Monday, November 3, 2014

Market Roundup | 31 October 2014

FBMKLCI   1855.15   +12.37pts   (+0.67%)     Volume  2.752b   Value 2.401b
 
1)  The KLCI closed at its day high extending its winning streak to 7 days after month-end window dressing boosted TENAGA, DIGI, PETGAS, SIME at the end of the session. In the regional market, bourses were stronger today partially due to the better U.S market overnight as well as the vigorously robust NIKKEI which recorded a +4.5% gain today following unexpected move by the BOJ to  annual asset buying stimulus to 80trillion yen from 60-70trillion, HSI +1.25%, SHCOMP +1.22%, ASX +0.92% all closed higher. In the local scene, TECHNOLOGY  +1.85% index and INDUSTRIAL +1.59% index were the 2 outstanding sectors amongst the rest from strong gains by GTRONIC +3.90%, MPI +3.12%, CENSOF +10.81% & PETGAS +2.18%, SIME +1.25%, MISC +1.93% respectively. Market breath was positive as gainers continue to trump losers by 662 : 248. Futures closed at 1858 (3pts premium).
 
2) Heavyweights : TENAGA +1.98% RM13.36, DIGI +2.82% RM6.19, PETGAS +2.18% RM22.48S, SIME +1.25% RM9.68, GENM +2.62% RM4.30, GENTING +0.93% RM9.75, MISC +1.93% RM6.86, IOICORP+1.03% RM4.89.
 
3) DBT : WPRTS 151.528mil @ RM2.90 (4.73% PUC @ 3.4% discount, placement by Khazanah), HUBLINE 7.45mil @ RM0.045, TITIJYA 3.6mil @ RM2.134 ( 1.01% PUC @ 9.6% discount), YINSON 3mil @ RM2.72 (0.29% PUC @ 8.4% discount).
 
4) Situational:-
FABER  +6.23% RM3.24 - Faber Group Bhd is poised to become one of the largest asset development and management players in the region after completing its RM1.5b merger with Opus Group Bhd and Projek Penyelenggaraan Lebuhraya Bhd (Propel). The company said the completion marked a new chapter for the group as it now had the full capability to undertake the entire asset life cycle services, from asset development to asset management.
 
5) TENAGA
 
4Q 8/2014   Tover+15.2% RM42.8bn     Net+20.7% RM6.47bn    EPS 114.59sen  Div 29sen
 
         Core earnings of RM5.39bn, 3.6% above cons(f) RM5.2bn
 
Core net profit of RM5.39bn was recorded after excluding writeback of provisions of RM350m, lower corporate taxes which benefited RM240m and translation gains of RM450m. Core net profit was up 10.2% yoy. Revenue was up 15.2% mainly due to tariff hike while electricity demand rose at a slower pace of 2.5% due to lower consumption by steel mills. EBITDA margins recovered in the 4Q to 30.2% mainly due to lower LNG consumption. This saw FY14 EBITDA margins recovering to 28.2% matching previous year margin. Average coal price consumed was USD75.4/MT compared to USD83.6/MT in FY13.
 
Foreign shareholding stood at 24.61% in Aug after falling from a high of 27.84% in Dec 2013.
 
Moving forward, electricity demand growth is expected to be 5-6% inline with projected growth announced in budget. Hold
 
6) Market: regional market sentiment has been buoyed by surprise increase in asset purchasing from BOJ. Expect sentiment to continue next week with key BNM meeting (4th Nov) and upcoming earnings season to dictate market direction.