FBMKLCI
1825.68 +2.53pts (+0.14%)
Volume 1.580b Value 1.786b
1) The KLCI closed at its high extending its winning
streak to a 4th straight day albeit with light trading volume today; this was
following the flattish US market which paused ahead of the FOMC meeting
tonight. In the regional market, bourses were mixed positive as the HSI
outperformed today gaining +1.63% breaking a 3-day losing streak after the
trading link delay drove valuations lower, SHCOMP also outperformed the region
today gaining +2.07% today. In the local scene, oil and gas related counters
faced downward pressure similar to WTI prices which retested the 80USD/Barrel
following downgrade of the commodity's outlook by analyst, SKPETRO -4.23%,
DIALOG -2.95%, UMWOG -4.39% were some of the names that erased recent gains.
Market breadth was broadly negative today as losers beat gainers by 529 : 284.
Futures closed at 1825.5 (parity).
2) Heavyweights : SKPETRO -4.23% RM3.39, IHH -1.20%
RM4.91, PCHEM +1.66% RM6.10, KLK +2.18% RM22.46, PPB +2.64% RM14.76, DIGI
+1.01% RM 5.96, CIMB +0.48% RM6.20, SIME +0.42% RM9.44.
3) DBT : SEG 29.6mil @ RM1.42 (4.41% PUC), UZMA 3.5mil @
RM3.356 (1.326% PUC @ 3.1% discount), ALAQAR 2.75mil @ RM1.40.
4) Situational:-
TGOFF +1.09% RM0.46 - Tanjung Offshore Bhd's unit, and
Drilltec Offshore Sdn Bhd will establish a 51:49 joint-venture company to
undertake oil and gas business. Tanjung Offshore said the JV company would
involve in marketing, managing, owning, operating, maintainance and repair,
leasing and chartering of drilling rigs in Malaysia.
FGV -0.28% RM3.48 - Felda Global Ventures will be at
forefront of graphene manufacturing revolution with the signing of two
Asia-Pacific distribution agreements. In a statement, FGV said it signed two
distribution agreements for its graphene, giving it market access to key
manufacturing hubs throughout Asia-Pacific. The agreements are between FGV-CNS
and Hong Kong-based RSG Ltd and Graphene CNT Pty Ltd of Australia. The deals,
which would come into effect on Feb 1, 2015, would cover Australia, Asean
(excluding Malaysia), China, Japan, New Zealand, Taiwan and South Korea.
5) GADANG : Q1 08/14
Rev+17% RM133.4m Net+34%
RM9.5m EPS 4.41s
Results
trails FY Cons RM57.3m, making up 17%.
Yoy, revenue & PBT was higher, mainly due to higher
contribution from construction activities. Construction revenue was +21% while
PBT +8.7% due to better contract values achieved and higher progress billings
from on-going projects. Revenue from the Property division was +6% but PBT -15%
mainly attributable to higher marketing costs incurred in the current quarter.
As for the Utility division, revenue was -18% due to disposal of an indirect
subsidiary PT Sarana Tirta Rejiki in Nov 2013 and the weakening of the IDR.
Qoq, revenue was -4% while PBT -2%. Ahead, group expects performance to
improve, on the back of strong outstanding OB of RM1.3b for the Construction
division. In Property, it has GDV of RM2.0b in the pipeline, comprising
on-going developments in Cyberjaya, Bandar Puncak Sena in Kedah, the Vyne &
Capital City JV project; We still like the group for its track records and
strong execution ability, increasing exposure in property development,
expansion in utility business to increase recurring income & future
earnings contribution and growth opportunity in plantation division - Hold.
6) Market : We expect cautious trading to continue into
the week. The market would likely trade sideways with a slightly positive bias,
with the upcoming US FOMC rate decision in mid-week to be a key determinant for
the longer-term direction of the market.