FBMKLCI
1660.06pts +3.56pts
(+0.21%) Volume 3.425b Value RM2.121b
The KLCI traded in positive territory thruout the day
closing 3pts higher following the stronger US market overnight after the Fed
minutes signalled that the recovery in economy could be strong enough for a
December rate hike. Regions were mostly higher as the HSI rose 1.41%, SHCOMP
1.38%, HSCEI +1.37% buoyed by interest amongst small cap names while the NIKKEI
+1.07%, ASX +2.13%, STI 1.17% also
gained. Small cap & Penny names continue to gain momentum today as INSTACO
+18.86%, EAH +17.39%, GENETEC +15.38% topped the most active list as investors
turned risk on. Market breadth was marginally positive as gainers beat losers
by 501 : 425. Market Futures closed at 1658pts (2pts discount).
2) Heavyweights : MAYBANK +0.73% RM8.24, PETGAS 0.00
RM22.70, PPB +2.20% RM15.74, PBBANK +0.22% RM18.04, CIMB +0.44% RM4.56, PCHEM
+0.45% RM6.60, IOICORP -0.72% RM4.09, UMW -1.67% RM8.21.
3) DBT : INSTACO 20mil @ RM0.28, BAHVEST 8.033mil @
RM0.90 (1.87% PUC), JAKS 7.5mil @ RM1.15 (1.71% PUC), SUPERLN 2.0mil @ RM1.9610.
4) Situational:-
CIMB +0.44% RM4.56 - CIMB Group Holdings Bhd has entered
into a strategic collaboration agreement with leading Philippine Long Distance
Telephone Co’s (PLDT) to push digital financial offerings and solutions in
thePhilippines and across Asean. It said that its unit CIMB Group Sdn Bhd
entered into the agreement with PLDT’s wireless services provider, Smart
Communications Inc and its wholly-owned digital unit Voyager Innovations Inc.
5) MEDIA PRIMA
9mths 09/15 YOY Rev-5.5%
RM1.060b Net RM106m EPS 9.6s
Div 5s
Results inline, making up 73% of cons RM145m
Group performance for the current financial year has been
generally affected by the soft advertising spending and subdued market
sentiment. The Group recorded a drop in revenue by 5% and PAT is at par against
the corresponding period. The performance of the respective platforms for the
period ended 30 September 2015 as compared to the previous financial period is
analysed as follows:
a) Television Network – Revenue and PAT declined by 3%
and 4% respectively as soft adex attributable to external market sentiments
continues to underpin performance in the year. In addition, FTA TV adex has
seen increasing competition from pay TV as well as data-centric and cost
efficient digital advertising avenues.
b) Print Media – Revenue declined by 8% due to lower
advertising and circulation revenue. However, profit after tax increased by 26%
against the corresponding period driven by favourable newsprint cost and
newspaper production efficiencies.
c) Outdoor Media – Increase in revenue by 1% with lower
site rental costs and depreciation charges contributed to a 6% growth in PAT as
compared to the corresponding period.
d) Radio Network – An encouraging third quarter
performance after a slow first half has contributed to a 4% growth in PAT
against the corresponding period despite revenue contracted by 10%.
e) Digital Media – Lower direct and operating expenses
after the business streamlining exercise in the period led to minimisation of
loss after tax by 61% against the corresponding period.
f) Content Creation – Revenue increased by 25% was
contributed by higher content sales to external clients. This increase coupled
with savings in direct cost and overheads led to a growth in PAT exceeding 100%
compared to the corresponding period.
In view of the challenging business environment and
jittery market sentiment, the Group expects the remainder of the year to remain
challenging. Furthermore, the gradual shift in consumer preferences towards
digital media is slowly driving a shift in the adex market despite the existing
dominance of traditional media platforms which remains at the Group’s core.
While PE appears attractive, prospect and growth appears to be subdued. Div
yield of 7.54%. Hold.
6) KLCI remained resilient as it retested the major
resistant (1664pts) level today after a strong recovery in the Ringgit buoyed
sentiments. While traders are enjoying the surge of liquidity amongst smaller
caps/penny names in the market, investors await BNM’s report on the Malaysia
foreign reserves tomorrow. Ringgit strengthened to RM4.3445.
