FBMKLCI
1806.48pts -7.31pts (-0.40%)
Volume 1.391b Value 1.362b
1) The KLCI closed at its day low, extending its losing
streak to 5 days following the flattish US market which stalled at record
levels just before the weekend. In the regional market, HSI -1.21% and SHCOMP
-0.19% were heavily traded as the Hong Kong- Shanghai Cross border stock link
debuts today, NIKKEI -2.96% continue to trail after GDP fell into recession
range despite efforts from the Abenomics. In the local market, stocks were
lightly traded today as the construction index lost the most grounds today weighed
by MUHIBBAH -10.15%, IJM -0.73% and GAMUDA -0.38%. Market breadth was negative
today as losers thumped gainers by 532 : 245. Futures closed at 1803 (3.5points
discount)
2) Heavyweights : GENTING -2.82% RM8.96, BAT -2.98%
RM67.60, AXIATA -0.56% RM7.01, MISC -1.70% RM7.51, YTL -1.82% RM1.61, SKPETRO
-1.28% RM3.08, PCHEM +2.56% RM5.59, PBBANK +0.33% RM18.26.
3) DBT : IDMENSN 25.05mil @ RM0.10 (5.89% PUC), YINSON
6mil @ RM2.57 (0.58% PUC), PA 3.312mil @ RM0.1050.
4) Situational:-
MUHIBBAH -10.15% RM2.30 - Muhibbah Engineering Bhd fell
as much as 18% after the firm was not named as the builder for Petroliam
Nasional Bhd's (Petronas) planned RM2.7 billion regasification facilities. The
group will instead concentrate on other parts of Pengerang, Johor - the
construction of refinery and petrochemical facilities.
5) IOIC
1Q 09/2014
Tover -7% RM3.02bn Net -52%
RM176.7m EPS 2.78sen
33% below cons(f) RM1.39bn
Excluding the effect from the Demerger and translation
difference on foreign currency denominated borrowings for both Q1 FY2015 and Q1
FY2014, the underlying profit of RM268.9 million for Q1 FY2015 is 24% lower
than the underlying profit of RM352.1 million for Q1 FY2014. The plantation profit
increased by 12% to RM281.0 million for Q1 FY2015, as compared to RM250.1
million reported for Q1 FY2014. The higher profit is due mainly to higher FFB
production as well as higher PK prices realised. FFB production for Q1 FY2015
was 967,202 MT as compared to 875,835 MT for Q1 FY2014, i.e. an increase of
about 10%.Resource-based Manufacturing The resource-based manufacturing profit
of RM108.8 million for Q1 FY2015 is 50% lower than RM218.6 million reported for
Q1 FY2014. The lower manufacturing profit is mainly due to lower margin as well
as lower sales volume from oleochemicals and refinery sub-segments.
The company's growth in 2015 is expected from its
Indonesian plantations however profitability will still be largely dictated by
CPO prices. Given its high valuation of 22x forward and uncertain scenario for
commodity prices, we prefer SIME for exposure to this sector given its
restructuring potential.
6) Market - Dwindling volumes with the CI drifting lower
indicate continued caution for the immediate term. Short term strong support
seen at 1780pts on the CI where we expect bargain hunters to resurface.
