Market Roundup | 27 November 2015

 FBMKLCI 
1682.59pts   -0.50pts (-0.03%)    Volume
2.408b   Value RM2.061b

1) The KLCI saw choppy trading today before closing marginally lower inline with the weaker region. Bourses were mostly lower dragged by SHCOMP -5.48% after authorities exercised regulatory probes on selective brokerages for alleged violations of trading rules, HSCEI -2.50%, HSI -1.87%, ASX -0.16%, STI -0.89%, NIKKEI -0.30%. Broad market saw an increased profit taking activities today with the INDUSTRIAL -0.77% index losing the most grounds as PCHEM -1.75%, HARTA -1.81%, KOSSAN -0.62%, VS -1.93% slipped. Market breadth was negative as decliners outpaced gainers by 635 : 292. Futures closed at 1678.5pts (5pts discount). Ringgit weakened to RM4.2690 (+0.0499)

2) Heavyweights : IHH -2.13% RM6.42, PCHEM -1.75% RM6.72, MAYBANK -0.47% RM8.44, UMW -3.01% RM8.03, GENTING -0.95% RM7.23, IOICORP +4.80% RM4.36, CIMB +1.11% RM4.55, GENM +1.62% RM4.38.

3) DBT :  OCR 10.2mil @ RM0.50 (4.95% PUC), CHHB 9.09mil @ RM1.133 (3.29% PUC), TROP 5mil @ RM0.95


4) Situational:-

OCK +2.17% RM0.705 - Telecommunications network services provider OCK Group Bhd is in the final stages of getting a contract from Telenor’s Myanmar unit to build and lease over 900 towers in the country. The contract would last for 12 years and all the towers under this phase were expected to be completed next year. Norwegian telecommunications provider Telenor commands a 36% market share in Myanmar, with the other operators in the country being MPT and Ooredoo. The company said in a statement that it had entered into a memorandum of understanding with Telenor Myanmar alongside local partner King Royal Technologies yesterday. BUY.

5) Barakah

9mths              Tover -15% RM425.7m        Net RM4.3m              EPS 0.54sen


Lower than expected numbers largely attributable to the 3Q loss of RM15.4m as it reported a lower revenue by 10.45% and profit before taxation decreased by 382.16% to a loss before taxation in the current quarter ended 30 September 2015 compared with the immediate preceding quarter ended 30 June 2015. The decrease in revenue reported was as a result of the slowdown in the work orders received from both T&I contracts and Pre-commissioning works during the current financial year ended 30 September 2015 as well as outstanding variation and change orders from clients. The loss before taxation reported was attributed to some fixed operation costs which did not decrease in line with the lower revenue generated as well as the sharebased payments of RM1.04 million as a result of the third batch of Employees’ Share Options granted to the Group’s employees on 1 September 2015.

We understand that a significant part of the VOs are recoverable hence a significant claw back in the coming quarters can be expected. Investors with a medium term view should take the weakness in share price as an opportunity to accumulate.

6) Market – Unwinding of small/ mid caps who have enjoyed a significant run in the past quarter ahead of the year end is expected to continue however the CI could rebound on month end closing action possible entry of Value Cap with additional funds anticipated to be injected around this period.