FBMKLCI
1582.85pts -6.31pts (-0.40%) Volume 1.684b Value RM 1.530b
1) The KLCI slipped 6pts today inline with the weaker US
market as investors weighed the mixed jobs data against Fed's decision to rate
hike in Sept. Region was mostly lower led by SHCOMP on renewed concerns about
China's economy, HSI -1.23%, , HSCEI -0.72%, ASX -0.20%, STI -0.40% as Asian
currencies decline ahead of the possible US interest rate hikes. CONSTRUCTION
index lost the most grounds today led by GAMUDA -3.32%, IJM -1.28%, KEURO
-5.885 while the TECH +1.35% index outperformed carried by UNISEM +7.86%,
GHLSYS +3.70, INARI +0.61% amid the weaker RM (RM4.3343). Market breadth was
negative as losers beat gainers by 401 : 330. Futures closed at 1559 (23pts
discount).
2) Heavyweights : SIME -2.38% RM7.37, TENAGA -0.72%
RM11.00, AXIATA -0.84% RM5.86, SKPETRO -2.85% RM1.70, PBBANK +0.56% RM17.78,
PCHEM +1.49% RM6.10, GENTING +1.44% RM7.01.
3) DBT: UTOPIA 8.5mil @ RM0.035, CWORKS 5mil @ RM0.26
4) Situational:-
MYEG +0.77% RM2.60 - MY E.G. Services Bhd has been
appointed as of the companies to register illegal foreign workers in the
country. The company said that it was part of the consortium which received an
appointment letter from the Immigration Department to undertake the
registration. The project will be an extension of the scope of service provided
by the Company to the Immigration Department.
5) GAB : announced that on 3 September 2015, the Company
received bills of demand dated 28 August 2015 from the Royal Malaysian Customs
of Federal Territory of Kuala Lumpur ("Customs") demanding payment of
additional excise duties and sales tax, totaling RM56.3m ( RM34.2m claimed
under the Excise Act 1976, for the period of 28 August 2012 to 31 October 2013,
RM22.1m claimed under the Sales Tax Act 1972, for the period of 1 July 2012 to
31 October 2013). As reported previously, Customs had imposed a new method of
valuation for excise duty which came into effect on 1 November 2013. The
abovementioned bills of demand are based on historic claims for excise and
sales tax for the aforesaid periods. GAB's position is that all excise duties and
sales tax for those periods had been paid based on valuations previously
assessed and approved by Customs. It maintains its previous position that the
valuation method implemented on 1 November 2013 is not in line with
internationally applied rules of valuation and that a retrospective application
is unjustifiable. Group does not admit liability on the bills of demand made by
Customs and will take appropriate measures to address this matter - Mildly
negative on news. However post selldown, yield appears attractive. We expect
group to continue paying >90% of its net profit to shareholders, translating
to yields for FY16-18 of c5.5%, which is higher than most large-cap consumer
stocks. We continue to like GAB for its market-leading position in the local
Malt Liquor Market, while the strategy of focusing on premium segment by
embarking on aggressive marketing activities will help to sustain earnings
growth. The stock currently trades at 17.5x FY06/16, below its 5-year average
PE of 19.5x.
6) Market - The index is likely to enter into
consolidation mode this week following the continued weakness in MYR and
concerns over the 1MDB saga.
With the lack of positive catalysts, the index to likely
to trade between 1560-1620 points, but with downside bias. Further weakening of
the MYR could potentially trigger another wave of foreign capital outflows as
well as market de-rating.
