FBMKLCI
1688.54pts +2.92pts
(+0.17%) Volume 2.183b Value RM 2.169b
1) The KLCI saw choppy trading today but manage to close
higher despite the weaker US market overnight after Fed's Yellen hinted at a
possible December rate hike. Regions were mixed as the SHCOMP +1.83%, NIKKEI
+1.00%, HSCEI +0.54% gained while the ASX -0.94%, STI -0.52% slipped; HSI was
flat for the day. TECHNOLOGY +0.98% outperformed boosted by beneficiaries of
the weaker Ringgit, INARI +3.85%, VITROX +2.00%, JCY+0.61%. Market breadth was
positive with gainers inching past losers by 453 : 412. Market futures closed
at 1682 (6pts discount).
2) Heavyweights : TENAGA +4.43% RM13.20, MAYBANK +0.35%
RM8.38, SKPETRO -3.09% RM2.19, SIME -0.94% RM8.35, PPB -2.37% RM15.62, BAT
-1.97% RM59.62, GENM -0.879% RM4.44, RHBCAP -1.91% RM6.16.
3) DBT : MESB 5.274mil @ RM0.77 (12.55% PUC), BAHVEST
4mil @ RM0.90, EDEN 2mil @ RM0.18.
4) Situational:-
AZRB +7.87%
RM0.685 - Ahmad Zaki Sdn Bhd, a wholly-owned unit of Ahmad Zaki Resources Bhd
(AZRB), has secured a RM257.0m project from Kwasa Land Sdn Bhd. AZRB said the
proposed 1.58-hectare project involved the development of 188 high-rise
residential units in Kwasa Damansara Township. The project shall be subject to
the execution of a development rights agreement with Kwasa Land within 60 days
of the letter of award.
5) HARTA : HY 09/15 Rev+26% RM699.9m Net+17% RM123.1m EPS
7.51s Div 4
Results
trails, making up 45% of cons RM275m
The higher revenue & net was in line with the group's
continued expansion in production capacity and increase in demand. The
strengthening of the USD also contributed to the higher revenue. For the
quarter yoy, operating profit margin increased from 23.7% to 24.7% due to
higher contribution from new production lines from NGC plants. PBT margin fell
from 23.6% to 19.8% due to recognition of FV loss of derivatives of RM21m,
versus corresponding quarter loss of RM6.9m. Qoq, revenue was 18.4% higher
while PBT was 6.1% lower. Earnings prospects for the group remain attractive
for 2016 underpinned by: (i) sustained demand growth for rubber gloves (ii)
efficiencies derived from internal production processes, and (iii) the favourable
USD/MYR exchange rate. Operation wise,
it's highly automated production processes model, solid improvement in its
production capacity and reduction in costs leading to better margins compared
to its peers & innovation in
producing superior quality nitrile gloves are positives.
6) Market : Technicals are turning more positive. The
KLCI could possibly look to retest its psychological level of 1,700 points in
the near-term. However, comments from the US Fed that an interest rate hike in
December is likely may cap upside.