Go to https://www.bisonline.com.my/ | 1 PP16795/03/2013(031743) Bursa Malaysia Bursa Malaysia Close Change +/- Change % FBMKLCI 1,669.24 -2.76 -0.17 FBMEMAS 11,639.02 -16.87 -0.14 FBM100 11,318.55 -18.53 -0.16 FBMEMAS Shariah 12,549.39 -24.15 -0.19 FBM Hijrah Shariah 14,147.18 -33.05 -0.23 Volume (mn) 1,781.47 -6.78 -0.38 Value (RMmn) 1,684.58 -56.72 -3.26 FBMKLCI YTD Chg -5.22 Scoreboard Close Change+/- (+/- %) Gainers 393 -68 -14.75 Losers 425 66 18.38 Unchanged 342 -10 -2.84 Regional Indices Close Change (+/-) Change (+/- %) YTD Chg (%) DJIA 17,568.00 -162.51 -0.92 -1.43 NASDAQ 5,098.24 -3.57 -0.07 7.65 S&P 500 2,063.59 -13.48 -0.65 0.23 FTSE 100 6,135.22 -88.30 -1.42 -6.56 Nikkei 225 19,492.60 -205.55 -1.04 11.70 HSI 21,905.13 -298.09 -1.34 -7.20 SHCOMP 3,470.07 -66.86 -1.89 7.28 KOSPI 1,949.04 -14.63 -0.75 1.75 TWSE 8,343.86 -110.41 -1.31 -10.35 STI 2,876.03 -24.89 -0.86 -14.53 JCI 4,464.18 -57.21 -1.27 -14.59 SET 1,306.98 -26.59 -1.99 -12.73 PSEi 6,838.42 -73.44 -1.06 -5.42 Market Valuation (PER) FY15 FY16 5Y Average FBMKLCI 15.74 15.05 15.70 SHCOMP 13.47 11.79 11.00 HSI 10.44 9.45 11.10 JCI 14.61 12.65 15.15 SET 12.68 11.30 13.68 STI 11.99 11.24 14.03 PSEi 16.51 14.99 17.40 The Research Team [email protected]03-26918887 ext 1735 KLCI Performance KLCI Year-End Target: 1,700 points Major Highlights Barakah wins Sabah Sarawak Gas Pipeline contract TNB says ICPT rebate has no impact on its financial position Willowglen to take part in S’pore transmission tunnel project Petronas awards Johor port operatorship for RAPID project MAHB confident in recording more travellers in 2016 Astro posts lower profit due to higher finance cost RAM lowers outlook on UMW’s sukuk to negative Local & Global Economic News Ringgit Ends 1.02% Lower VS Greenback As Crude Oil Slips British household spending highest since 2007, still below pre- crisis levels Germany presses for more robust EU fiscal supervision Bank of France trims Q4 French growth forecast after Paris attacks Russia to seek IMF meeting on status of Ukraine's debt Regionally Key regional markets ended negative yesterday. SET emerged as the biggest loser, lost 1.99% to close at 1,306.98, followed by SHCOMP (- 1.89%), HSI (-1.34%), TWSE (-1.31%), JCI (-1.27%), PSEi (-1.06%), N225 (-1.04%), STI (-0.86%) and KOSPI (-0.75%) making up the rest of the losers. Locally The FBMKLCI lost 2.76 points to close at 1,669.24 yesterday. Bursa’s market breath was negative with 425 gainers against 393 gainers while 342 counters were traded unchanged. KOSSAN (+44sen), SHH (+31sen) and HAPSENG (+28sen) led the gainers. While PETGAS (- 44sen), BAT (-24sen) and POS (-21sen) led the losers. Market Preview Shares in Europe closed lower, dragged down by mining and energy related stocks due to falling commodity prices. Wall Street also ended lower due to the same reason. The DJIA and S&P500 fell 0.92% and 0.65% respectively to end at 17,568.00 and 2,063.59 respectively. In Asia, key indices ended lower after global oil benchmarks hit the lowest levels in almost seven years, sending energy stocks and raw materials producers sharply lower. Back home, the FBMKLCI ended flattish, losing 2.76 points or 0.17% to end at 1,669.24, dragged down mainly by O&G stocks. Trading participation saw net selling by foreign institutions and local retail while local institutions were net buyers. We expect the local market to remain flat with slight bias to down trend due to continuous selling by foreign investors and dampened regional sentiment with the index hovering circa 1,665-70. 1500 1550 1600 1650 1700 1750 1800 1850 1900 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 MARKET INSIGHT BIMB SECURITIES RESEARCH Wednesday, 9 December 2015
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BIMB SECURITIES RESEARCH MARKET INSIGHT … · Barakah wins Sabah Sarawak Gas Pipeline contract ... BAT (-24sen) and POS (-21sen) led the losers. Market Preview Shares in Europe closed
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TNB says ICPT rebate has no impact on its financial position
Willowglen to take part in S’pore transmission tunnel project
Petronas awards Johor port operatorship for RAPID project
MAHB confident in recording more travellers in 2016
Astro posts lower profit due to higher finance cost
RAM lowers outlook on UMW’s sukuk to negative
Local & Global Economic News
Ringgit Ends 1.02% Lower VS Greenback As Crude Oil Slips
British household spending highest since 2007, still below pre-
crisis levels
Germany presses for more robust EU fiscal supervision
Bank of France trims Q4 French growth forecast after Paris
attacks
Russia to seek IMF meeting on status of Ukraine's debt
Regionally
Key regional markets ended negative yesterday. SET emerged as the biggest loser, lost 1.99% to close at 1,306.98, followed by SHCOMP (-1.89%), HSI (-1.34%), TWSE (-1.31%), JCI (-1.27%), PSEi (-1.06%), N225 (-1.04%), STI (-0.86%) and KOSPI (-0.75%) making up the rest of the losers.
Locally The FBMKLCI lost 2.76 points to close at 1,669.24 yesterday. Bursa’s market breath was negative with 425 gainers against 393 gainers while 342 counters were traded unchanged. KOSSAN (+44sen), SHH (+31sen) and HAPSENG (+28sen) led the gainers. While PETGAS (-44sen), BAT (-24sen) and POS (-21sen) led the losers.
Market Preview
Shares in Europe closed lower, dragged down by mining and energy
related stocks due to falling commodity prices. Wall Street also ended
lower due to the same reason. The DJIA and S&P500 fell 0.92% and
0.65% respectively to end at 17,568.00 and 2,063.59 respectively. In
Asia, key indices ended lower after global oil benchmarks hit the lowest
levels in almost seven years, sending energy stocks and raw materials
producers sharply lower. Back home, the FBMKLCI ended flattish,
losing 2.76 points or 0.17% to end at 1,669.24, dragged down mainly by
O&G stocks. Trading participation saw net selling by foreign institutions
and local retail while local institutions were net buyers. We expect the
local market to remain flat with slight bias to down trend due to
continuous selling by foreign investors and dampened regional
Close Change+/- (+/- %) British American Tobacco Bhd
PETRONAS GAS BHD
22.88 -0.44
Far East BRITISH AMERICAN TOBACCO BHD
56.80 -0.24
Petronas Dagangan POS MALAYSIA BERHAD
3.05 -0.21 Kumpulan H&L High-Tech Bhd
CARLSBERG BREWERY MALAYSIA B
11.50 -0.20
APM Automotive GUINNESS ANCHOR BHD
13.96 -0.17 Daily Participation
Participation
(%) Bought (RMm)
Sold (RMm)
Net (RMm)
Local Institution 56.2 1024.8 869.5 155.3
Local Retail 19.9 327.4 341.9 -14.5
Foreign 23.9 332.4 473.2 -140.8
Total 100.0 1,684.6 1,684.6 0.0
www.bimbsec.com.my | 3
Market Insight
LOCAL CORPORATE NEWS Barakah wins Sabah Sarawak Gas Pipeline contract Barakah Offshore Petroleum has received the letter of award from Petronas Gas (PGB) for the provision of repair and maintenance of Sabah Sarawak Gas Pipeline. Sabah Sarawak Gas Pipeline is a network of onshore pipeline that link Sabah Oil and Gas Terminal in Kimanis, Sabah and Petronas LNG Complex in Bintulu, Sarawak. The length of the pipeline is 503km. The scope of the contract includes inspection, testing, repair and maintenance of the pipes and related infrastructures to maintain the pipeline integrity. The contract is for 2 years from Dec 1, 2015 until Nov 30, 2017. PGB has the option to extend the contract for an additional year. The value of the contract will depend on the number of work programmes to be carried out for the duration of the contract based on unit rates specified in the contract. (Source: Star Biz) TNB says ICPT rebate has no impact on its financial position Tenaga responding to the Government’s announcement of an imbalance cost pass-through (ICPT) rebate to customers of 1.52 sen/kWh in the Jan-June 2016 period mentioned the impact of the rebate’s implementation is neutral on TNB and will have no effect on its business operations and financial position. The rebate will be applicable to all consumers except domestic consumers with monthly consumption of 300 kWh and below. On the RM762.03m net savings, savings came from savings in fuel and generation costs for the period from July to December this year and higher piped gas price effective from next month. (Source: Star Biz) Willowglen to take part in S’pore transmission tunnel project Willowglen MSC Bhd’s unit Willowglen Services has been awarded a RM6.938m contract by Incsys to do the integrated security and operation surveillance system (ISOSS) works for the Jurong Island-to-Pioneer transmission cable tunnel project in Singapore. ELV (extra low voltage) sub-contract’s period was from Oct 21, 2015 to Oct 30, 2017. The contract is not renewable. (Source: Star Biz) Petronas awards Johor port operatorship for RAPID project Petronas has awarded the Johor port operatorship for its RAPID project to Johor Port (JPB). Petronas subsidiary Petronas Refinery and Petrochemical Corp SB held a handover and commencement of operations ceremony for the material offloading facility (MOLF) Teluk Ramunia in Pengerang, Johor. The ceremony is the conclusion of a 4-year port operatorship contract for the MOLF at Teluk Ramunia. As the port operator, JPB will manage the operations and logistics functions at the MOLF for Petronas’ RAPID project in Pengerang. (Source: Star Biz) MAHB confident in recording more travellers in 2016 Malaysia Airports Holdings (MAHB) is optimistic of capturing a fair share of the travellers market in 2016, boosted by the government's effort to relax visa restriction process. Yhere were a lot of headwinds this year such as the haze, aftermath of the twin MAS tragedies (MH370 and MH17) and other air incidents. Going forward MAHB is already seeing a surge in travellers from China. For 2016, MAHB is optimistic as the government has announced that it will issue e-visa to China and India. (Source: Star Biz) Astro posts lower profit due to higher finance cost Astro Malaysia’s net profit slid 6.5% to RM106.01m for Q3 ended Oct 31, 2015 on unrealised forex impact, but it will maintain its dividend policy payout. It has declared a dividend of 2.75sen per share for the quarter under review. Lower net profit was due to a drop in EBITDA of RM16.1m, higher net finance costs by RM36.4m on unrealised forex impact arising from an unhedged finance lease liability of RM54.5m and unhedged vendor financing of RM8.8m. This was offset by a decrease in the discounting of the transponder’s deposit to its present value of RM22m. (Source: Star Biz) RAM lowers outlook on UMW’s sukuk to negative RAM Ratings has revised the outlook on the long-term ratings of UMW’s Islamic debt programmes to negative, while at the same time reaffirming the AAA and P1 ratings of the programmes. RAM had noted UMW’s weakening operating performance and financial profile, which may not recover to previous levels in the short term. UMW’s debts had grown to RM6.21bn as at end-Sept 2015, partially due to the weakened ringgit. As the company is expected to incur debt to fund additional capex, a new business venture and other investments, balanced off by repayment of some short term debts, its debt load is expected to stay escalated at year-end, although possibly reducing to about RM5.5bn next year (Source: Star Biz)
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Market Insight
LOCAL AND GLOBAL ECONOMIC NEWS Ringgit Ends 1.02% Lower VS Greenback As Crude Oil Slips The ringgit closed 1.02% lower to the US dollar today on a sell-off following another slip in global crude oil prices. At 5 pm, the local unit was quoted at 4.2550/2600 against the greenback from 4.2120/2180 yesterday. Ringgit faced renewed pressure due to tumbling global oil prices. The ringgit was also traded lower against a basket of major currencies as at 5 pm. It went down against the British pound to 6.3944/4032 from Monday's close of 6.3487/3586, and softened against the yen at 3.4574/4623 from 3.4136/4193. The ringgit was lower against the Singapore dollar at 3.0199/0239 from yesterday's close of 3.0000/0060, and weakened against the euro to 4.6222/6285 from 4.5574/5651. (Source: Bernama) British household spending highest since 2007, still below pre-crisis levels British weekly household spending rose in 2014 to its highest since before the global financial downturn but remained below pre-crisis level, official data showed on Tuesday. Households spent on average £531.30 (US$795.73) per week last year, which was 1.4% more than in 2013, adjusted for inflation. Average household spending was still below a peak of £538.70 in 2007, but had recovered from a 10-year low of £507.40 in 2012. Households spent a 1/5 of their income on average in 2014 on housing, bills and home improvements at £158.30 a week - although that understates the true cost, since it does not include rent funded by welfare payments and also covers households which own their home outright. (Source: Reuters) Germany presses for more robust EU fiscal supervision Political interference by EU members risks hampering the European Commission's role of overseeing budget rules. The supervision duties must be administered independently of political interests. The commission's role as guardian of European Union treaties should not be compromised by political interests or interference, the paper. (Source: Reuters) Bank of France trims Q4 French growth forecast after Paris attacks Bank of France cut its forecast for French economic growth to 0.3% on Tuesday, blaming in part the hit to hotel bookings and restaurant takings from Islamist militant attacks in Paris last month. The central bank gave its updated estimate for GDP in a monthly business sentiment survey which showed the index for morale in the service sector fell in November to 96 from a downwardly-revised 97 in October. (Source: Reuters) Russia to seek IMF meeting on status of Ukraine's debt Moscow would seek a meeting of the International Monetary Fund's board of directors to decide whether Ukraine's debt to Moscow should be considered official rather than commercial. IMF management has confirmed the official status of the debt and now Russia intend to initiate a meeting of the board of directors of the Fund for a formal confirmation of the status of the debt. (Source: Reuters)
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Market Insight
ECONOMIC CALENDAR
Date Time Country Event Survey Actual Prior Revised
12/09/2015 00:01 SI Manpower Survey 1Q -- 9% 13% -- 12/09/2015 05:30 VZ Vehicle Sales Total Nov -- 1296 613 --
12/09/2015 07:30 AU Westpac Consumer Conf Index Dec -- -- 101.7 --
12/09/2015 07:30 AU Westpac Consumer Conf SA MoM Dec -- -- 3.90% --
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index over the next 12 months NEUTRAL The Industry as defined by the analyst’s coverage universe, is expected to perform in line with the relevant primary
market index over the next 12 months UNDERWEIGHT The Industry as defined by the analyst’s coverage universe, is expected to underperform the relevant primary
market index over the next 12 months Applicability of ratings The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies. Disclaimer The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of BIMB Securities Sdn Bhd may from time to time have a position in or either the securities mentioned herein. Members of the BIMB Group and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgements as of this date and are subject to change without notice. BIMB Securities Sdn Bhd accepts no liability for any direct, indirect or consequential loss arising from use of this report.
Published by
BIMB SECURITIES SB (290163-X) A Participating Organisation of Bursa Malaysia Securities Berhad Level 32, Menara Multi Purpose, Capital Square, No. 8 Jalan Munshi Abdullah, 50100 Kuala Lumpur Tel: 03-2691 8887, Fax: 03-2691 1262 Kenny Yee http://www.bimbsec.com.my Head of Research
The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of BIMB Securities Sdn Bhd may from time to time have a position in or with the securities mentioned herein. Members of the BIMB Group and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opin-ions and estimates included in this report constitute our judgement as of this date and are subject to change without notice..
The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of BIMB Securities Sdn Bhd may from time to time have a position in or with the securities mentioned herein. Members of the BIMB Group and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opin-ions and estimates included in this report constitute our judgement as of this date and are subject to change without notice..
The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of BIMB Securities Sdn Bhd may from time to time have a position in or with the securities mentioned herein. Members of the BIMB Group and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opin-ions and estimates included in this report constitute our judgement as of this date and are subject to change without notice..