FBMKLCI
1886.71 +1.84pts (+0.10%)
Volume 2.409b Value 2.631b
1) The KLCI rose in the morning topping at a +10pts high before erasing gains to close
just 1.8pts above parity. This was inline with the mixed US market after the US
Fed's comments on indicating that some of the sectors are currently trading at
excessive valuations. In the regional market, bourses were also mixed despite
China's economic growth accelerated 7.5% in 2Q vs consensus of 7.4%, SHCOMP
closed -0.15%, HSI +0.24% erased earlier gains but still closed in the green;
emerging markets such as SET +0.26%, and JCI + 0.85%, STI +0.34%. In the local
scene, market volume picked up significantly today as we saw a spike in volume
amongst selected bluechips namely CIMB-0.70%, TENAGA -0.32%, AXIATA +0.57%,
DIGI -1.40%. Market breadth was positive today as gainers outpace losers by 543
: 350. Futures closed at 1886.5 (parity).
2) Heavyweights : AXIATA +0.57% RM6.95, YTL +1.92%
RM1.59, MAXIS +0.89% RM6.76, HLFG +4.14% RM17.58, PETGAS +0.76%, DIGI -1.40%
RM5.63, CIMB -0.70% RM7.00, TENAGA -0.32% RM12.46.
3) DBT : PMHLDG 6.5mil @ RM0.11, SUNZEN 6.359mil @ 0.2609 (4.25% PUC @ 34.8% discount), GBH 5mil
@ RM2.15 (4.5 % discount), GTRONIC 2mil @ RM4.20, TITIJYA 1mil @ RM2.70 (3.3%
discount).
4) Situational:-
NOTION +10.16%
RM0.65 - News reported Notion VTec Bhd is close to clinching two to three deals
from Japanese and South Korean firms to manufacture smartphone components,
which could bring in RM40.0m to RM50.0m in annual revenue. The company said if
successful, the deals would start contributing to the group's bottom line from FY15.
5) TENAGA
3Q 5/2014 Tover
+12.5% RM31.1bn Net +15%
RM5.11bn EPS 90.1 sen
Based on
annualised normal profit of RM4.73bn, 6% below cons(f)RM5bn
Recorded lower translation gain of RM292.2m vs RM1.11bn
YOY. EBITA margins also eroded by 2.2% to 27.5% mainly due to higher LNG
consumption and cost. Net levels were however higher partly due to the negative
6.2% effective tax rate arising reinvestment allowance for year 2013 and
current year, mostly from non recurring items. A normalised profit before forex
and after tax recorded a deterioration of 1.4% to RM3.55bn YOY. 10mth
electricity growth was lower at 2.5% due to lower consumption by steel mills.
Foreign shareholding have stabilised at 25.37% in May
after falling from a high of 27.84% in Dec 2013.
A recovery in margins will be dependant on the
finalisation of the "Imbalance Costs Pass Through Mechanism", which
is suppose to aid the company in absorbing higher cost through an increase in
tariff rates. Stock price has had an impressive run this year on expectations
of an announcement to this effect. Hold.
6) Market - Consolidation in the KLCI to continue with
rotational plays in mid caps .
