FBMKLCI
1838.56pts +4.79pts (+0.26%)
Volume 2.091b Value 2.462b
1) The KLCI closed higher today following the stronger
U.S market as investors continue to thrive on easy monetary policies globally.
In the regional market, bourses were mostly stronger as the NIKKEI and SHCOMP
continue to gained amidst China's rate cut while the HSI was weighed down by
Financial and Property stocks on profit taking. In the local scene,
INDUSTRIAL+1.25% index outperformed the CI boosted by heavyweights PETGAS
+3.39%, PCHEM +2.12%, LAFMSIA +1.01%, HUMEIND +3.06%. Market breadth was
negative with losers beating gainers by 476 :308. Futures closed at 1841.5
(3pts premium).
2) Heavyweights : DIGI +3.23% RM6.39, PETGAS +3.39%
RM22.56, PBBANK +0.76% RM18.44, PCHEM +2.12% RM5.78, MAYBANK +0.73% RM9.59, BAT
+2.74% RM1.86, GENTING -4.31% RM9.09, TENAGA -0.69% RM14.36.
3) DBT : BJAUTO 62mil @ RM3.20 (7.67% PUC @ 4.8%
discount, Sale by BJCORP), JAG 9.5mil @ RM0.21, TEOSENG 4.85mil @ RM2.10 (2.42%
PUC).
4) Situational:-
MMC -2.45% RM2.38/ NCB
+7.72% RM2.51 - MMC Corp Bhd is believed to be in talks with MISC Bhd to
buy the latter's 15.7% equity stake in loss-making NCB Holdings Bhd. The
negotiation is already at advanced level, and a deal is expected to be seales
soon. The divestment is part of MISC's strategy to hive off noncore and
non-performing assets.
SILKHLD -16.92% RM0.54 - IJM announced that the Group and
SILK Holdings Bhd have mutually agreed not to proceed with the RM395.0m
acquisition of the latter's highway, Sistem Lingkaran-Lebuhraya Kajang Sdn Bhd.
This is after the third time both IJM and SILK had extended the conditional
share sale agreement. SILK Holdings shall within 7 days from today refund IJM
the deposit together with all interest accrued thereon.
5) PERDANA : 9mths 09/14
Rev+37% RM 269.7m Net+83% RM27m EPS 9.92s Div 2s
Results
in line with cons FY RM96.4m, surprise with div.
For 9 months, the much improved revenue & net were
mainly due to higher vessel utilization and increase in the number of vessels.
The average vessel utilization has improved from 78% in the previous quarter to
93% currently. Qoq, revenue +6% while PBT+15%, improvement in line with
improvement in vessel utilization in the current quarter. The group's fleet,
with an average age of 4.2 years old, will continue to provide the longer term
charter opportunities and stability. Currently, group has long term charters OB
of cRM1.1b up to year 2019, and expects it's offshore marine business to
continue to remain stable. Group also surprised with a 2s dividend; We continue
to like Perdana, more so after the recent retracement in price. It stands out
amongst its peers in the O&G sector, given its good earnings visibility and
growth despite concerns over the collapse of crude oil prices. Group is
relatively insulated, considering the bulk of earnings stem from locked in long
term contracts & it owns a strategic and valuable fleet of young OSVs
comprising of mainly larger capacity AHTS vessels, and brownfield related work
barges and work boats ( where supply of such assets is limited, and demand
remains strong). Its superior fleet sets it apart from its OSV peers, which are
concentrated in the smaller capacity AHTS space - Buy.
6) Market : Technical indicators suggest that the bullish
sentiment could continue in the near term, but we expect upside to be capped as
we head into the final leg of the lacklustre earnings season so far. Market
expected to remain cautious and trade largely sideways between 1828-1848 points
in the near term.
