FBMKLCI
1762.19 +19.32pts (+1.11%)
Volume 1.858b Value RM2.109b
1) The FBMKLCI erased more than half of yesterday's
losses to closed +19pts, aligned with global sentiments as the S&P recorded
its biggest gain since January on the back of better than expected economic
data and speculation that the Fed's will maintain low interest rates. Global
bourses were mostly bullish as NIKKEI +1.94%, SHCOMP +0.64%, HSI+0.39%. In the
active market, PLANTATION +1.75% lead the sector indices with IOICORP +3.84%,
BKAWAN +3.01%, FGV +0.668% all closed at their day high. Market breadth was positive with gainers
surpassing losers by 526:221. Futures closed at 1759.5 (3 pts discount).
2) Heavyweights : TENAGA +2.98% RM8.29, IOI +3.84%
RM5.40, AXIATA +2.16% RM6.62, PCHEM +3.30% RM6.57, MAYBANK +1.39% RM10.18,
GENTING +1.54 RM10.50, UMW +2.82% RM14.54, SIME +0.74% RM9.53.
3) DBT : MAYBANK 14.934mil @ RM10.25, TGOFFS 10mil @
RM0.53 (3.385% PUC @ 12.4% discount), MISC 6mil @ RM4.95 (2.6% discount)
4) Situational:-
STAREIT Parity RMM1.10 - Starhill Real Estate Investment
Trust (Starhill REIT) plans to raise its borrowing limit to 60% of its total
assets. This is higher than the statutory 50% limit for Malaysian-listed
property trust. Starhill REIT said that the proposed higher borrowing limit
will offer the group funding flexibility for larger real estate acquisitions
via borrowings in the future. The proposal comes amid Starhill REIT's plans to
raise up to RM800million via placements of new units of the property trust.
5) CBIP : The Board of the Company announced that
Modipalm Engineering Sdn. Bhd., a wholly-owned subsidiary of the Company, had
on 14 June 2013 received a LOA dated 31 May 2013 from PT Lestari Tani Teladan,
a subsidiary of PT Astra Agro Lestari Tbk of Jakarta, for the design, supply,
installation and commissioning works of one (1) unit Continuous Sterilisation
Palm Oil Mill of capacity 45 MT/Hr. The import portion (Supply) of the job is
worth USD6.1m while the local portion (site construction) is worth IDR 50.4b -
total equivalent to about RM34.6m. The LOA is expected to contribute positively
to the earnings of CBIPH Group for the financial year ending 31 December 2013;
+ve, we continue to see value in CBIP, as a a proxy to the plantation sector,
but is shielded from CPO price volatilities.
Plantation companies, especially the bigger ones, will continue with
their capital expenditure on new mills, in preparation for the upcoming
maturity of their estates. Valuations remain at an undemanding 7-8x PE for
FY13-14.
6) Market: Bursa is likely to continue its technical
bounce barring heightened volatility in the global currency and bond markets.
Stocks with potential for a profitable trades are CMSB, Coastal, Dayang,
IJMLand, MahSing, Naim, Perisai, Pantech, Perdana, SPSetia, Sunway.
