FBMKLCI
1866.72 +3.88pts (+0.21%)
Volume 1.589b Value 1.798b
1)The KLCI opened lower in the morning touching a low of
1859.01 (-3.83pts) before recovering to close +3.88pts boosted by gains among
TELCO heavyweights namely AXIATA +1.17%, MAXIS +1.32%, TM +1.80%. In the
regional market, bourses were mixed as the NIKKEI +0.25% and HSI +0.12% managed to close just
slightly above parity while SHCOMP fell just after China's inflation data
missed estimates raising concerns over the growth of the economy. In the local
market, trades were choppy but saw pick up in selected penny stocks such as
SILKHLD +16.66%, DIGISTA +7.27%, ENCORP +5.22% all gained. Market breadth
turned positive towards the close as gainers led losers by 439 : 339. Futures
closed at 1861.5 (+5pts discount).
2) Heavyweights : AXIATA +1.17% RM6.88, MAXIS +1.32%
RM6.89, TM +1.80% RM6.19, PETGAS +2.87% RM23.66, IHH +1.26% RM4.01,
MAYBANK+0.30% RM9.84, TENAGA +0.33% RM12.00, GENTING -0.71% RM9.75.
3) DBT : DESTINI 81.5mil @ RM0.35 (11.28% PUC @ 45.8%
discount), YLI 29.568mil @ RM1.10 (30.00% PUC), MAS 13.095mil @ RM0.21, AMBANK
10.468m @ RM7.1630
4) Situational:-
PERISAI +4.48% RM1.63 - Perisai Petroleum Teknologi Bhd's
51% subsidiary Perisai Offshore Sdn Bhd has LOA from Petronas Carigali for the
provision of a newbuild jackup Perisai Pacific 101 (400' ILC) for a period of
three years. Works required under the terms of the LOA would be done by Perisai
Drilling Sdn Bhd and managed by Hercules Offshore, Inc. Actual operations will
commence in mid 2014 in support of Petronas Carigali’s drilling campaign. The
Perisai Pacific 101 jackup is now being built by PPL Shipyard Pte Ltd in
Singapore. The jackup, which is equipped to drill high pressure and high
temperature wells as deep as 30,000 feet, can operate in water depths of up to
400 feet and has accommodation for 150 persons.
5) GAB
9mths 03/14 Revenue -5.2% RM1,197.7m
Net-17.8% RM151.27m Eps 50.07sen
5.3% below consensus (f) RM213.1m
Ytd, revenue decline was due to the earlier timing of
Chinese New Year in FY2014. The decline in profit is due to market softness, as
consumers have reduced their spending due to inflationary pressure. The hikes
in electricity tariffs and fuel costs have also impacted private consumption.
Sales was also affected by poor weather conditions and the drop in tourist
numbers. QoQ, Group revenue was down by 25.4% to RM126.8 million and PBIT
decreased by 44.8% to RM49.7 million.
Going forward, company expects the domestic beer business
environment to remain challenging and competitive. Consumers are also scaling
back on discretionary spending due to shrinking disposable income as a result
of Government’s rationalisation of subsidies on petrol, sugar and electricity.
Unfair competition from an increasing amount of contraband beers continues to
depress the legitimate domestic beer market. The implementation of goods and
services tax (GST) in 2015 may further impact consumer spending behavior. the
company will implement better cost discipline and cost optimization exercise
Hold as hike in prices by 3-5% in Mar is expected to
offset the rising cost while upcoming world cup and introduction of new brands
is likely to boost its sales. Dividend yield is reasonable at 5%.
6) Mkt: Expect further consolidation in a holiday shorten
week with support at 1850 level. Stocks at buy levels Maybulk, Yinson (ex-right
14/5), Titijaya, Perdana
