FBMKLCI
1764.07 -3.31pts (-0.19%) Volume 1.582b Value RM1.937b
1) The KLCI traded in the green most of the day before
closing -0.19% lower late in the session weighed by selected bluechips CIMB,
PPB, KLK. Region bourses were mostly higher led by tech stocks in the SHCOMP
+2.12% & HSI +0.92% after Govt plans to develop Shanghai into a
technological innovation city centre; HSCEI +2.55% & NIKKEI +0.12% continue
to trend higher on more stimulus hopes. In the local scene, INDUSTRIAL -0.71%
lost the most grounds weighed by PETGAS -1.73%, PPB -2.22%, MISC -0.70%, GAB
-0.27% while the TECHNOLOGY +0.99% index rebounded, UNISEM +2.07%, JCY+2.06%,
GHLSYS +3.63%. Market breadth was positive with gainers edging losers by 484
:318. Futures closed at 1756 (8points discount)
2) Heavyweights : CIMB -2.43% RM5.61, PETGAS -1.73%
RM21.58, PPB -2.22% RM14.94, KLK -1.62% RM21.84, GENTING-0.45% RM8.71, AXIATA
+1.69% RM6.60, TENAGA +0.45% RM13.30, SKPETRO +1.55% RM2.61.
3) DBT: MTRONIC 35mil @ RM0.10 (5.01% PUC), BERTAM 9.9mil
@ RM0.60 (4.78% PUC), SEG 5.5mil @ RM1.50.
4) Situational:-
TROP +0.94% RM1.07 - Tropicana announced that they are
disposing a 2.5 storey building to Glorade for a total consideration of
RM12.0m. The deal is deemed as a related party transaction as certain directors
and major shareholder of Tropicana and a director and major shareholder of
Glorade are connected persons via Inspirasi Tepat Sdn Bhd (ITSB).
TM -0.54% RM7.34 - Telekom Malaysia Bhd (TM) has sealed
an agreement with Symphony Communication of Thailand and Telcotech of Cambodia
to form a consortium to establish the Malaysia-Cambodia-Thailand (MCT)
submarine cable system. The latest intra-regional submarine cable system, which
spans about 1,300 km, is expected to be ready for commercial traffic by
end-2016. It also would provide further access to Indochina countries like
Laos, Myanmar and Vietnam via terrestrial links.
5) QL :FY03/15 Rev+10% RM2.7b, Net+19% RM190.5m EPS
15.27s Div 4.25s
Results in
line with cons RM193m, sales beat by 4%.
For 12 months yoy, higher revenue was seen in all
divisions. Marine product manufacturing (MPM) registered revenue growth of 18%
due to overall higher contribution from Indonesia fishery and fishmeal
operations. Earnings +16% due to the same reasons. Revenue from Palm oil
activities (POA) +4% despite the sharp decrease in CPO price, mainly due to new
sales contribution from Indonesian plantation operations. Earnings +36% due to
lower losses from Indonesian plantation ops & contribution from Boilermech. On it's Integrated livestock farming (ILF),
revenue +8% due to higher volume of feed raw materials traded as well as higher
farm produce prices. Earnings +26% due to improved farm produce prices as well
as reclassification of associate Lay Hong Bhd to AFS Investment; Although we
continue to like QL's healthy fundamentals and unique defensive business model
& that its growth over next the few years remains intact, we believe much
of its growth prospects have been priced in. Valuation appears rich at 22x FY03/16-
Hold.
6) Market : With technical indicators already in the
oversold region, we can expect some bargain hunting and cautious nibbling on
defensive names. Trading range revised downwards to between 1750-1800 points
with slight downside-bias on the lack of fresh catalyst and poor domestic
sentiment.d2d