FBMKLCI
1877.05pts +5.22pts (+0.28%)
Volume 2.029b Value 1.993b
1) The KLCI closed
slightly higher today boosted by selected bluechips namely TENAGA, DIGI,
IOICORP during auction time despite the mixed US market which stalled after
S&P index reached toppish valuations of 15.7x. In the regional market,
bourses were slightly stronger led by SHCOMP +1.28% after China HSBC PMI index
beat consensus, HSI +0.71% and HSCEI +1.10% also gained. In the local market,
CONSUMER index +0.57% gained the most grounds carried by heavyweights BAT
+1.89%, PPB +1.12%, UMW +0.68%, MFLOUR +5.52%. Market breadth was neutral as
losers beat gainers by a nose 425 : 436. Futures closed at 1877 (parity).
2) Heavyweights : TENAGA
+1.12% RM12.56, DIGI +1.96% RM5.70, IHH +2.34% RM4.81, IOICORP +1.60% RM5.08,
BAT +1.89% RM69.84, TM +1.27% RM6.37, SKPETRO -1.36% RM4.34, AXIATA -0.58%
RM6.85.
3) DBT : TALAMT 240.730mil
@ RM0.0929 (5.70% PUC @ 22.6% discount), SILKHLD 26.1mil @ RM1.13 (5.05% PUC),
IRIS 20mil @ RM0.465.
4) Situational:-
AZRB +4.31% RM0.725 -
Ahmad Zaki Resources Bhd was awarded a contract to build two blocks of office
buildings, retail spaces and external works from Putrajaya Resources Sdn Bhd.
The company also secured another contract from Putrajaya Resources to upgrade
roads and other associated infrastructure at Jalan Alamanda at Precint 1,
Putrajaya. The company said that the contracts amount to RM185.1m with a
contractual period of 28 months, commencing from the date of site possession.
BJFOOD +30% RM2.34 -
Berjaya Food Bhd (BFood) is buying the remaining 50.0% it does not own in Berjaya
Starbucks Coffee Company Sdn Bhd (BStarbucks) for RM279.5m cash. The company
said that it had entered into a conditional share purchase agreement (SPA) with
Starbucks Coffee International, Inc to acquire the remaining shares to make the
coffee chain a wholly owned subsidiary. The SPA is conditional upon the
approval from the shareholders of BFood at an EGM to be convened. The principal
activity of BStarbucks is the development and operation of the Starbucks Coffee
chain of cafes and retail stores in Malaysia.
5) AIRPORT – results for 6
months ended 30/6/14
Revenue -2.4%
RM1.957b Net -63% RM84.036m EPS 6.38 sen
57% below cons(f) Net
RM389.8m; 29% below if excluding losses from jointly controlled entities
The lower revenue was
lower due to fall in construction revenue by 21%, offset by 13% increase in
aeronautical revenue & 7% increase in non-aeronautical revenue. Passenger
movements increased by 11.8%, the implementation of new landing charges (+9%)
since 1/1/2014 & higher passenger service charges imposed since 12/2/2014
contributed to the higher aeronautical revenue. Higher non-aeronautical revenue
came from higher commercial & retail revenue.
Net was significantly
lower due to sharp increase in depreciation, finance cost & utility costs
incurred & recognised in the income statement upon the completion of KLIA2.
Higher employee benefit expenses was a result of additional recruitments &
annual increment. This was exacerbated by the losses of RM53.6m from jointly
controlled entities which the company acquired an additional 40% during the
period.
With the stock trading
above market PER, this disappointing results is expected to impact the stock
negatively – reduce
6) Market – two-tier
market to persist with trading activities focusing on the lower liners while
the blue chips continue to languish amid a weak reporting season.
