FBM 1694.16
+1.58pts (+0.09%)
Volume 1,204mil Value RM1,604mil
1) KLCI rose to a high of 1697.37 (+4.79pts) on positive
sentiments from better US job data reported last week and regulators' decision
to relax draft plans for tougher new bank liquidity rules. However index lost
steam in line with the regionals as gains on index were limited as recent rally
has indices trading near record highs with shares being in overbought position.
Instead we saw a two tiered market as mid caps and lower liners especially in
O&G and semicon sector gaining traction resulting in gainers thumping
decliners 509:252. Future was hit down at close 1684 (10points discount).
2) Heavyweights: GENTING+2.00% RM9.70, UMW+1.96% RM12.46,
GENM+1.36% RM3.74, PBBANK+0.25% RM16.18, SIME-0.62% RM9.65, BAT-2.18% RM-2.18%
RM60.14, AXIATA-0.45% RM6.71, TM-1.01% RM5.88
3) DBT: FITTERS 4mil @ RM0.625 (1.28% PUC), PLS 1.9mil @
RM1.1241 (3% Premium)
4) Situational:
PERDANA+5.4% RM1.17: Gets a LOA for the supply of four
units of Anchor Handling Tug Supply (AHTS) vessels worth RM430mil. The charters
will run effective from 1st January 2013 for a period of 5 years each with
extension options of an additional year.
5) ALAM+1.3% RM0.775: Alam has won a RM8.1 million
contract from a Malaysia-based international provider of oilfield services
company to provide one straight supply vessel. The nine-month job had commenced
in the fourth quarter of last year with an optional extension provision for
another 12 months at a value of up to RM10.9 million, if exercised by the
client : +ve, contract expected to positively contribute to earnings. Alam's
turnaround process appears to be intact. Management is optimistic about the turnaround
in the OIC division. While in the OSV division, overall vessel utilization rate
stands at c80%, while prospects for pick-up in charter rates next year are
improving. Trading Buy for improvement in OSV segment.
6) Mkt: rotational play to continue amongst sectors and
lower liners to maintain the buoyant momentum in this January rally. Amongst
the trading names that are at attractive buy levels: Benalec, Cypark, MMC,
MPHB, Waseong, Penergy.
