Wednesday, December 10, 2014

Market Roundup | 8 December 2014

FBMKLCI   1740.84   -8.53pts   (-0.49%)     Volume  1.245b   Value 1.524b
 
1) The KLCI continue to slide led by the weakening ringgit after the USD scaled higher following a set of positive US payroll data released on Friday, the US market closed at record levels for a 7th week of gains following the positive data. In regional markets, bourses were generally stronger led by the SHCOMP +2.81% breaching above the 3,000 resistance level shrugging off the weaker trade data, the HSI +0.19% and ASX +0.70% also rose today following the stronger overall sentiment in the region. In the local scene, PLANTATION index -1.25% lost the most ground weighed by heavyweights IOICORP -2.52%, IJMPLNT -4.85% RM3.33, KLK -0.64% RM21.70. Market breadth was negative today as losers beat gainers by 258 : 539. Futures closed at 1736.5 (4pts discount).
 
2) Heavyweights : SIME -0.10% RM9.20, AXIATA -2.06% RM6.65, PCHEM -4.28% RM5.14, MAXIS -2.81% RM6.55, IOICORP -2.52% RM4.63, TENAGA +1.91% RM13.86, PETGAS +4.26% RM21.98, PETDAG 17.62+4.881%.
 
3) DBT : SEG 5mil @ RM1.40, KANGER 3.8mil @ RM0.42, JAKS 2.6mil @ RM0.50
 
4) Situational:-
SKPETRO  +0.39% RM2.52 - SapuraKencana Petroleum said that its units have won RM1.6b worth of contracts. SapuraKencana said its fabrication, hook-up and commissioning division has bagged three contracts worth a combined value of RM710.0m, while its offshore construction and subsea services unit has been awarded jobs worth a combined RM520.0m. As for the drilling division, they have received two contracts (one contract award and one contract extension) for the provision of offshore drilling rigs and services with a combined value of about RM350.0m.
 
5) BAuto
1H 10/2014   Tover +43% RM1016m   Net +111% RM113.6m    EPS 14sen
        6.5% above cons(f) RM213.2m
 
The sales volume growth in Malaysia was mainly driven by CX-5 (CKD and CBU) models, one of the top seller in the C-SUV (sports utility vehicle) segment, as well as other SKYACTIV models like Mazda3 and Biante.
In the Philippines, Mazda2 and Mazda3 models continue to perform well and contributed significantly to its sales volume growth.
Group revenue growth in the 2Q slightly affected because of the contract assembler's paint shop shutdown in October 2014 due to upgrading works. 
quarter.
Improved gross profit margin was mainly attributable to favourable sales mix and a weaker Japanese Yen against Ringgit Malaysia.
 
A more challenging 2H is expected with the implementation of GST in April 2015 but the group can look forward to the impending launch of the all new Mazda2 SKYACTIV and locally assembled Mazda3 SKYACTIV models in Malaysia.
+ve On track to deliver valuation multiples of 12x PE currently with
+exciting prospects from its acquisition of 20% Inokom Corp for future
+growth into the region. Hold
 
6) Market - The KLSE will continue to underperform given its domestic economic problems arising from its dependency on oil prices and upcoming introduction of GST in April 2015.