FBMKLCI
1661.89pts +1.83pts
(+0.11%) Volume 2.965b Value RM1.956b
1) The KLCI traded in a tight 5pts band before closing in
positive territory as the US market halted its rally from the previous day as
weaker oil prices raised concerns. Regions were mostly stronger as fresh easing
steps by the Chinese central bank boosted sentiments, HSI +1.13%, SHCOMP
+0.37%, HSCEI +1.07%, ASX +0.26%, NIKKEI +0.10%. TECHNOLOGY +1.68% index gained
the most grounds as JCY +5.32% , INARI +2.22%, MPI +3.31% advanced. Market
breadth was neutral with even gainers and losers at 441 : 426. Market futures
closed at 1656.5pts (10pts discount).
2) Heavyweights : MAYBANK +0.97% RM8.32, TENAGA +0.76%
RM13.12, PBBANK +0.33% RM18.10, GENM +1.42% RM4.26, GENTING +0.84% RM7.18, IHH
-1.50% RM6.56, YTL -2.00% RM1.47, AMBANK -1.50% RM4.59.
3) DBT : TASCO 4.379mil @ RM1.75 (2.19% PUC), TALIWRK
3.6mil @ RM1.45, JAKS 1.5mil @ RM1.15.
4) Situational:-
TCHONG -5.13%
RM2.77 - Tan Chong Motor Holdings Bhd's unit, Tan Chong Motor (Myanmar) Co Ltd
(TCM Myanmar), has entered into a distribution agreement with Nissan Motor Co
Ltd (NML). Tan Chong said NML has granted the sole and exclusive rights to TCM
Myanmar to sell and distribute Nissan vehicles manufactured and/or assembled by
TCM Myanmar. The agreement includes providing after-sales services on the vehicles
in the republic.
5) QL RESOURCES
6mths 09/15 YOY Rev+2.6%
RM1.34b Net RM123.4m EPS
7.7s Div 7.0s
Results inline, making up 57% of cons RM215.5m
Marine Product Manufacturing (MPM) current quarter sales
increased 20% against corresponding quarter mainly due to higher export
contribution of fishmeal, surimi and surimi-based products as a consequence of
weaker Ringgit. MPM's current quarter sales increased 11% against preceding
quarter mainly due to seasonal and export factor.
Palm Oil Activities (POA) current quarter sales decreased
7% against corresponding quarter mainly due to lower FFB processed and CPO
price (RM2,018 vs RM2,205 corresponding qtr). POA's current quarter sales
decreased 14% against preceding quarter mainly due to lower CPO price and lower
FFB processed. Earnings increased 8% due to higher contribution from Associate
(Boilermech Bhd).
Integrated Livestock Farming (ILF)s current quarter sales
only increased marginally against corresponding quarter, even though volume of
feed raw material traded was higher.
The marginal increase is due to impact of weaker Ringgit
on imported feed cost being mitigated by drop in international feed raw material
prices. However, earnings decreased 5% due to lower poultry farm produce prices
in Peninsular Malaysia. However, earnings increased significantly against
preceding quarter mainly due to overall improvement of egg price in Peninsular
Malaysia, Indonesia and Vietnam.
Group’s resilient business model and defensive earnings
warrant the group to be trading at a premium multiple of 23.8x for FY16. Also
with favourable egg prices as well as lower raw material cost continue to
buoyed the group’s earnings mitigating the slower POA division and impact of
the weakening Ringgit. Moving forward growth will come from more capacity
expansion of its strongest growth segment, the marine product manufacturing
& new aqua businesses. Defensive BUY.
6) Market: Bursa will likely trade with a positive bias
next week as foreign flows will be more encouraging with the US December rate
hike been discounted coupled with the expected month-end support.