Thursday, November 6, 2014

Market Roundup | 5 November 2014

 FBMKLCI   1839.29   -8.07pts   (-0.44%)     Volume  2.265b   Value 2.019b
 
1) The local CI dipped today following the weaker US market as the oil prices continue to trend downwards for the 2nd day running suppressing energy stocks. In the regional market, bourses were slightly lower following the SHCOMP-0.47% which broke its 7 day winning streak on hefty valuations, HSI -0.63% too lost grounds today weighed by casino and financial shares; In the local scene, TECHNOLOGY -1.17% index lost the most grounds dragged by D&O -8.33%, JCY -1.73%, GTORNIC -1.51%, MPI -1.31%, CENSOF -2.47% today as profit taking continue to take a toll on the broad market. Market breadth was negative with losers beating gainers by 576 : 251. Futures closed at 1846 (7 pts premium).
  
2) Heavyweights : PBBANK- 1.08% RM18.26, TENAGA -1.32% RM13.46, SKPETRO -3.97% RM3.14, AMBANK -1.48% RM6.63, MAYBANK -0.41% RM9.66, CIMB +0.94% RM6.41, MISC +2.10% RM7.27, KLK +1.50% RM22.90
  
3) DBT : SUNWAY 150.666mil @ RM3.20 (8.72% PUC), CHINWEL 7.935mil @ RM1.5630 (2.91% PUC @ 4.7% discount), YINSON 2mil @ RM2.74 (2.5% discount)
 
4) Situational:-
 
FAJAR +1.08% RM0.465 - Fajarbaru Builder Group Bhd has won a RM45.1m contract for the construction of the Kuantan Port City link road from the East Coast Economic Region Development Council. The contract is for the main access road, primary infrastructure and utilities.
  
5)PERISAI
 
3Q 9/2014       Tover -33% RM66.4m             Net RM0.2m
 
                                    Cons(f) RM33.6m
 
Despite the new build jack-up drilling rig, Perisai Pacific 101 ("PP 101") commencing drilling operations in August 2014, total revenue generated for the period ended 30 September 2014 was lower mainly due to the absence of charter for the Mobile Offshore Production Unit, Rubicone. (The first jack up drilling rig of Perisai, Perisai Pacific 101 commenced its 3-year contractual deployment in early August 2014).
 
Earnings were also impacted by higher finance cost (including MTN interest of RM5.12million). The amount of decrease was however mitigated by the share of contributions from the results of the joint ventures from the Floating Production, Storage and Offloading unit (FPSO), Perisai Kamelia and associates and the gain on disposal of two cold-stacked vessels as reflected in other income.
 
 The result from SJR Marine which owns the Enterprise 3 was reflected under profit from discontinued operation prior to its disposal. Subsequent to its 49% equity interest disposal on 26 December 2013, the result of the remaining 51% equity interest was captured under the caption of share of results of joint ventures.
  
Perisai is continuing to explore various opportunities for its Derrick Pipe Lay Barge, Enterprise 3 and MOPU.
  
Stock is likely to remain under selling pressure as they continue to try and secure contracts for two of their large assets in challenging conditions for the sector.
  
6) Market - The prevailing cautious sentiment will continue to drive investors side lined and back into defensive names such telcos and high yielding sectors such as gaming and media for the time being.