FBMKLCI
1766.49pts +3.62pts (+0.21%)
Volume 1.507b Value RM1.845b
1) The KLCI opened higher after US market and Europe rose
on better economic data while US earning season open on a positive note. Local
market trended high albeit in a small trading range of 3points. Regional
markets were firmer with SHCOMP recovering from early weakness after China
inflation data rose faster than expected in June. TECHNOLOGY index +2.89%
rallied lead by JCY +6.62%, UNISEM+3.52%, GTRONIC +2.55% on the back of recent
strength in the USD. Market breath was skewed towards the positive with gainers
leading losers by 466 : 286. Futures closed 1769pts (3pts premium).
2) Heavyweights : TENAGA +2.16% RM8.50, MAYBANK +1.16%
RM10.42, GENM +1.31% RM3.87, FGV +1.34% RM4.54, PETGAS -0.95% RM20.94, DIGI
-0.65% RM4.62, IOICORP -0.55% RM5.42, GENTING -0.4% RM9.95
3) DBT : KNM 28mil @ RM0.48 (1.879% PUC), BSTEAD 19.30mil
@ RM5.16 (1.866% PUC @ 1.7% discount),
OSK 18.063mil @ RM1.59 (1.86% PUC, 2.5% discount), MAYBANK 10.53mil @ RM10.399
4) Situational:-
TENAGA +2.16% RM8.50 - Deputy Energy,
Green Technology and Water
Minister Datuk Seri Mahdzir Khalid told Parliament yesterday that Tenaga
Nasional (TNB) will
implement the long
anticipated fuel cost pass-through
mechanism next year. Under the FCPT mechanism, tariffs will
be adjusted every 6 months to reflect changes in the price of coal and gas.
If this
materialises, it will
be positive for TNB as it
would be able
to pass on
the fluctuations in its
fuel costs to
ensure long-term earnings
sustainability.
5)SKPETRO : announced that its wholly-owned subsidiary,
Kencana HL Sdn Bhd has received a letter
of award from Trans Thai-Malaysia (Malaysia) Sdn Bhd ("TTM") for the
provision of engineering, procurement, construction, installation and
commissioning ("EPCIC") of JDA Gas Balancing Evacuation
("EVA") Project for TTM. The Contract is valued at approximately
USD180.65m. It is for a period of three years and the works is expected to
commence in the second quarter of 2013 and expected to be completed by the
first quarter of 2016. The Contract is expected to contribute positively to the
earnings of SapuraKencana Group for the ; +ve & within the scope of
expected contracts win in the year. We remain positive on SKPETRO on this
development and also the company's strong earnings prospects over the medium
term. Other stock's near-term catalysts include: i) MYR3bn worth of
transportation and installation contracts, ii) MYR1bn-MYR2bn worth of subsea
contracts, and iii) a new risk-sharing contract.
6) Market: Lower liners and situationals are to be the
focus of trading as institutional stocks continue to consolidate. Accumulate
OSK & Genting on weakness.
