FBMKLCI
1862.31 -8.68% (-0.46%)
Volume 3.009b Value 1.976b
1) The KLCI broke
down today following the weaker US market before the weekend as Fed Chairman's
speech failed to instill consumer confidence over the Jackson Hole Summit. In
the regional market, SHCOMP -0.51% fell after concerns grew following a set of
weaker industrial data as well as the weakest credit growth numbers, HSI +0.22%
saw choppy trading today but closed in the green following the stronger HSCEI
emerging market index. In the local market, the broad market faced a downward
pressure following the expiration of the T+4 from the large surge in volume
last Tuesday, INDUSTRIAL index lost the most ground today following the
weakness amongst name like PCHEM-2.14%, PETGAS-2.36%, JTIASA -2.72%. Market
breadth was negative with losers thumping gainers by 637 : 276. Futures closed
at 1862.5 (parity).
2) Heavyweights : PETGAS -2.36% RM22.28, PCHEM -2.14%
RM6.40, IOICORP -1.89% RM4.66, TENAGA -0.64% RM12.42, KLK -1.95% RM22.10,
PETDAG -3.22% RM21.00, HLFG -3.40% RM17.04, CIMB +0.41% RM7.19.
3) DBT : TUNEINS 30mil @ RM2.20 (3.99% PUC @ 2.7%
discount), SNTORIA 8mil @ RM1.3675 (1.818% PUC @ 12.4% discount), FIP 5mil @
RM0.97 (2.02% PUC @ 7.7% discount), YINSON 2mil @ RM3.00
4) Situational:-
YINSON +1.71% RM2.96 - Yinson Holdings Bhd announced that
it has entered into a memorandum of agreement to purchase a vessel named
"Ulriken" with a UK-registered company, Golden State Petro on Aug 20,
2014. The said purchase is for Yinson Group's business expansion in the marine
and offshore production sector. Accumulate.
5) FGV : Q2 06/14 Rev+38% RM7.81b Net -35% RM295.5m EPS
8.1s Div 6s
Results trails cons of RM742m
For 6 months yoy, higher revenue due to higher average
CPO realized price of RM2619/mt vs RM2279/mt in 2013, increase in OER of 20.44%
in 2013 to 21.03% in 2014 as well as the consolidation of FHB into the
group. However, Profit from continuing
operations -20% as a result of FV losses in LLA of RM217.7m ( vs a gain of
RM176m in 2013). In the Plantation segment, profit -34% due to the LLA losses.
Profit from the sugar segment fell 14% due to lower exports and domestic sales
of 24% & 11% respectively. Qoq, revenue +9.6% due to increased contribution
from the sugar, downstream & MLO segments. Plantation earnings-17% due to
lower margins achieved. The sugar segment +41% due to higher sugar demand for
domestic consumption.
Going forward, the bright prospect from the plantation
division could be neutralised by concerns over its downstream operations.
Manufacturing, logistics and others division may be dragged by lower throughput
handled by the logistics unit and weak fertiliser earnings. FGV is expected to
hive off its non-core assets such as logistics and information technology. FGV is
also anticipated to acquire more agricultural assets such as plantation land
bank; Hold
6) Market : Expect the market to take a short breather,
probably easing towards the 1855 level due to lack of domestic catalyst, profit
taking and the generally uninspiring earnings season so far. Support at 1840
points remain in place. Advocate accumulation if market eases to that level.