FBMKLCI
1816.24pts -8.87pts (-0.49%)
Volume 1.691b Value 1.815b
1) The KLCI dipped below the 1820pts support level
dragged by banking heavyweights MAYBANK,
PBBANK and CIMB after the US market stalled at its record highs on Tuesday with
tepid volume due on Veterans day. In the regional scene however, bourses
continue to climb ahead of the widely anticipated Hong Kong and China trading
link next week as firms reported a surge in brokerage, SHCOMP +1.00% & HSI
+0.55% both closed decisively higher. In the local scene, INDUSTRIAL -1.29%
index was the biggest loser today weighed down by PETGAS -2.82%, MISC-2.43%,
PPB -1.44%, SIME -0.41%. Market breadth
was negative today as losers beat gainers by 510 : 265. Futures closed at
1809.5 (7 pts discount)
2) Heavyweights : MAYBANK - 1.43% RM9.65, PBBANK -0.87%
RM18.10, PETGAS -2.82% RM21.34, CIMB -0.95% RM6.25, IHH -2.30% RM4.67, MISC
-2.43% RM7.63, TENAGA +1.97% RM13.40, MAXIS +1.78% RM6.84.
3) DBT : YINSON 4mil @ RM2.57 (0.387% PUC @ 2.7%
discount), FABER 3.5mil @ RM3.01, ISPSAH 3.4mil @ RM1.4740, TITIJYA 2.05mil @
RM2.14
4) Situational:-
PUNCAK +4.3% RM 3.60 - Air Selangor
inks accord involving
total of RM9.65bn. Selangor's
new water entity,
Pengurusan Air Selangor SB (Air Selangor), has signed the
share S&P agreement with Puncak Niaga Holdings, marking the start of the takeover of the
operations and maintenance of water treatment plants and water supply services
in the state. Following the agreement, Air Selangor is now the new owner of
Puncak Niaga SB
and Syarikat Bekalan
Air Selangor (Syabas). The group
has set aside RM534mil from the total proceeds of RM1.6b to be distributed to
shareholders as special dividends (RM1.00). The deal is expected to be
completed in 60 days from the SPA.
5) HAP SENG PLANT
9mths 09/2014 Tover +22.7% RM368.8m Net +59% RM92.4m 11.6sen
4% below
cons(f) RM127.6m
Group PAT for the year to date was higher than the
preceding year corresponding period by 59% and 60% respectively primarily due
to higher sales volume and higher average selling price of CPO and PK in the
first half of the financial year. Consequently, basic earnings per share for
the year to date increased to 11.55 sen from 7.24 sen in the preceding year
corresponding period.
In the 3Q CPO sales volume was 13% higher at 47,636
tonnes whilst Palm Kernelsales volume was 7% lower at 8,935 tonnes due to
timing of deliveries. Average selling price realization of CPO and PK for the
current quarter were RM2,215 and RM1,412 per tonne respectively as compared to
the preceding year corresponding quarter of RM2,340 per tonne for CPO and
RM1,271 per tonne for PK. Production costs were mainly affected by higher
manuring costs and higher field costs due to increase in harvesting rate and
labour mobilization costs.
We rate it a hold based on its current PE of 15,8x and
indicative yield of 4.2%.
6) Market - Current CI pull back should see strong
support ard the 1800pts levels although selling in mid/smaller cap may continue
until higher volumes are attained otherwise this current trend may persist till
mid November.