Wednesday, June 24, 2015

Market Roundup | 23 June 2015


 FBMKLCI   1726.86  -5.90 (-0.34%)      Volume 1.732b   Value RM1.680b 
1)  The KLCI saw sideways trading before closing at low of the day despite the stronger Wallstreet overnight amid Greek optimism. Region bourses were mostly positive led by SHCOMP +2.19% which erased earlier losses to lead in gains following better flash PMI index, followed by NIKKEI +1.87%, ASX +1.32%, HSI +0.93%, STI +0.75%. Local stocks fell as PLANTATION index led in losses weighed by heavyweights KLK -1.84%, IOICORP -0.49%, GENP -1.00%. Penny stocks recaptured some interest as KNM +10.18%, PERISAI +5.49%, FRONTKN -1.78%, DESTINI +2.32% were amongst the most active. Market breadth was neutral as losers were level with gainers at 407 : 397. Futures closed at 1720.5 (6pts discount).
 
2) Heavyweights : MAYBANK -0.64% RM9.28, CIMB -0.89% RM5.55, KLK -1.84% RM21.34,SKPETRO -1.62% RM2.42, TENAGA -0.30% RM13.06, GENTING -0.72% RM8.18, PPB +1.44% RM15.00, YTL -1.29% RM1.53.
 
3) DBT:  FRONTKN 290.991mil @ RM 0.188 (27.623% PUC @ 32% discount), SALCON 8.522mil @ RM0.81 (1.25% PUC), YINSON 1.92mil @ RM3.10.  
 
4) Situational:-
HANDAL +4.34% RM0.36 - Handal Resources Bhd and independent oil and gas company MEO Australia Ltd have terminated their partnership formed to pursue a risk service contract agreement with Petroliam Nasional Bhd. The offshore crane fabricator told Bursa Malaysia that both parties  decided not to pursue the collaboration, entered into in July 2013, due to the current local market condition and Petronas’ deferment of RSC for marginal fields.
 
5) Prolexus
9mths Apr 2015    Tover +12% RM230.3m   Net +12.5% RM14.4m   EPS 13.4sen
 
Revenue of the Group is higher when compared  YOY is attributable to higher revenue in apparel and
advertising division.  Earnings are similarly higher due to the same reasons plus a higher fair value gain on derivative financial instruments. During the 3rd quarter, the Group recognised a gain of RM 2.23m arising from fair value changes on derivative financial instruments.  
+ve as the company continues to ride of the strong apparel sales of Nike and more recently UA, however valuations are looking fair at current levels and further upside rerating may only come should the company be able to turn in a stronger 4th qtr. Hold
 
 
6) Market – We continue to expect the KLCI to be well supported around the 1730pts levels ahead of 1H closing.