Thursday, November 27, 2014

Market Roundup | 26 November 2014


FBMKLCI   1842.17pts   +3.61pts   (+0.20%)     Volume  1.733b   Value 1.469b

 

 

 

1) The KLCI extended its winning streak to a 3rd day despite the weaker U.S market and the weakening oil prices just before the OPEC meeting tomorrow. In the regional market, bourses were stronger led by financial stocks in the SHCOMP +1.43% and HSI +1.12% after these companies reported a surge in brokerages and benefitting from the PBOC's interest rate cut last Friday, ASX +1.15% was inline with the regional gaining 1.15% boosted by mining heavyweights. In the local scene, CONSTRUCTION +0.99% index gained the most grounds today led by GAMUDA +1.53%, IJM +1.64%, MUHIBBAH +4.66% today. Market breadth however, was negative today as loser beat gainers by 452 : 321. Futures closed at 1844 (2 pts premium).

 

 

 

2) Heavyweights : TENAGA +1.11% RM14.52, PBBANK +0.86% RM18.60, MAYBANK +0.83% RM9.67, GENM +2.18% RM4.21, BAT +2.67% RM71.52, GENTING +1.21% RM9.16%, TM -3.46% RM7.24, MAXIS -0.14% RM7.05.

 

 

 

3) DBT : SUNWAY 14mil @ RM3.36, JTIASA 3.695mil @ RM1.93, FABER 3.5mil @ RM2.975 (17.5% premium),

 

 

 

4) Situational:-

 

KKB  -1.21% RM1.63 - KKB Engineering Bhd's unit Harum Bidang Sdn Bhd has bagged a two-year contract worth RM43.9m from CMS Infra Trading Sdn Bhd. KKB Engineering said the contract is for the supply and delivery of concrete-lined mild steel pipes and mechanical couplings. The company added the contract will contribute positively to the company's earnings and net assets for the 2015 and 2016 financial years.

 

 

 

EITA +0.70% RM1.42 - EITA Resources Bhd's unit, EITA Elevator (Malaysia) Sdn Bhd (EEMSB), has bagged a RM79.0m contract from Mass Rapid Transit Corp Sdn Bhd (MRT Corp) to provide escalator and travelator system for the latter's MRT in the Klang Valley. The company said the contract is for the supply, procurement, installation, testing and commissioning of escalator and travelator system for all underground stations under Package ETS-U.

 

 

 

5) Dayang

 

9mth 09/2014    Tover +71% RM635.3m              Net +17% RM147.4m     EPS 17.9sen

 

                                    In line with cons(f) RM198.4m

 

The higher revenue in the current period to date as compared to the corresponding period to date is mainly due to higher revenue from the new hook-up and commissioning contracts.

 

The PAT however grew only 17% due to slightly lower profit margin contribution from work orders performed as compared to the corresponding period. The Group's associate, Perdana Petroleum Berhad, contributed approximately 9.9% to the profit before tax of the group for the current period to date.

 

 

 

The Group has call out contracts estimated at about RM4.2 billion to last at least until 2018 with an outstanding tender book of approximately RM800.0 million

 

Currently trading at a forward PE of 10.5x the lower end of its historical band we recommend a buy with its visible earnings stream for the next few years.

 

 

 

6) Market - Broad market likely to continue to drift listlessly in low volume trading with no immediate catalyst on the horizon. The KLCI will encounter resistance around the 1848pts level with support at 1806pts.