FBMKLCI
1876.69 +0.89pts (+0.05%)
Volume 2.888b Value 2.160b
1) The local index traded in negative territory before
closing flat as positive news in Europe of a rescue package for the struggling
Portuguese Bank improved investors sentiment and helped stabilise the global
equity market. In the regional market, bourses were mixed weighed by
SHCOMP-0.15% after data analysts from the US recommended a take profit stance
on the its gains recently, HSI +0.20% & NIKKEI fell -1.00%. In the local market, TECHNOLOGY
index +1.82% gained the most grounds today boosted by names such as INARI +4.11%, MPI +4.85%, UNISEM +2.35%,
whilst the CONSTRUCTION +1.00% index saw an uptick in volume as GAMUDA +1.89%,
ZELAN +8.33%,AZRB +4.79% and IJM +0.15% tops the most active list. Market
breadth was skewed towards the negative as losers edge gainers by 482 : 403.
Futures closed at 1875.5 (1points discount)
2) Heavyweights : DIGI +0.00% RM5.78, SIME -0.52% RM9.51,
GENTING -0.50% RM9.93, PBBANK +0.30% RM19.88, IOICORP +1.01% RM4.99, CIMB
+0.42% RM7.05, AXIATA +0.43% RM6.97, SKPETRO +0.70% RM4.31.
3) DBT : JAG 2.5mil @ RM0.42, BJLAND 1.698mil @ RM0.78
(5.5% discount), CBIP 1mil @ RM4.70.
4) Situational:-
ECONBHD +1.00%
RM1.01 - Econpile Holdings Bhd has been awarded a RM64.5m contract for
earthworks, piling and structural works for the basement and elevated car park
of a service apartment development project in Kuala Lumpur. Econpile said that
Instant Bonus Development Sdn Bhd had awarded the contract to its unit Econpile
Sdn Bhd. The duration of the contract is 16 months and expected to commence on
Aug 26.
5) GTRONICS : HY06/14 Rev+7% RM174m Net+29% RM31.4m EPS 11.2s
Div 11s
Results
in line with FY cons of RM64.9m
For 6 months yoy, higher revenue & profit coming from
both the Malaysian & Singapore segments, which recorded healthy sales and
net profit improvements. The higher net profit was mainly due to higher volume
loadings from most of the group's customers, better economy of scale coupled
with productivity improvements / cost control programme carried out in the
group. Qoq, revenue+9%, net+23%, again mainly due to reasons stated above (revenue
from Singapore +17%, Malaysia +5%). Ahead, group will continue to focus on
escalating up the value chain and riding on the R&D initiatives in new
products design & development, as well as stepping up efforts in improving
efficiency & cost reduction. We
continue to like the group for it's resilient medium-term prospects with
sensors products to be the key growth driver going forward. Balance sheet
remains strong and net cash position to support its minimum 50% dividend payout
policy ( possibly translating to a decent dividend yield of 4.5%). The group is
in a net cash position of RM131m as at 1Q14; HOLD.
6) Market is expected to continue its consolidation mode
with downside bias in the near-term ( range bound between 1,850 and
1,890pts). The upcoming reporting season
should provide some clue on the market direction, although the lack of fresh
local catalyst and growing geopolitical tension in the Middle East and Ukraine
may continue to weigh down the already weakened trading sentiment.