FBMKLCI
1796.22 -6.92pts (-0.38%)
Volume 1.45b Value 1.382b
1) The KLCI broke its 2 day winning streak closing
6.92pts below on thin volume despite the stronger US market overnight which
gained atop of stronger earnings from several big names. In the regional
market, bourses were mixed after CHINA GDP and Industrial production data beat
estimates while retail sales trailed, SHCOMP -0.72% closed lower, HSI +0.08%
and ASX+0.11% closed flat whilst the NIKKEI -2.03%. In the local scene, INDUSTRIAL
-1.00% index lost the most grounds today weighed by PETRONAS names such as
PCHEM -2.14%, PETGAS -0.83% as well as LAFMSIA -1.30% RM9.87, PMETAL -3.50%,
SUPERMX-2.57%. Market breadth was negative today as losers beat gainers by 463
: 304. Futures closed at 1793 (3 pts discount).
2) Heavyweights : CIMB -1.98% RM6.41 (suspended), DIGI
-1.85% RM5.82, PCHEM -2.14% RM5.93, KLK -1.55% RM20.20, PETGAS -0.83% RM21.32,
GENTING -0.65% RM9.06, PBBANK -0.21% RM18.56, GENM +1.48% RM4.10.
3) DBT : TFP 20.6mil @ RM0.23 (10.04% PUC @ 25% premium),
NICORP 10mil @ RM0.125 (1.29% PUC), MSPORT 6.40mil @ RM0.16 (1.23% PUC),
CRESBLD 5mil @ RM1.29 (3.03% PUC @ 7.2% discount).
4) Situational:-
GOLDIS 0.00% RM2.33/ IGB +0.34% RM2.88 - Goldis Bhd's
takeover of IGB Corp at RM2.88 a share has become unconditional after it held
more than 50.0% stake. Goldis said it had received valid acceptances of more than 50.0% of the total
voting shares of IGB Corp. It said the closing date and the time for acceptance
of the offer have been extended from 5pm on Oct 29, 2015 to 5pm on Nov 6, 2014.
Goldis directly own 31.1% or 415.2m shares in IGB while the persons acting in
concert with it collectively held 20.2% or 269.0m shares as of Oct 17. Goldis'
stake currently is 51.3% or 684.3m shares.
5) DAIBOCI: 9mths 09/14
Rev+13% RM260.5m Net -13% RM17.8m EPS 15.68s Div 9.5s
Results
trails, making up 60% of FY14 cons RM29.7m
For 9 months yoy, revenue was 13% higher due to increase
in export contributions from MNC customers in the F&B sector, including
from the new MNC customers. However PBT was lower by 13.5% largely attributable
to the impact of higher raw materials prices since the second half of 2013, particularly
polyethylene and polypropylene resins & films. The effect of the
electricity tariff hike in early 2014 and increased operating expenses due to
higher wages also contributed towards the decline. Qoq, revenue was 4.5% lower
while PBT -20%; Daibochi is still being
squeezed by high raw material prices this year but remains positive on its
topline growth prospects going forward. Long-term topline growth is expected to
come from the export market (particularly from Australia and the Asean region)
while the domestic market is showing some signs of a slowdown, at least in the
short term. Over the past few months, the company secured some major MNC
F&B customers and this should contribute to its topline soon- Hold.
6) Market : More cautious trading expected in this
holiday shortened week. Although short term indicators suggest buying interest
is strengthening & reversing from its oversold situation, the bearish trend
could cap near-term upside. Support still seen at 1780 pts with upside likely
capped at 1820 pts.
