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.