FBMKLCI
1818.68 +9.29pts (+0.51%) Volume 2.178b Value 2.116b
1) The KLCI closed at its day high in tandem with the
stronger global market, backed by higher European stocks which traded near 7
year highs as Greece creditors review the list of its debt reduction policies.
Regionally, most bourses were higher with NIKKEI +0.74%, ASX +0.32%, KOSPI
+0.39% and SET +0.48% whilst HSI -0.35% retraced marginally before the Fed's
chairman's speech tonight. CONSTRUCTION +1.10% outperformed, led by IJM +1.99%,
GAMUDA +1.53%, HSL +2.94%, PRTASCO +2.41% and JAKS +4.27%. Market breadth was
neutral with gainers edging losers by 432 : 409. Futures closed at 1813.5 (5pts
discount).
2) Heavyweights : MISC +6.20% RM8.05, GENTING +3.08%
RM9.03, PETGAS +2.04% RM23.00, TENAGA +0.70% RM14.26, IHH +1.89% RM5.39, CIMB
+0.66% RM6.02, TM +1.030% RM6.99, MAXIS -1.94% RM7.06.
3) DBT: HAPSENG 189.5mil @ RM3.70 (8.487% PUC), ECOFIRST
8.5mil @ RM0.32 (1.16% PUC), BORNOIL 7mil @ RM0.8514 (1.93% PUC).
4) Situational:-
MISC +6.20% RM8.05 - Energy shipping company MISC Bhd has
entered into a novation agreement with its controlling shareholder, Petroliam
Nasional Bhd (Petronas), and South Korean shipbuilder Hyundai Heavy Industries
Co Ltd to build five liquefied natural gas carriers (LNGCs). The contract is
worth USD1.1b (RM4b). The novation agreement also includes a 15-year
time-charter party (TCP) with five-year extension option for MISC involving the
respective LNGCs upon delivery from September 2016 to December 2017. The
transaction will involve an expenditure of about USD1.1b. Trading BUY
5) GTRONICS : FY12/14 Rev+10% RM355m Net+12% RM64.4m EPS
22.9 Div 22s
Results in
line with cons RM64.3m, Div in line @ 22s
For the year, the Malaysian & Singapore segments
recorded healthy sales and net profit improvements over the previous year. The
higher net achieved was mainly due to higher volume loadings from most of the
group's customers, better economy of scale coupled with productivity
improvement /cost control programme carried out in the group. Qoq, revenue was
-1.3% while Net was -12.5%, mainly due to inventory adjustments in the supply
chain and the shut down of manufacturing hubs / customer facilities especially
in December 2014. This was offset by increase in revenue from the Singapore
segment which increased 21%. Ahead, group will continue to focus on escalating
up the value chain and riding on the R&D initiatives in new product design
and development, improving the operational efficiencies & implementing cost
reduction measures.
Segment wise, Sensor is set to be the fastest growing
division in FY15 driven by new sensor module for wearables while New product
transfers will underpin growth for quartz timing devices and LED/SSL divisions.
FY15 capex is budgeted at RM40-45m, the bulk of which will be for the sensor
division. We continue to like the stock for its earnings growth prospects,
decent 5% dividend yield and high ROE of c 28%; Accumulate.
6) Market : The KLCI's underlying trend remained up and
supported by all the key SMAs. Index is likely to consolidate within the
1,780-1,830 points range in the near term. Market direction may take cue from
upcoming corporate earnings.