FBMKLCI
1815.81pts -0.43pts (-0.02%)
Volume 1.695b Value 1.727b
1) The KLCI closed flat after trading in the red for most
parts of the day. This was inline with the weaker US market after it broke its
6 day winning streak following the looming geopolitical conflicts in Russia and
Ukraine. In the regional scene, bourses were mixed as the NIKKEI +1.14% gained
today amidst the weakening yen vs the dollar, HSI +0.34% and SHCOMP -0.36%
closed flat while the ASX slipped 1.35% today. In the local market, yesterday's
sell off continued in the broad market as ACE -1.77% market and TECHNOLOGY
-1.74% names lost the most grounds today weighed by IFCAMSC -4.19%, DGB -9.67%,
FLONIC -8.33% & INARI -5.00%, MPI -2.33%, GHLSYS -2.45%. Market breadth was
negative today as losers beat gainers by 553 : 245. Futures closed at 1819.5pts (4pts premium).
2) Heavyweights : CIMB -1.12% RM6.18, FGV -5.26% RM3.42,
TM -1.38% RM7.10, TENAGA+0.74% RM13.50, AMBANK +2.51% RM6.52, BAT +2.39%
RM68.50, IHH +1.71% RM4.75, GENTING +0.97% RM9.29.
3) DBT : NIHSIN 12.722mil @ RM0.3523 (5.39% PUC @ 9.1%
discount), ASDION 8mil @ RM0.25 (7.09% PUC @ 34.3% discount), YINSON 2mil @
RM2.57 (4.2% discount).
4) Situational:-
YINSON +1.51%
RM2.68 - Petronas has awarded three licences to Yinson Holdings associate
Yinson Energy Sdn Bhd which will enable it to tender in future projects offered
by other oil companies. It said the first licence was for the floating offshore
facilities and the second was for the mobile offshore facilities. The third was
for the engineering, design, architecture and draughting services – naval
architecture and marine engineering. We are positive on this turnout as it
would mean that YINSON can now be considered a main contender of floating units
in Malaysia. BUY.
5) Maxis
9 Months Revenue
-9% RM6,266m Net -7% RM1,379m Eps 18.4 sen
5% lower
than cons(f) FY14 net RM1,950m
Year-to-date, the decline in revenue was primarily driven
by the decline in prepaid and wireless broadband subscriptions, the decline in
voice and SMS usage and the proactive measures taken to offer worry free
propositions to the customers with the introduction of capped data roaming
prices to 106 countries, free basic Internet for prepaid users and the
significant downward re-pricing of postpaid pay per use charges. In spite of
the financial impact of some of these measures, mobile Internet revenue grew by
14.5% to RM1,679 million and was primarily driven by higher Internet usage and
higher smart phone penetration.
Total cost base was 13.7% lower at RM3,037m. The
reduction was primarily driven by lower traffic and device related expenses, as
well as lower staff costs, resulting in EBITDA of RM3,229 million and EBITDA
margin of 51.5%, against RM3,339 million and 48.7% in the corresponding period
last year.
Consequently, PAT for the period was 6.1% lower at
RM1,390 million, against RM1,480 million in the same period last year.
The co has declared a third interim single-tier
tax-exempt dividend of 8.0 sen per ordinary share in respect of the financial
year ending 31 December 2014, to be paid on 26 December 2014. The total
dividends for the nine-month ended 30 September 2014 is 24.0 sen per ordinary
share (2013: 24.0 sen).
Trading at 28x FY14 PER & a prospective yield of
4.6%, trim into strength & switch to Digi for a cheaper & dynamic
exposure to telcos.
6) Market: with negative technical indicators & weak
market sentiment, the broad market is expected to continue its
correction/consolidation until towards the later part of the month before
month-end buying support surfaces.
