RM4.24, ASTRO
-2.59% RM3.38, KLK -0.88% RM24.70, TENAGA +0.65% RM12.28.
3) DBT : BJAUTO
115mil @ RM2.00 (14.25% PUC @ 6.5% discount), GREENYB 10mil @ RM0.25 ( 3.0% PUC
@ 1.96% discount), CAP 10mil @ RM0.25 (21.9% discount)
4) Situational:-
FABER -0.31% RM3.15 - Faber has been awarded a 27-year
contract worth RM1.03bil by Konsortium ProHAWK Sdn Bhd to provide asset
management services for the facilities and infrastructure of a women and
children's hospital in Kuala Lumpur. Contract starts once the hospital is
completed in 2016.
5) MBMR: Q1 03/14 Rev -17% RM508.2m Net-29% RM23.4m EPS
5.99s
Results
trail, making up only 15% of FY cons RM153m
For Q1 YoY, the overall lower performance was mainly
attributable to lower vehicle sales and start-up losses from new investments in
manufacturing facilities. However, the manufacturing division recorded higher
deliveries on the back of higher production volumes from major car makers.
Segmental, revenue from Motor Trading -21%
as sales was affected by intense market competition. Revenue from Auto
Part Manufacturing +9%, attributable to the increased demand from major car
makers. Associate results were lower as the new manufacturing facilities
incurred start up costs during the quarter. QoQ, revenue +1.4% due to better
vehicle sales in the continental makes. However, Operating profit -42% while
associates profits +2%. Ahead, the trading environment is expected to remain
challenging as customers are cautious in their spending in view of the rising
costs of living. HP financing has become more stringent and at the same time,
financial institutions have increased interest rates from April 1 2014, which
is presently affecting demand.
We reckon that the company is in a transitional phase of
charting its longer-term future. While we have confidence in MBM's management
ability, the current operational environment remains a challenge. We believe consumers will be more price
sensitive and thus preference may gravitate towards lower priced cars. That
said, while we are expecting a tougher business environment for its continental
makes, the group's dealership and strategic investment in associate Perodua and
customers' higher preference for cheaper cars could buffer the impact.
6) Barring external factors, cautious range bound trading
expected to continue into the week, with sporadic rotational plays.