FBMKLCI
1818.38pts +11.90pts (+0.66%)
Volume 1.755b Value 1.708b
1) The KLCI rebounded strongly today, closing 11 pts
above parity following dovish ECB statements indicating that the the bank is
prepared to buy government bonds in order to stimulate the Euro economy; the
U.S market also recovered to close at record highs once more before the end of
the session. In the regional markets, bourses were mixed as the HSI closed
-1.2% down today after the lop sided trading link showed more trades flushing
in the SHCOMP-0.71%, NIKKEI +2.18% also gained after the Japanese government
hinted on more stimulus to curb recession. In the local market, selling
pressure over the broad market eased as the TECHNOLOGY +1.78% index
outperformed, boosted by GTRONIC +5.38%, UNISEM +3.72%, GHLSYS+4.60%, as it
outpaced the rest of the sector. Market breadth was positive as gainers beat
losers by 437 : 345. Futures closed at 1821pts (3pts premium).
2) Heavyweights : AXIATA +2.71% RM7.20, DIGI +3.52%
RM6.16, KLK +4.78% RM23.66, TENAGA +1.03% RM13.64, IHH +1.88% RM4.87,
MAYBANK+0.41% RM9.59, PPB +2.03% RM15.06, IOICORP -2.12% RM4.60.
3) DBT : MINETEC 5mil @ RM0.20, FABER 3.5mil @ RM3.015,
TITIJYA 2.05mil @ RM2.1470 (4.7% premium).
4) Situational:-
AAX -6.04% RM0.70 - AirAsia X Bhd is having trouble
paying its staff and was forced to dole out salaries on a staggered basis last
month, The Edge Financial Daily reported today amid the carrier’s plummeting
share prices on the stock market. The long-haul sister company to budget
airline AirAsia allegedly issued a circular stating that basic salaries, fixed
and productivity allowances, and overtime were to be paid on October 24 while
variable allowances that include flying, sector and night stop allowances and
commissions were to be paid on October 31.
5) MRCB 9 months 09/14
Rev+69% RM1027.6b Net+42% RM157.9m EPS 9.34s
Core
earnings of RM56m ahead of FY cons of RM60m
For 9 months, higher revenue was mainly due to
contributions from the group’s newly acquired property development
subsidiaries, ie from the 9 Seputeh and PJ Sentral’s development in addition to
the on-going development in Q Sentral Office and The Sentral Residences. These
are coupled with revenue generated from the engineering and construction
division. The higher PBT of RM204m was also due to recognition of profit from
the above-mentioned development projects, but included disposal gains from the
sale of investment in DUKE ( RM94.9m) and other one off gains of RM7.3m. Qoq,
revenue was 53% higher while PBT was flat. Ahead, the group’s expansion plans
which includes acquiring land banks at prime location and also being a
transportation hub developer will provide the platform to further grow it’s
revenue & earnings base.
We still like the group for it’s prime landbanks in Klang
Valley & Penang, its strength as a transport oriented developer ( TOD) and
it’s pipeline of launches amd potential E&C contracts wins in FY15. MRCB is
gradually realising its transformation moves, which is positive for its property
development division – Accumulate.
6) Market : . After an uninspiring GDP report, can forsee
market consolidation to continue into the week ahead. Can expect trading to be
range bound between 1800-1830 points in the near term.