FBMKLCI 1869.92 -6.77pts
(-0.36%) Volume 2.770b
Value 2.099b
1) The KLCI retraced today inline with the US market
which dipped sharply over night
following reports that Russia is building up its military presence on
the border of Ukraine. In the regional markets, NIKKEI -1.09%continued led in
losses amongst Asian Equities as it fell for a 5th straight session today;
SHCOMP -0.11% & HSI -0.26% also fell after technical indicators reached
over bought levels. In the local scene, CONSTRUCTION index -0.42% was the
biggest loser today weighed down by IJM- 1.05%, PRTASCO -5.97%, MUDAJYA
-0.80% followed by the FINANCIAL index
-0.36% which saw losses amongst selective heavyweights CIMB -1.13%, PBBANK
-0.40%, HLFG -0.79%. Market breadth was negative with losers beating gainers by
493 : 346. Futures closed at 1867.5 (2.5points discount)
2) Heavyweights : CIMB -1.13% RM6.97, MAXIS -1.49%
RM6.58, TENAGA -0.64% RM12.30, PBBANK -0.40% RM19.80, GENM -1.60% RM4.28, DIGI
-0.51% RM5.75, AXIATA -0.28% RM6.95, SIME -0.31% RM9.48.
3) DBT : KRETAM 15mil @ RM0.50 (11.6% discount), XINGHE 10mil
@ RM0.23, MENANG 3mil @ RM1.05 (6.25% discount).
4) Situational:-
PRTASCO -5.97% RM1.73 - Protasco Bhd has called off its
venture into the onshore marginal oilfield development in Indonesia. The
company said that its amended sale and purchase agreement to acquire a 63.0%
stake in Indonesia-based oil and gas company PT Anglo Slavic Indonesia from PT
Anglo Slavic Utama had lapsed on the 28th of July as the conditions laid out in
the agreement had not been fulfilled by PT ASU and the security provider within
the conditional period of six months.
5) MISC HY06/14 Rev+3.6% RM4.83b Net+29% RM774.5m EPS
17.4s Div 4s
Core
earnings in line, making up 48% of FY cons RM1.715b
For 6 months yoy, higher revenue was mainly due to
improved freight rates in Petroluem business and higher earning days in in LNG
business. However, a smaller fleet of operating vessels in the Chemical
business & lower revenue recognised by the Heavy Engineering partially
negated the increase. Group PBT was 25% higher, mainly from higher revenue
& lower operating costs from a smaller fleet of operating vessels.
Segmental a) Energy Related Shipping
segment Rev+12%, due to higher earning days in LNG business and improved
freight rates in Petroluen business. Chemical and Petroluem shipping prospect
remain challenging amidst a vessel oversupply market. Long term contract in LNG
business to provide stability. b) Other Energy Business Rev-6%, due to lower revenue by Heavy
Engineering from different phases of project construction. Qoq, Rev +11%, but
PBT-35% due to an operating loss incurred in Petroluem business from a decline
in freight rates ; MISC now trades at c17x FY14F PE, falling to 15x in FY15,
which we see as inexpensive considering the strong growth and rising dividend
yields.It also stacks cheaply against some of the listed O&G companies in
Malaysia - Hold
6) Market : Further sideways consolidation expected to
continue in the near-term on the KLSE, with volume still focused on penny
stocks. Trading is likely to be range bound between 1860-1890 points.