Monday, November 17, 2014

Market Roundup | 14 November 2014


FBMKLCI   1813.79pts   -2.02pts   (-0.11%)     Volume  1.649b   Value 1.601b
 
1) The KLCI trended closer to the 1800 level as it lost grounds for a 4th consecutive day following the weaker global oil prices after IEA reported weakening global demands. In the regional market, bourses were mixed as the NIKKEI +0.56% gained after the Jap PM decided to call for an earlier election amid mounting expectations that the BOJ will delay in the sales tax hike, SHCOMP -0.27%and HSI +0.28% closed flat before the trading link debut next week. In the local market, INDUSTRIAL-1.82% recorded the biggest lost amongst the sectors weighed by PCHEM -6.83%, PMETAL-3.03%, and COASTAL -3.85%. Market breadth was negative with losers beating gainers by 548 : 235. Futures closed at 1815.5 (2pts premium).
 
2) Heavyweights : PCHEM -6.83% RM5.45, MAYBANK -0.52% RM9.56, KLK -1.46% RM22.84, GENTING -0.75% RM9.22, PBBANK +0.33% RM18.20, BAT +1.72% RM69.68, PETGAS +0.93% RM21.66, CIMB+0.48% RM6.21.
 
3) DBT : LIENHOE 27mil @ RM0.30 (7.46% PUC @ 10.5% discount), XINGHE 10mil @ RM0.095, BARAKAH 7.1m @ RM1.18, YINSON 1mil @ RM2.57.
 
4) Situational:-
ECONBHD 0.00% RM0.96 - Econpile Holdings Bhd has secured a RM30.0m contract for the substructure of a condominium along Persiaran Stonor in Kuala Lumpur. It said it had received the contract from CRCC Malaysia Bhd to undertake bored piling, earthworks and basement substructure works for the project. The duration of the contract is 14 months and is expected to be completed in January 2016.
 
ENCORP+1.46% RM1.39 - Encorp Bhd is seeking RM68.7m in claims from Lembah Penchala Sdn Bhd over wrongful termination of a contract to build four 13-storey blocks of apartments in Ara Damansara. Encorp said its unit Encorp Construct Sdn Bhd had served a notice of arbitration on Lembah Pencala seeking general damages, claims of RM68.7m, refund of proceeds from the performance bond of RM9.0m and financing charges, with costs. It said Lembah Penchala had awarded the contract involving the construction and completion of the main worksfor the four blocks with a total of 409 apartments, three-storey basement car park and other facilities along Jalan PJU 1A/20, Ara Damansara.
 
5) GAB
 
3 months tover+20.7% RM393.2m  Net+10% RM54.6m   EPS 18.07s
 
             26.8% of cons(f) FY15 net RM203.33m
 
the Group revenue grew 20.7% to RM393.2million compared to the same quarter last year. This was mainly driven by higher sales as a result of improved pricing and brand mix. Government’s measures against contraband beers and the slight improvement of consumer sentiments has also benefited GAB. PBIT rose 10.3% which was lower compared to the revenue growth mainly because of higher excise duty and sales tax payments and the increase of commercial investments compared to the same quarter last year.
 
QoQ revenue declined by 4.8% against the preceding quarter mainly due to higher sales in the preceding quarter, reflecting seasonal demand. Despite lower revenue, the Group PBIT improved 13% as a result of costs efficiencies in current quarter and higher commercial spend in the preceding quarter.
 
Currently trades at 19.6x PER with decent dividend yield of 5%. hold.
 
6) market: Continue weakness in commodity prices is expected to weigh on investors sentiment. Expect broad market to continue consolidation with strong support around 1800pts