FBMKLCI
1878.89 +6.73pts (+0.36%)
Volume 7.669b Value 3.304b
1) The KLCI closed
at its day high as the market volume recorded yet another historical high at
7.6bn today helped by active trading amongst selective penny names; this higher
local index was inline with the stronger US market overnight as investors eye the
Fed's minutes which will be released tonight. In the regional scene, bourses
were mixed as the HSI +0.15% stalled after reaching a 6 year high, SHCOMP
-0.23% declined before the release of manufacturing consensus tomorrow (HSBC
PMI). In the local market, the most activelist was topped by names such as
GLOTEC +14.28%, SUMATEC -27.86%, HUBLINE +11.11%, PDZ -21.33% which makes up
for ~38% of total volume traded today. Market breadth turned negative in the
later session as losers thumped gainers by 758 : 227 at the close. Futures
closed at 1876.5pts (2 pts discount).
2) Heavyweights : KLK +3.20% RM23.86, CIMB +1.00% RM7.07,
PETGAS +2.03% RM23.10, DIGI +1.23% RM5.75, GENM +1.13% RM4.45, IHH +1.02%
RM4.95, GENTING -0.80% RM9.82, SIME -0.52% RM9.50.
3) DBT : PERISAI 70.683mil @ RM1.3950 (5.92% PUC @ 1%
premium), MUIIND 17.957mil @ RM0.2593 (3.7% premium), TROP 15mil @ RM1.38
(1.07% PUC).
4) Situational:-
ARMADA -0.29% RM3.33 - Bumi Armada Bhd's subsidiary, Bumi
Armada Offshore Holdings Ltd and its consortium partner, PT Armada Gema
Nusantara has secured a RM3.8b contract to supply a floating production,
storage and offloading (FPSO) vessel to Husky-CNOOC Madura Ltd. The vessel
lease is for use in the Madura BD field, about 60.0 km off east of Surabaya and
16 km south off Madura island. Bumi Armada said the 10-year contract has an of
five annual extensions worth RM469.0m.
5) KLK : Q3 06/14 Rev+24% RM8.35b Net+24% RM820.9m EPS
77.1s Div 15s
Results
trails cons FY RM1.189b
For 9 mths yoy, PBT was 24.5% higher on the back of a 24%
improvement in revenue. Plantation profit climbed 34% on account of better CPO
selling prices ( RM2430/my vs RM2268/mt last year) and sharply higher palm kernel selling price
( RM1615/mt vs RM1068/mt). In addition, FFB production increased slightly with
a reduction in CPO production cost. Manufacturing sector's profit was 32%
higher, aided by an unrealized gain of RM10.3m arising from changes in FV on
outstanding derivative contracts. Revenue was also 22% higher, attributed to
increase in sales volume as well as selling prices. Profit from the Property
sector dipped 45% due to drop in profit recognition from the development
project in Bandar Seri Coalfields, Sungai Buloh. Qoq, PBT was 35% lower while
revenue was 1% lower; It was recently
reported that Indonesian lawmakers are mulling a bill to restrict foreign
ownership of plantations there to no more than 30% (from the current 95%). In a
worst case scenario and the restriction comes about, KLK would be the most
affected among big cap planters. Other risks include economic slowdown in its
key markets, high production of vegetable oils and/or changes in rules and
regulations dampening CPO prices and forex losses due to currency weakness in
key operating countries - Hold.
6) Market : Market is expected to continue trading
range-bound with key indicators turning slightly positive. Going into the
earnings season, we should see stable trading ( between 1860-80 points) while
the rotational play on small cap and penny stocks is expected to persist,
judging from the high volume traded