FBMKLCI
1532.14 -42.53pts
(-2.70%) Volume 2.580b Value RM 2.495b
1) The KLCI closed at its day low plummeting 42pts
(-2.7%) today dragged by SIME -7.75%, CIMB -6.66%, MAYBANK -3.145, PBBANK
-2.37% as the U.S market futures slipped 330pts today following Friday's first
venture into bear territory. Region bourses were mostly lower as SHCOMP fell
-8.49%, HSI -5.17%, ASX -4.09%, NIKKEI -4.61%, STI -3.93 all fell into the red
as investors retreated to the sidelines. Broad market faced persistent selling
pressure as CONSTRUCTION -3.83 % index
lost the most grounds weighed by GAMUDA -5.17%, IJM -1.47%, MITRA -12.06%.
Market breadth was negative as losers tower over gainers by 940 : 100. Futures
closed at 1511.5pts (21pts discount).
2) Heavyweights :
SIME -7.75% RM7.02, CIMB -6.66% RM4.62, MAYBANK -3.14% RM8.32, PBBANK -2.37%
RM17.28, GENTING -6.25% RM6.60, PCHEM -3.58% RM5.38, SKPETRO -8.58% RM1.49,
TENAGA -1.14% RM10.36.
3) DBT: APPASIA 13.5mil @ RM0.135, KENANGA 12.233mil @
RM0.60, SGB 7.66mil @ RM0.66 (7.33% PUC), YINSON 2.32m @ RM2.60 (4% premium).
4) Situational:-
HOHUP -6.25% RM0.825 - Ho Hup Construction Co Bhd has
bought a 70.0% stake in IntactCorporate Approach Sdn Bhd (ICA) from I4G
Intelliganz Sdn Bhd for RM20.0m. ICA has the rights over 429.0 acres of
leasehold land in Kulai, Johor, after it had struck a deal in July with YPJ
Plantations Sdn Bhd to buy the land for RM107.3m, where it would be transferred
progressively to ICA in over five years.
5) UTD PLANT
1H June 2015
Tover -4% RM489.6m Net -2%
RM130.8m EPS 63sen
In line
with cons(f) RM258m
Plantation segment recorded an increase in profit before
tax by 2.5% to RM162.6 million in the current period from RM158.7 million in the
corresponding period. This was achieved despite CPO and PK prices being 14.3% and 10.2% lower than in
the same period. The average selling
prices of CPO and PK achieved for the period were RM2131/MT and RM1546/MT
respectively.
The increase in profit before tax in the current period
was mainly due to the recognition of the nonrecurring gain of RM9.9 million
from land acquisition by the government authorities in relation to the new West Coast Highway. The higher profit was also due to higher
production as well as lower cost of production
in the current period as compared to the corresponding period. CPO, PK and coconuts production
increased by 11.3%, 8.9% and 19.1% respectively whereas the costs of
production were lower by 8.5%, 9.1% and 2.7% respectively in the current period
when compared with the corresponding period.
The profit before tax of the refinery suffered a 19.2%
drop in the current period from the corresponding period mainly due to slower
sales as the result of the increasing competition from local/Indonesian refiners
and fair valuation of forward foreign exchange hedging position. However, a
major portion of this provision is expected to be reversed within the current
year when receivables in foreign currency are received.
Fairly valued at 21x current earnings and despite as
official announcement that the world would experience an El Nino during 2nd
half of 2015 and maybe into 1st half 2016,
farmers in both India and South East Asia have so far not experienced a
severe drought apart from dry weather in
a few areas. Hence lower prices could continue to persist.
6) Market - Sell down in KLCI likely to continue to
follow the global capitulation on the back of weaker Chinese economic data and
will continue to persist until more measures are thrown in to try and stem this
slide. Next key support level is the 1503pts level where we last traded in
2011.
