FBMKLCI
1840.50 -2.61pts (-0.14%)
Volume 2.493b Value 1.979b
1) The KLCI recovered from its day's low of 1829.24
(-13.87pts) to close just 2.6pts below parity as investors sentiment turned
cautious following a weaker US market overnight resultant of selldown in tech
stock and asset reallocation from equities. In the regional market, bourses
were inline with the global sentiment as the NIKKEI -0.88%, HSI -0.38%,
ASX-1.28% fell into the red while the SHCOMP +0.11% closed just flat before the
release of US GDP data tonight. In the local market, FINANCE index -0.57% lost
the most grounds today weighed by CIMB -0.14%, HLFG -1.80%, MAYBANK -0.30%,
PBBANK-0.21% today. Market breadth was negative before the weekend as loser
beat gainers by 475 : 322. Futures closed at 1839 (1.5pts discount)
2) Heavyweights : CIMB -0.14% RM6.99, MAYBANK -0.30% RM9.85,
PBBANK -0.21% RM18.90, GENM 0.00%, DIGI +0.86% RM5.83, PETGAS +0.79% RM22.86,
SIME +0.43% RM9.19, KLK +0.74% RM21.76.
3) DBT : PARKSON 7.024mil @ RM3.10 (5.4% discount),
CSCENIC 5.8mil @ RM1.09 (4.81% PUC @ 8.5% discount), GLOTEC 5mil @ RM0.10.
4) Situational:-
ECONBHD -0.92% RM1.07 - Econpile, has received a letter
of award from Cipta Klasik Sdn Bhd for a substructure work contract worth
RM35.4m. Econpile said under the contract, it was expected to undertake
earthworks, bored piling, contiguous bored pile and basement sub-structure
works of a service apartment residential property development project at Lot
218 and Lot 256, Kuala Lumpur.
5) COASTAL
Coastal Contracts Bhd announced that its wholly-owned
subsidiaries, Coastal Offshore (Labuan) Pte Ltd and Thaumas Marine Ltd have
collectively secured contracts for the sales of seven units Offshore Support
Vessels (OSV) for an aggregate value of approximately RM444 million.
This has strengthened the Group's orderbook to RM2.6
billion. Of this, the vessels sales order book constituted RM1.4 billion. The
balance order book comprised RM1.2 billion for the Group's first Jack-up Gas
Compression Service Unit (JUGCSU) charter contract for Petroleos Mexicanos
(Pemex). All of these vessels are expected to be delivered in 2014 and 2015.
Postive as it beefs up its orderbook and provide earnings
visibility until 2015. Re-rating catalyst when it secured contract for its
maiden jack up rig that is due for delivery in the 4QFY14.
6) YINSON
1H JulFY14
Tover+26% RM574.6m Net+137%
RM60.98m Eps 6.42s
Result inline with cons RM118.8m
Yoy revenue in Marine division+316% or RM144m mainly due
to increase in contribution from new subsidiary Yinson Production AS, acquired in
Dec 2013. This is offset by fall in revenue from transport-7.3%, Trading-6%.
PBT gained 147% to RM77.16mil mainly attributable to marine segment as well as
joint ventures which rose RM34.8m (+222%). This was offset by higher finance
cost +169%. JV contribution includes contribution from a FPSO of RM21.7m and
contribution of RM9.7m from a JV of subsidiary acquired in Dec 2013.
QoQ, PBT rose 3.7% to RM39.3mil mainly due to increase
contribution from marine RM2.3m, Trading RM1.8m and offset by decrease in contribution
of JV of RM8mil.
Recent acquisition of a VLCC may be a prelude to it
securing a FPSO job. Should Yinson bag a FPSO contract this year, it would be a
major positive and expands its fleet of FPSO. Accumulate
7) Market: Expect investor jitters to persist with key
support at 1830 level.