FBMKLCI
1875.12 -1.91pts (-0.10%)
Volume 1.800b Value 2.229b
1) The KLCI ended the session marginally lower headed for
its 3rd straight fall since Monday's record high of 1889.47 in absence of
supportive buying interest. In the regional market, bourses were mostly higher
led by the NIKKEI +2.11%, ASX +1.02% and HSI +0.51% after the HSBC China PMI
hit a 5 month high of 49.7 in May and the SHCOMP -0.18% was marginally lower as
a sell-off in coal stocks outweighed earlier gains. In the local scene, profit
taking evident in the Technology Index with ETITECH -12.5%, JCY -2.67%, and
GPACKET -1.28% amongst the most actively traded. Market breath was negative
with loser beating gainers by 402:390. Futures closed at 1874 (1point discount)
2) Heavyweights : TM -1.26% RM6.25, YTL -3.39% RM1.71, SKPETRO
-1.41% RM4.19, IOICORP -0.954% RM5.19, PPB -1.85% RM15.96, PBBANK +0.61%
RM19.88, IHH +2.65% RM4.26, MAYBANK +0.51% RM9.95.
3) DBT : AAX
123.7mil @ RM0.73 (5.22% PUC @ 5.2% discount), YILAI 49.66mil @ RM1.30 (31.04%
PUC @ 4% premium), YINSON-OR 20.69mil @ RM2.70, YTLPOWR 15mil @ RM1.55
4) Situational:-
PERDANA +2.83% RM1.82 - Perdana Petroleum Bhd's
subsidiary Perdana Nautika Sdn Bhd has secured a RM30 million contract
extension to its original two year contract from Murphy Sabah/ Sarawak Oil Co
Ltd for the supply of an anchor handling tug supply vessel (AHTSV) effective
from June 27, 2014 for one year until June 26, 2015.
5) HSL : Q1 03/14 Rev-14% RM116m Net-16% RM16.4m EPS
2.97s
Results
trails, making up 16% of FY cons RM98m
Yoy,for the Construction segment, revenue-15% while PBT
-18%. These were due to lower progress claims of construction works due to
timing and nature of contracts during the quarter. In the Property Development
segment, revenue was +6% while PBT+10%, mainly attributable to higher sales of
new properties launched. Construction still made up the bulk of revenue &
PBT generated, accounting for 92% & 89% respectively. Qoq, revenue was -19%
while PBT-25%.
Ahead, Sarawak remains a vibrant state with domestic
economic growth forecast of 5% for 2014. We remain optimistic about HSL's
prospects over the next 2-3 years, given plenty of job opportunities within and
without Sarawak's SCORE. Positives include it's strong earnings visibility,
healthy balance sheet and group as a proxy to the strong growth in the state's
construction sector. However, the price run up over the past 2 months has
brought valuations to 11.6x -11x PE for FY14F-FY15F; HOLD.
6) Market: Cautious trading as markets await a slew of
key economic data globally with closer attention paid to growth after having
stalled in the first quarter from the cold winter.