FBMKLCI
1809.13pts -13.16pts (-0.72%)
Volume 1.766b Value 1.659b
1) KLCI lagged behind its peers in the region, falling
and close near its day low as key heavyweights led by CIMB, AXIATA and GENTING
was among the biggest losers despite a stronger DOW overnight after a spate of
upbeat U.S. data. Regional markets were generally positive led by SHCOMP+1.4%,
HSI+0.4% recouping weekly losses while Nikkei erased earlier losses and ended
up 0.3% after Prime Minister Shinzo Abe dissolved parliament's lower house on
Friday. In the local market, Trading and Services-0.68% was the biggest loser
led by PETDAG-4.9%, Axiata-1.4%, and GENTING-2%. Market breadth was negative
with decliners outpacing advancers 464:295. Futures closed at 1812 (3points
premium)
2) Heavyweights : CIMB-2.7% RM5.74, AXIATA-1.4% RM7.10,
GENTING-2.08% RM9.40, SIME-1.02% RM9.65, FGV-4.4% RM3.24, PETDAG-4.9% RM17.44,
YTL-2.4% RM1.60, MISC+2.2% RM7.40
3) DBT : BARAKAH 86mil @ RM1.36 (11.39% PUC), JOBSTREET
9.048mil @ RM2.75 (1.28% PUC @ 2.8% discount), ECOFIRST 6.82mil @ RM0.30 (4.7%
discount), YINSON 0.16mil @ RM2.60.
4) Situational:-
SKPETRO+0.32% RM3.11 – Share price rose to a high of
RM3.21 after announcing acquisition of interest in Petronas Carigali Overseas’
and PC Vietnam Limited’s assets in Vietnam for a price-tag of USD400m (RM1.3b).
They have also been awarded two PSCs for onshore Sabah with minimum 2D seismic
and drilling commitments that amount to c.USD40m (RM130m).
IJM+1.34% RM6.81 - IJM Corp announced that it has secured
building works amounted RM355.7m from Utama Lodge Sdn Bhd. The project, The
Poutporri, in Ara Damansara, PJ involves the building works of 8 blocks of 11
to 13-storey serviced apartments (712 units) on top of a 3-storey podium
comprising of retail outlets, elevated and basement car parks, multi-level club
house and rooftop recreational. The construction period of the project is 28
months.
5) PENERGY
9months Tover+25%
RM417m Net+119% RM28.17m EPS
8.76sen
Excl tax credit, Core profit of RM18.56m is 53% of
FY Cons RM35.3m
Yoy, revenue rose 25% to RM417m while PBT rose 15.7% to
RM19.8m mainly due to positive contribution from Integrated Brown Field
Maintenance and Marine Offshore Support Services. IBM revenue+18% to RM284.5m due to higher
activities executed for the Hook up, Commissioning and Top-side Major
Maintenance (“HuCC/TMM”) contract from PCSB. Marine segment revenue rose 160%
to RM56.1m contribution from a wholly owned subsidiary which was acquired in
May 2013.
QoQ, revenue+50% to RM173m with PBT raising to RM8.1m
from RM3.5m as major contacts for HUCC/TMM ramp up in activities. Fabrication
division also saw revenue increasing 40% to RM10.1m with PBT losses narrowing
from RM1.2m to RM0.3m.
Earnings visibility is fairly strong backed by its
HUCC/TMM contracts which is valued at RM3-3.5bn. With the success in KBM,
company has emerged as a strong candidate for future PSC/RSC. Recent selldown
has offered an opportunity to accumulate.
6) Market: Index is expected to see support around the
1800pts level with stronger close expected for year end. Accumulate on Weakness