FBMKLCI
1582.44 +2.84pts (+0.18%) Volume 1.894b Value RM 1.781b
1) The KLCI trended higher for a 2nd day after the
stronger US market shrugged off the mixed economic data ahead of the Fed
minutes tonight. Regional bourses were mixed as the SHCOMP rebounded from -5%
as investors anticipate more intervention from the Chinese Govt, ASX gained
+1.45%, while the NIKKEI -1.61%, HSI -1.31%, HSCEI -1.19%, STI -0.21%. Broad
market regained buying interest today with the TECHNOLOGY +3.62% index leading
in gains for a 2nd day as UNISEM +10.05%, MPI +7.86%, INARI +2.64% outperformed.
Market breadth was positive today with gainers edging losers by 557 : 259.
Futures closed at 1572.5 (10pts discount).
2) Heavyweights : CIMB +1.21% RM5.00, GENM +2.30% RM3.99,
GENTING +1.69% RM7.22, TM +1.78% RM6.29, MAXIS +0.93% RM6.45, MAYBANK +0.35%
RM8.46, PCHEM -1.54% RM5.74, IHH -1.59% RM5.56.
3) DBT: MFLOUR 16mil @ RM1.20 (2.97% PUC), JTIASA 1.9mil
@ RM1.00.
4) Situational:-
WASEONG +2.45% RM1.25 - Wah Seong Corp Bhd has bagged a
RM188.96 million subcontract from Penta-Ocean Construction Co Ltd for the
supply and delivery of coated steel pipe piles for the Pengerang Deepwater
Petroleum Terminal Project in Johor.
5) EVERGREEN
1H June 2015 Tover
+8% RM492.1m Net RM43.9m EPS 8.6sen
8% above
cons(f) RM80.9m
YTD, the Group's revenue has increased by 8.1% due to higher sales volume and impact
from the strengthening of USD currency. Earnings were RM44m compared to a loss before tax of RM24.46 million recorded
in the corresponding period last year. The increase in profit was mainly
contributed by higher revenue, the lower cost of log and glue and higher
operational efficiency and synergistic cost savings derived from the group's
recent restructuring of certain operational facilities.
With steady global MDF demand and the current
appreciation of the US dollar for which most of the exports of their products
are priced the company is expected to continue to fair well however with the
valuation compression experience in the market as the result of the recent sell
off, current valuation appears fair at forward yr 9x PE.
6) Market - As per our expectations the market continued
its technical recovery today. Short term target upside for this technical
remains in the region of 1630-1650pts levels for the KLCI. Underperforming
recent favs that could join the rally include, Ikmas Jaya, Scicom, Mieco,
Ecopile, Jaks.
