FBMKLCI
1577.41 -5.03pts (-0.32%) Volume 1.786b Value RM 1.765b
1) The KLCI recovered from a 20pts low before closing
just -5pts inline with the weaker US market which retreated after Fed minutes
skewed towards the likeliness of a rate hike in September. Region bourses were
all under pressure following the slump in oil prices overnight as SHCOMP
-3.42%, HSI -1.77%, ASX -1.70%, STI -1.03%, NIKKEI -0.94% all closed decisively
lower. INDUSTRIAL -1.02% index lost the most grounds today weighed by
heavyweights SIME -3.15%, PPB -1.60%, PETGAS -0.47% while the CONSTRUCTION
+0.83% index outperformed boosted by GAMUDA +2.50%, IJM +0.83%, ECONBHD +6.25%.
Market breadth was negative however, with losers leading gainers by 448 : 360.
KLCI futures closed at 1560.5pts (17pts discount).
2) Heavyweights : SIME -3.15% RM7.68, AMBANK -2.83% RM4.80, PBBANK -0.33% RM17.90, GENM
-1.25% RM3.94, PPB -1.60% RM14.76, TENAGA -0.38% RM10.40, TM -0.95% RM6.23,
MAYBANK 1.65% RM8.60.
3) DBT: RSAWIT 20mil @ RM0.50 (1.41% PUC), SKPRES 11mil @
RM1.50 (1.01% PUC), APPASIA 9.853mil @ RM0.224
4) Situational:-
HIBISCS -0.64%
RM0.775 - Hibiscus Petroleum Bhd, through its jointly-controlled entity Lime
Petroleum Norway AS (Lime Norway), has entered into an agreement to acquire a
30.0% stake in a new licence in the North Sea. The company said that Lime
Norway had executed an agreement with
Lundin Norway AS1 for a 30.0% stake in licence PL410 in the North Sea,
in which it expects to drill in 2016. Once completed, Lundin, the operator of
the licence, will have a 52.4% stake in it, while Lime Norway will have 30.0%
and Statoil Petroleum AS2, 17.7%.
5) VITROX : HY 06/15 Rev-18% RM72.2m Net-4% RM19.3m EPS
8.3s
Results
trails, making up only 34% of FY cons RM56.8m
For Q2 YOY, revenue -40%, mainly due to decrease in
revenue from Machine Vision System (MVS) and Electronics Communication System
(ECS). The decrease was mainly attributable to lower demand from existing
customers. PBT fell 34% while PAT was -50%. Lower PAT was mainly due to expiry
of the pioneer status of Vitrox Technologies SB on 31 March 2015. Qoq, revenue
was 17% higher while PBT was +40%. The stronger performance were attributed to
increase in revenue recorded for MCS, Automated Board Inspection ( ABI) and
ECS, due largely to higher demand from customers and the appreciation of the
USD as most of the sales are denominated in USD. Ahead, group to focus on
market expansion activities, customer relationship building and product
innovation to progress the business. We continue to like the group as it
remains a leading automated vision inspection systems and equipment supplier
serving the global semiconductor and electronic packaging industries. The
healthy outlook of equipment spending and semiconductor sales should bode well.
It also has planned capacity expansion - ViTrox Campus 2.0 to cater for the
future growth. Strong balance sheet and healthy cash flow to support its
dividend yield. Also, ViTrox is a net USD exporter with ~80% of group revenue
in USD but only 30% of COGS in USD; Hold.
6)Market : Despite acknowledging that the FBMKLCI is
deeply oversold to offer potential reversal play in the near-term, the
relatively flattish technical indicators suggest a lack of compelling buying
momentum. We reckon that the market will still require fresh catalysts to
inspire investors' confidence. Index hovering just above immediate support of
1575 points, with next support at 1526 points.