FBMKLCI
1751.57pts +10.81pts (+0.62%)
Volume 1.322b Value RM2.194b
1) THE FBMKLCI continued to rally inline with the US
market overnight that jumped as a downward revision in economic growth calmed
concerns regarding the tapering of the bond buying programme. In the regional,
markets pared its gains with SHCOMP -0.08% closing flat after banks lost
grounds amid the on-going cash crunch concerns while the HSI closed just +0.5%
higher compared to peak of 1.6%. In the local market, higher beta indexes
PROPERTIES +2.38% and CONSTRUCTION +1.63% outperformed lead by UEMS +4.05%, SPSETIA
+3.42%, IJMLAND +4.83%, UOADEV +4.04%, and GAMUDA +2.47%. Market breadth was
positive with gainers leading loser by 502 : 253. Futures closed 1748pts (3.5
pts discount)
2) Heavyweights : GENTING +4.36% RM10.30, IOICORP +2.10%
RM5.34, MAYBANK +0.8% RM10.08, MISC +4.07% RM5.12, AMBANK +1.44% RM7.08, PCHEM
+0.92% RM6.60, IHH -0.26% RM3.88, TM -0.18% RM5.43
3) DBT : SUNREIT 6mil @ RM1.55, IJM 3.692mil @ RM5.56,
CSL 3.2mil @ 0.30 (7.1% premium)
4) Situational:-
KIMLUN+2.54% RM2.02: its wholly-owned subsidiary, SPC
Industries Sdn Bhd had accepted the letter of award from SK Engineering &
Construction for the supply and delivery of precast concrete tunnel segment
linings ("TLS") to the East-West Transmission Cable Tunnel Project EW2,
Singapore for Singapore Dollar 17.13 million (RM42.8mil). The supply of the TLS
is expected to spread over a period of approximately 33 months.
5) SapuraKencana
Announced today that via a public tender exercise, Sapura
Navegação Marítima S.A., Brazil, a jointly controlled entity between TL
Offshore Sdn Bhd, a wholly-owned subsidiary of SapuraKencana and Seabras
Serviços De Petroleo S.A., a subsidiary of Seadrill Limited has received
notification from Petróleo Brasileiro S.A.
that SNM has been awarded
contracts to charter and operate three units of Pipe Laying Support
Vessels at total award value of
approximately USD2.7 billion. The contracts are for a period of eight years
with extension option for additional eight years and are expected to commence
by the second quarter of 2016. The three PLSVs will be constructed outside
Brazil and will contribute positively to the SapuraKencana Group's net assets
and earnings for the financial year ending 31 January 2017 and beyond.
+ve as will add to its substantial RM18bn current order
book and maintain its position as the number one O&G player to own in
Malaysia.
6) Market - Expect market volatility to taper down after
the dramatic dip that was seen particularly overseas in the past few weeks.
Focus to continue to be on the O&G segment. We recommend buying Coastal on
weakness as we expect details on its acquisition of a drilling rig to emerge in
the coming weeks. This will help smoothen out the volatility of its ship
building biz earnings.
