Monday, May 26, 2014

Market Roundup | 21 May 2014

FBMKLCI   1877.03     -4.13pts    (-0.22%)     Volume  1.878b   Value 1.951b
 
 
 
1) The KLCI fell for a 2nd day running, touching a low of 1874.14 (-7.02pts) on continued profit taking of core blues which took negative lead from Wall Street overnight. In the regional market, bourses were mixed with the NIKKEI -0.28% closing lower after Japan's Central Bank delays its stimulus plans; HSI +0.01% closed flat while the SHCOMP +0.84% closed higher helped by coal stocks due to the government's plan to establish national markets for coal trading. In the local scene, profit taking was most evident in the Finance Index -0.34% weighed down by MAYBANK -0.70%, PBBANK-0.50%, and CIMB -0.27%. Market breadth was negative with losers beating gainers by 502:293. Futures closed at 1877.00 (parity).
 
 
 
2) Heavyweights : PETDAG -4.82% RM23.70, MAYBANK -0.70% RM9.90, PBBANK-0.5% RM19.76, TNB -0.65% RM12.20, SIME-0.4% RM9.65, YTL +4.12% RM1.77, PETGAS +0.58% RM24.18, GENTING +0.51% RM9.81.
 
 
 
3) DBT :  IDMENSN 52.16mil @ RM0.147 (15.08% PUC @ 18.3% discount), BIOOSMO 10.8mil @ RM0.165 (2.37% PUC @ 6.45% premium), KRETAM 6.5mil @ RM0.60
 
 
 
4) Situational:-
 
UZMA +1.19% RM5.97 - UZMA has proposed to acquire 100% equity shareholding of MMSVS Group Holdings Limited, a O&G player in Thailand involved in the provision of services in relation to the repair and maintenance of exploratory and production wells using hydraulic workover units (HWU). The purchase consideration of USD29.7m (RM95.34m) includes 7 modern HWUs and 1 Truck Mounted Service Rig that can work both onshore and offshore.
 
 
 
 
5) KLK
1H 03/14 Tover +19% RM5.43bn    Net +29% RM607.3m   EPS 57sen
                              In line with cons(f) RM1.21bn Plantations profit had increased by 17.7% to RM545.2 million which was largely attributed to the favourable selling prices of CPO and PK despite lower crop production of both FFB and rubber.  CPO prices achieved in the 1H RM2,392/mt +5.3%.
Manufacturing sector reported a sharp rise of 49.8% in its profit to RM217.7 million. Revenue was up 21.0% at RM2.763 billion due to higher sales volume and increase in selling prices which were in line with higher raw materials prices. The oleochemical division contributed a 44.8% increase in profit to RM210.8 million and the other manufacturing units brought in a profit of RM6.9 million. Strong performance of the oleochemical division was achieved through higher sales volume largely contributed by fatty acids and specialties products, favourable fatty alcohol business and improved contributions from the European operations.
Properties sector's profit fell 40.4% to RM21.6 million on the back of a much lower revenue of RM48.9 million as recognition of profits from the development project in Bandar Seri Coalfields, Sungai Buloh had declined.
On exceptional items, the Group had accounted for a gain of RM15.8 million which was derived from the excess of net assets over the acquisition cost (negative goodwill) of Liberian Palm Developments Ltd.
 
Fairly valued at 22x PE with limited FFB growth prospects in the near future.
 
6) Market - consolidation across the board is expected to continue with the KLCI ranging between 1855-1880pts levels