Market Roundup | 4 June 2013

FBMKLCI  1776.74  +10.41pts  (+0.59%)  Volume  2.100b    Value RM2.206b

 1) The KLCI was stronger today after the Fed announced that the FOMC will continue to back the QE on the back of weaker data overnight. Regionals were also positive led by Japan stocks which saw steep losses recently. Index gapped up to close at day's high led by IOI and PCHEM. PLANTATION +1.85% outperformed led by IOI +3.11%, GENP +6.89%, KLK +1.98%. Market breadth throughout the day was generally positive with gainers surpassing losers by 496:377. Futures closed 1777.5 (1 pts premium)

 

2) Heavyweights : IOICORP +3.11% RM5.29, PCHEM +1.35% RM6.73, GENM +2.04% RM4.00, KLK +1.98% RM21.62, CIMB +0.48% RM8.30, MAYBANK +0.39% RM10.26, PPB +1.93% RM13.72, DIGI +0.85% RM4.70, TENAGA -0.59% RM8.32

 

3) DBT : TENAGA 50mil @ RM8.24 (0.89% PUC @ 1% discount - Khazanah bloc), IJACOBS 10mil @ RM0.15 (8.3% @ 26% discount), CIHLDG 2.25mil @ RM1.00 (2.25% PUC @ 11% discount)

 

4) Situational:-

FREIGHT+ 5.0% RM1.47, SCOMIES +5.78% RM0.64 - Freight Management Holdings and Scomi Energy Services have teamed up to buy and operate ships for the oil and gas industry in Southeast Asia. This JV included leasing or chartering the marine vessels on bare boat basis to third parties in the O&G industry and other industry in the region 

WASEONG +1.59% RM1.91 - Group is planning to invest RM2.3bil over the next 10 years to develop an agro-industrial complex in Congo. The project included a 180,000ha palm plantation, 800km north of the country's capital, Brazzaville. The investment, undertaken through local firm Atama Plantations in which Wah Seong has a 51% stake bought in 2012 for US$25mil (RM77mil), would be the largest palm oil project in the Congo basin.

 

5) F&N : Fraser & Neave Holdings Bhd announce that its wholly-owned subsidiary, F&N Beverages Marketing Sdn Bhd ( F&NBM) has today entered into an agreement with Oishi Trading Co., Ltd of Thailand pursuant to which F&NBM has been appointed as the exclusive distributor to distribute, market and sell Oishi ready-to-drink green tea products in Malaysia. F&NBM will be distributing a selection of four Oishi products, namely Oishi Green Tea Original flavour; Oishi Green Tea Honey and Lemon flavour; Oishi Green Tea Genmai (Japanese rice) flavour; and Oishi Black Tea Lemon flavour, all in 380ml PET bottles. The Oishi products are imported from Thailand and with immediate effect will be retailed initially in selected convenience stores country-wide; +ve but largely expected. This cross selling of products could eventually be an earnings kicker in the near term, which should restore soft drinks volume closer to the Coca-Cola days. The increased volume will also go to help soften the weaker revenue from Dairies Malaysia, as evidenced in the latest quarterly results. F&N could be looking at producing the Oishi beverages for the local market in the longer term.- HOLD.

 

6) Market: With the KLCI index managing to hold above its support at 1765 level, the market will follow through on its technical bounce. Stocks which have retraced to attractive levels are CIMB, Genting, MHB, HLBank. Take profit on GENP, Airasia