FBMKLCI
1867.32 -2.60pts (-0.14%)
Volume 3.194b Value 2.327b
1) The KLCI fell for a 2nd consecutive session inline
with the overall regional market as concerns in Russia & Ukraine continue
to weigh over global sentiments. In the regional market, bourses were generally
weaker led by HSI -0.80% and SHCOMP's -1.34% as investors took profit ahead of
China's Trade data tomorrow. In the local market, penny stocks were actively traded
today with PDZ +17.14%, SUMATEC +2.04%, GLOTEC +7.69% and FRONTKN +9.67%
topping the highest volume list. Market breadth was positive with gainers
beating losers by 459 : 388. Futures closed at 1862.5 (5 pts discount).
2) Heavyweights : GENM +1.16% RM4.33, MAYBANK +0.30%
RM10.00, SIME +0.31% RM9.51, KLK +0.59% RM23.86, TENAGA -1.62% RM12.10, CIMB
-1.00% RM6.90, SKPETRO -0.92% RM4.27, PBBANK -0.20% RM19.76
3) DBT : TMCLIFE 213.842mil @ RM0.48 (26.651% PUC @ 3.2%
premium, block from Berjaya Corp subsidiaries), SCNWOLF 20mil @ RM0.50 (25% PUC
@ 8.3% discount), VS 9.371mil @ RM1.90 (5.03% PUC @ 9.1% discount).
4) Situational:-
KNM +4.80% RM1.09 - KNM Group Bhd, which is a selected subcontractor to Sinopec
Engineering Co., Ltd, says the latter has received a letter of award for a
US$1.329bil contract. Sinopec Engineering had received the letter from PRPC
Refinery and Cracker Sdn. Bhd. a subsidiary of Petroliam Nasional Bhd for an
engineering, procurement, construction and commissioning contract (EPCC) for an
oil refining and petrochemical integrated engineering project at Pengerang,
Johor. +ve.
5) P Dagang
1H June 2014 Tover +7.5% RM16.6bn Net -21% RM340.7m EPS 34.2sen
17% below cons(f) RM816m The higher tover is attributable to higher
average selling prices +8% but partially offset by a 1% dip in sales volume.
Earnings was however lower primarily due to lower margins with retail falling
from 4.9% to 3.9% and to a lesser extent commercial down from 2.8% to 2.1%.
This is partly due to unfavourable timing differences of MOPS prices and also
higher opex attributed to a gain in unrealized forex from aviation contracts
due to strengthening USD.
The company however will continue to push for a better
mix of petroleum products and leverage on its extensive station and dealer
network. Commercial will try improving on margins with a wider customer base
with a regional plan.
Despite the sell down in the stock, valuations remain
expensive, at 29x current year PE. See better alternative for yield and
exposure to KLCI.
6) Market - The KLCI to continue to drift ahead of
reporting season as focus remain firmly on mid caps play.