Tuesday, July 1, 2014

Market Roundup | 27 June 2014


 
 
FBMKLCI   1880.93  -9.04pts (-0.48%)   Volume  1.644b   Value 1.803b
 
1)The KLCI erased the week's gains closing -9pts below weighed by selected bluechips today after the US market closed flat overnight. In the regional market, bourses were mixed just before the weekend as HSI +0.10% and SHCOMP -0.11% both swung between gains and losses just before the release of CHINA's manufacturing data on Monday & US ISM data over the weekend. In the local market, FINANCIAL stocks were the biggest loser amongst the sectors today weighed down mainly by PBBANK -1.50%, MAYBANK -0.30%, RHBCAP -1.05%. Market breadth was slightly negative today as losers inched past gainers by 393 : 371. Futures closed at 1884 (4 pts premium).
 
2) Heavyweights : PBBANK -1.50% RM19.60, GENTING -1.18% RM9.98, TENAGA -0.65% RM12.14, ASTRO -3.09% RM3.44, PETGAS -0.73% RM24.48, MAYBANK -0.30% RM9.80, SKPETRO -0.68% RM4.38, IHH +0.92% RM 4.39.
 
3) DBT : SUMATEC 35mil @ RM0.34 (1.12% PUC), YTLPOWR 15mil @ RM1.48, TROP 10.330mil @ RM1.53
 
4) Situational:-
GBGAQRS + 1.66% RM1.22 - Gabungan AQRS Bhd, a construction services provider and property developer, is currently tendering for construction projects worth more than RM1.0b. The group said that it hopes to strengthen its current order book of RM1.9b. The group said that they aim to scale up their construction operations to have an ongoing order book of more than RM2.0b at any one time.
 
 
5) YINSON : Q1 04/14 Rev+28% RM294.1m Net+96% RM30.3m EPS 11.73
           Results in line with cons RM120.8m
 
For 3 months yoy, higher revenue was recorded in the marine division +480%, mainly due to increase in contribution from new subsidiary Yinson Production AS, acquired in Dec 2013. Revenue from transport division -2.8%, trading division -8%. There was a significant improvement in group PBT +111%, mainly attributable to increase in contribution from marine segment and Joint ventures and offset by increase in net forex losses & finance cost. PBT from the share of results from JV +228% due to revenue contribution from a FPSO of RM15.2m and contribution of RM5.2m from a JV of subsidiary acquired in Dec 2013; We continue to like Yinson's transformation and its conservative approach in securing only long-term contracts, plus it's foothold in the high growth FPSO market. The immediate catalyst for the stock is it's bid to secure the Eni's FPSO charter for the Sankofa-Gye Nyame field under the Offshore Cape Three Points (OCTP) licence, offshore Ghana.  The contract is due to be announced soon with at least three contractors officially in the running for the award. Other catalysts include i) FPSO expansion, ii) FPSO redeployment, and iii) synergy enhancement.
 
 
6) Market: Expect more range bound trading next week barring external factors. Follow through rotational play on second & third liners may continue while half yearly closing activities may impact the 30-index stocks on Monday.