FBMKLCI
1874.81pts -4.08 (-0.22%)
Volume 2.987b Value 2.444b
1) The KLCI opened
in the red before sliding lower following the weaker HSBC PMI reading released
by CHINA today. In the regional markets,
NIKKEI +0.88% bucked the trend after the weakening Yen boosted Japanese
export stocks; SHCOMP-0.44% and HSI -0.66% remained lacklustre following the
weaker reading which fell to a 3 month low for the month of August. In the
local market, the laggard PLANTATION -1.40% index loss the most grounds today
weighed down by heavyweights IOICORP -3.4%, KLK -2.93%, IJMPLNT -1.37%, FGV
-0.25% after weaker than expected results was posted while CPO futures
continued to drift lower. Market breadth turned positive in the 2nd session as
gainers outpaced losers by 457 : 393. Futures closed at 1872 (2.5pts discount).
2) Heavyweights : IOICORP -3.40% RM4.83, KLK -2.93%
RM23.16, GENTING -1.42% RM9.68, YTL -1.89% RM1.55, DIGI -0.522% RM5.72, CIMB
+0.70% RM7.12, SKPETRO +1.45% RM4.19, IHH +1.41% RM5.02.
3) DBT : COMPUGT 17.5mil @ RM0.05, MUIIND 6mil @ RM0.26,
CHINWEL 5mil @ RM1.48 (1.83% PUC @ 4.6% discount), EKOVEST 1mil @ RM1.33.
4) Situational:-
OLDTOWN (RM2.06): Oldtown Bhd is planning to open 21 to
27 new cafes in Malaysia, Singapore, Indonesia and Australia in the financial
year ending March 31, 2015 (FY15). It plans to open 12 to 15 new outlets in
Malaysia, two to three in Singapore, six to eight in Indonesia and one in
Melbourne or Sydney, Australia. On top of that, it has a medium-term plan to
set up a new food-processing centre in Guangdong Province, China to support the
growing number of new cafés.
5) NAIM
6 Months Revenue -0.5% RM312.2m Net +148% RM124.6m (ex
exceptional Net +25% RM62.9m) EPS 52.58sen
Annualised basis 16% above cons(f) Net RM108.4m but Q2
Net 15.7% lower than Q1
The revenue was mainly contributed by the Construction
segment (+15%) on account of higher progress of construction works of existing
projects, especially from those contracts secured in 2013. Property segment
revenue was 14% lower than corresponding 6 months of 2013.
Profit before tax of RM139.1 million was achieved for the
current six months period, which was 121% higher when compared against profit
of RM62.9 million in the corresponding period of 2013. This was mainly
contributed by a substantial gain of RM61.7 million arising from the disposal
of partial interests in an associate (Dayang) during the period. Improvement in
the Construction division led to the increase in the overall group profit for
the period.
QonQ profit of both the construction and property
divisions were lower – construction -51.7% to RM2.9m due to revision in profit
margin of some substantially completed projects; property -66% to RM8.9m due to
lower contributions from substantially completed projects.
Q2 performance is disappointing, expect further weakness before
accumulating the stock for its cheap valuations (PER < 8x & p/bk of
0.8x), potential contract wins from SCORE and the market value (RM933m) of
their 30.91% stake in Dayang is more than its market cap of RM898m.
6)Market: institutional stocks may see lacklustre trade
ahead of Janet Yellen & Mario Draghi take on their economies and view on
monetary policies at the Jackson Hole annual symposium. Lower liners will
continue to hog the limelight.