FBMKLCI
1778.16 -11.57pts
(-0.65%) Volume 2.505b Value RM2.239b
1)The
KLCI fell 0.6% following the weaker US market on concerns of an earlier than
expected rate hike in US. Regional bourses were negative as HSI -0.75% &
SHCOMP 0.17% fell after economic data disappointed, STI -0.55%, ASX -0.53%
while the NIKKEI +0.31% bucked the global trend amid weaker Yen. The local
market was also negative today as selected heavyweights dragged by the
FINANCE-1.23% namely, MAYBANK -1.57%, CIMB -2.52%, PBBANK -0.97%. Market
breadth was negative today as losers outpaced gainers by 523:321. Futures
closed at 1773 (5 pts discount),
2)
Heavyweights : CIMB +2.52% RM5.80, MAYBANK -1.51% RM9.09, AXIATA -1.82% RM6.98,
PBBANK -0.97% RM18.20, GENTING -1.92% RM8.14, PCHEM -1.16% RM5.09, DIGI +1.45%
RM6.27, SIME +0.87% RM 9.25.
3)
DBT: PUC 42.8mil @ RM0.14 (4.02% PUC), JAG 8.8mil @ RM0.16, KNM 8mil @ RM0.70,
SNTORIA 1.7mil @ RM 1.00.
4)
Situational:-
SUNSURIA
+2.54% RM1.61 - Datuk Ter Leong Yap, the major shareholder of Sunsuria Bhd, is
injecting his private property assets of over 440 acres worth RM350.0m and
which comes with a gross development value of RM11.0b into Sunsuria. Out of the
proceeds, Ter will be reinvesting some to subscribe for 102.0m new shares in
Sunsuria at an issue price of 98.0 sen, which will increase his stake to some 58.0%
from 51.1% currently. (98 sen is the theoretical ex-rights price of
Sunsuria shares).Ter is mainly injecting shares of Sunsuria Gateway Sdn Bhd,
Sunsuria Medini Sdn Bhd and Rentak Nusantara Sdn Bhd into Sunsuria.
5)
SPSetia
1Q
01/2015 Tover +28.3% RM926m Net +4.7%
RM101.3m 4sen
31% below cons(f) RM587m
Revenue
from property development activities increased by 22%, however PBT decreased by
3%. The increase in revenue was mainly contributed from higher revenue
recognition as a result of increase in the progress of development works. Lower
earnings however due to i) Mismatch between initial expenses incurred which
were charged to profit or loss and revenue recognition for projects in the
United Kingdom and Australia as revenue is recognised at a point in time when
the construction of the property is completed and handed over to the customer ,
ii) Higher selling and marketing expenses were incurred for the global launch
of Battersea Power Station Phase 3A; and Early recognition of the Goods and
Services Tax financial impact of RM22.7 million in the current quarter.
Construction
revenue was mainly derived from (a) a concession asset in Penang undertaken in
exchange for development rights in Penang. (b) Jabatan Keretapi Negeri Sabah
building in exchange for a land in Sabah for the Aeropod project; and (c)
Kompleks Insititut Penyelidikan Kesihatan Bersepadu n Setia Alam undertaken
pursuant to a Privatisation Agreement with the Ministry of Health, in exchange
for a land in Bangsar for the Setia Federal Hill project. Profits however
remain insignificant at RM3m.
As
at 28 February 2015, total Group sales for the first four months of the current
financial year totaled RM1.2 billion. The Group’s unbilled sales totaled
RM11.5. The sector outlook remains challenging with the implementation of GST
this year but valuations remain fair at RM13.8x PE current with the added
possible M&A story. Trading Buy below RM3.30.
6)
Market – General uncertainties continue to prevail will likely see current
downward drifting pattern on the KLCI continue for the balance of the week.
