FBMKLCI
1825.11 -2.82pts (-0.15%)
Volume 2.214b Value 1.833b
1) The KLCI saw choppy trading today despite the stronger
U.S market overnight after corporate earnings and upbeat economy data continue
to boost investors sentiments. In the regional scene, NIKKEI +2.05%
rallied today after the Yen fell to the
weakest in 7 years after the Jap PM considered postponing a sales-tax increase,
HSI +0.27% and SHCOMP -0.16% closed flat as financial related stocks outperformed
after regulators said that the trading link would start on Nov 17. In the local
scene, CONSUMER-0.91% index lost the most grounds today as heavyweights PPB
-2.05%, BAT -1.61%, UMW -2.05%, CARLSBRG -2.01% dragged the index down. Market
breadth was negative with losers beat gainers by 625 : 241. Futures closed at
2) Heavyweights : GENTING -2.10% RM9.30, MAXIS -1.46% RM
6.72, SKPETRO -1.59% RM3.09, PPB -2.05% RM15.26, UMW -2.05% RM11.44, BAT -1.61%
RM67.00, MISC +2.89% RM7.82, MAYBANK+0.41% RM9.79.
3) DBT : MAYBANK 10mil @ RM9.75, MINETEC 10mil @ RM0.20
(1.50% PUC @ 33% premium), SILKHLD 5.691mil @ RM0.65 (14.5% discount)
4) Situational:-
SMRT -6.39% RM0.805/MEGB
-0.81% RM0.61 - Private equity firm Creador and listed education
provider SMRT Holdings Bhd have expressed intent to make a buyout offer for
Masterskill Education Group Bhd (MEGB) at 60 sen per share. However, their
offer is subject to a due diligence on the latter, which should end within a
30-day period. In a joint statement, Creador and SMRT said they had received an
undertaking from MEGB's single largest shareholder, Siva Kumar Jeyapalan, who
owns a 32.9% stake, that he would accept any offer for his block of shares.
5) HLI : Q1 09/14 Rev+2% RM524.5m Net+34% RM48.2m EPS
15.62s Div 12s
For the quarter under review, group recorded higher
revenue +2% and PBT +33%. The higher PBT was mainly due to favorable sales mix
and lower production cost for the consumer products segment and a gain of
RM12.6m arising from the redemption of investment in unit trust. Qoq, PBT was
22% higher, again attributable to favorable sales mix of it's consumer products
segment & aforementioned gain on redemption. Post the restructuring
exercise ( backdoor listing exercise of Hume Cement and Hume Concrete ) and
share price adjustment, HLI has emerged as an attractive dividend stock with
6-7% yields in FY15-17, assuming a payout ratio of 50%. There is a possible
upside to the yield as HLI may pay up to 55% of its earnings given the company
has no significant capex over the next two years. Trading at current year
multiple of c8x; Accumulate.
6) Market : The KLCI appears to be headed for more
sideways consolidation with a slight downward bias, between 1820-40 points (
most technical indicators remaining neutral ) in these early days of the
current reporting season, while awaiting for the country's economy GDP data
later this Friday.
