FBMKLCI
1818.39 +0.82pts (+0.05%)
Volume 1.757b Value 1.363b
1) The KLCI closed on a mixed note as the index traded in
a tight 5pts band before closing just +0.82pts above parity. This is despite
the stronger close in the US and generally well received Budget 2014. The
PROPERTY index -1.49% took a hit as UEMS -3.84%, SUNWAY -2.37%, E&O -4.24%
fell on selling by both local and foreign parties after the higher rates for
RPGT beginning Jan 2014, to curb speculative buying. Market Breadth was negative
with losers beating gainers by 449 : 320. Futures closed 1820pts (2pts
premium).
3) DBT : SUNWAY 33mil @ RM2.92 (1.91% PUC @ 1.3%
premium), IJM 3.8mil @ RM5.83, EDEN 3.33mil @ RM0.30 (1.07% PUC @ 14.3%
discount).
4) Situational:-
HSL + 1.01% RM1.99 - Hock Seng Lee Bhd has clinched a
RM86.7m project to build a raw water pumping station at Tanjung Manus water
supply project in Sarawak. The contract was awarded by Lembaga Air Sibu Sarawak
and the scope of works include piling, pumping station, mechanical and
electrical works and other related external works. The contract is for a 24
months period with completion due by the fourth quarter of 2015
KIMLUN -0.51% RM1.95 - Kimlun Corp Bhd has accepted the
letter of award from Bukit Indah (Johor) Sdn Bhd, a wholly owned subsidiary of
S P Setia Bhd, worth RM70,5m. The contract was for the construction of
apartments and ancillary buildings in Johor Bahru. Construction work is
expected to be completed by Oct 2015. The project is expected to contribute
positively to the earnings and net assets of the Kimlun group for the financial
years during the contract period.
5)Alam M
Announce that it has been awarded a contract for the
provision of one unit straight supply
vessel for an established oil and gas company.
The value of the Contract is approximately RM37.9 million
(value inclusive of the optional periods, if exercise by client). The Contract
is for a firm period of three years with an extension option for another one
year.
+ve and remains a top pick amongst the O&G players
trading at 12x PE forward year earnings.
6) Market - With the Budget issue now over, major
influence on the KLSE will shift to the foreign news flow particularly in the
US and timetable for Fed tapering. As this action is largely expected to be
postponed to 1Q next year, the market is set to build momentum towards a year
end rally and a CI target of above 1850pts.
