FBMKLCI
1833.77pts +24.64pts (+1.36%)
Volume 2.241b Value 1.915b
1) The KLCI outperformed today putting up 24pts inline
with the stronger global market following PBOC's surprise move to cut interest
rates as well as ECB's intentions to boost declining inflation in the country.
In the regional market, bourses were stronger as well following the strong
rebound in commodity prices, SHCOMP +1.85%, HSI +1.95%, ASX +1.08% all closed
distinctively above. In the local scene, O&G related stocks rallied today
led by DIALOG +10.34%, PERISAI +7.74%, SKPETRO +4.18%, PERDANA +4.00%,
YINSON+3.3%. Market breadth was widely positive today as gainers led losers by
510 : 297. Futures closed at 1839.5 (6pts premium).
2) Heavyweights : TENAGA +3.73% RM14.46, CIMB +1.74%
RM5.84, DIGI +2.31% RM6.19, SKPETRO +4.18% RM3.24, AXIATA +1.26% RM7.19, TM
+2.78% RM7.38, IOICORP +2.39% RM4.71, FGV +5.55% RM3.42.
3) DBT : YFG 13mil @ RM0.1086 (2.13% PUC @ 27% premium),
MINETEC 11mil @ RM0.17 (1.65% PUC), WZSATU 3.5mil @ RM1.9540 (1.38% PUC),
YINSON 1.2mil @ RM2.67 (4% discount).
4) Situational:-
WILLOW + 1.23% RM0.82 - Willowglen MSC Bhd's wholly-owned
unit, Willowglen Services Pte Ltd, has received a RM14.2m contract from
Singapore Power. Willowglen said the award was for the supply and installation
of an intruder detection system for distribution sub-stations. The contract is
expected to be completed by Nov 13,
2016. It is not renewable and the risks in the contract are the normal business
risks. Willowglen said the contract was expected to contribute positively to
the group's earnings and net assets per share for the financial years ending
Dec 31, 2015 to 2016.
5) WCT
9mths 9/2014
Tover -4% RM1.34bn Net -30%
RM100.2m EPS 9.2sen
19% below cons(f) RM164.3m
The lower turnover and profits are mainly due to lower
property development billings and lower project margins. Segmental wise civil
and construction achieved op profit of RM87m, prop dev and inv RM80m.
Although the company continues to maintain a healthy construction
order book of RM3.7bn, cooling measures by the government has impacted its prop
dev arm significantly and a short term turn around is unlikely. So far it has
failed to capture any packages of the high profile MRT project and thus we
expect its performance to continue to lag the market's preferred favorites in
this sector, Gamuda and IJM.
6) Market - Cheap liquidity driven by central banks
easing in China and possibly Europe should continue to prop up the market and
the KLCI could trend higher to its first resistance of 1848pts. Trading
activity will remain in battered O&G names ahead of the OPEC meeting 27th
Nov. Our favorites in this sector remain Yinson and Perdana.
