Market Roundup | 26 March 2015

FBMKLCI   1818.42  -0.68pts
(-0.04%)      Volume 2.443b   Value RM1.955b

 

1) The KLCI remained resilient today despite the noticeably weaker US market overnight as investors took profit before the upcoming reporting season. In the regional scene, bourses were inline with the weaker sentiments as the NIKKEI -1.39%, HSI -0.13%, ASX -1.58% closed in the red whilst the SHCOMP +0.58% bucked the trend erasing a portion of yesterday's loss. In the local scene, O&G names such as KNM +8.52% , SKPETRO +3.44%, PERISAI +8.33%, UMWOG +6.07% outperformed amongst the sectors as crude oil px gained yesterday after unrest in Yemen threatened to interrupt supplies. Market breadth was positive with gainers beating losers by 426. 397. Futures closed at 1816 (2pts discount).

 

2) Heavyweights : SKPETRO +3.44% RM2.40, PBBANK +0.21% RM18.60, GENTING +0.57% RM8.75, PCHEM -1.27% RM5.43, GENM -1.19% RM4.12, TENAGA -0.27% RM14.46, IOICORP -0.64% RM4.63, KLK -0.79% RM22.52. 

 

3) DBT:  REACH 47.859mil @ RM0.627 (3.74% PUC), SCOMIES 38.586mil @ RM0.54 (1.64% PUC), BERTAM 5.40mil @ RM0.81 (2.61% PUC), PERDANA 2.5mil @ RM1.08 (13% discount).

 

4) Situational:-

BPURI+5.3% RM0.59 – Company has accepted the letter of award from Jabatan Perkhidmatan Pembetungan, Kementerian Tenaga, Teknologi Hijau Dan Air on 20 March 2015 to undertake the project known as “Pembinaan Loji Rawatan Kumbahan Serantau Bunus, Kuala Lumpur” at contract sum of RM291.16 million. The completion period is 18 months. With the latest award mentioned above, the Group’s unbuilt book order stands at RM2.11 billion as at to date.

 

5) VS Ind

1H 01/2015   Tover +25% RM1bn Net RM53.52m         EPS 26.9c

                              34.7% above Cons(f) RM79.4m

The improved earnings for the current quarter and cumulative quarter was mainly attributable to higher sales and better sales mix contributed by the Malaysian operations and also helped by the stronger USD. Indonesia and China recorded losses of RM700k and RM1.5m respectively. The company ann 1H interim div of 3c bringing 1H payout to 6c. VS medium-term earnings prospects to remain resilient driven its new model coffee brewing machines. Hold despite the phenomenal rise in price over the past 9mths as earnings continue to support and justify its valuations, trading at current year PE 9x and yield of 3.5%

 

6) Market – Geopolitical tensions in the Middle East and frothy developed market valuations could see foreign funds further bargain hunt in emerging markets and the bashed down O&G sector. Our top pick and an emerging market leader in the O&G space remains Yinson ahead of stellar results with the full effect of FOlsen acquisition flowing through and the added timely disposal of asset in 2014.