FBMKLCI
1842.82 -1.03pts (-0.06%)
Volume 1.157b Value 2.077b
1) The KLCI index swung between gains and losses before
closing just 1.03pts below parity; this is inline with the US market that
reversed amid yesterday's federal budget negotiations as well as the Fed's
speech next week where the looming QE issue will be addressed. The regional
bourses were generally weaker as survey showed possibility of Fed slowing asset
purchases at the meeting (17-18 Dec), HSI and SHCOMP were the biggest losers
today losing 1.71% & 1.49% respectively. In the local market, profit taking
was seen all across the board especially the PLANTATION index which was weighed
down by heavyweights such as IOICORP -2.19%, FGV -2.38%, KLK -0.32%. Market
breadth was negative with losers beating gainers by 420 : 334. Futures closed
at 1836.5 (6pts discount).
2) Heavyweights: IOICORP -2.19% RM5.80, PCHEM -1.85%
RM6.87, DIGI -1.65% RM4.76, TM -1.78% RM5.50, IHH -1.98% RM 3.95, TENAGA +2.54%
RM11.30, MAYBANK +0.80% RM10.08, GENTING +1.30% RM10.08
3) DBT: EDUSPEC 7.4mil @ RM0.135 (10% discount), PALETTE
700.3k @ RM0.185 (410% premium), EKOVEST 500k @ RM2.75 (5.9% discount).
4) Situational:-
DESTINI +1.08% RM0.465 - Destini Bhds wholly owned
subsidiary, Destini Prima Sdn Bhd, has secured a RM46.3m three year contract
from the Defence Ministry to supply defence equipment to the Royal Malaysian
Air Force. The company has been working with the defence ministry for more than
10 years. Including this contract, Destini's total orderbook from theDefence
Ministry stands at RM152.0m
5) COASTAL : announced that its wholly-owned subsidiaries
have secured contracts for the sales of one unit Subsea Support Maintenance
Vessel and two units low-end vessels for an aggregate value of cRM148 million.
Including the new contracts and after adjusting for revenue recognition from
vessels delivered to buyers up to 11 December 2013, Coastal has about RM1.34
billion worth of vessels sales orders awaiting delivery to customers up to
2014. This is the fifth batch of vessel sales order secured by the Group in
FY2013; +ve, the contracts are expected to contribute positively to the EPS and
net assets per share for the financial years ending 31 December 2013 &
2014. Group's recent Q3 results were in line, with 9MFY13 PBT margin improving
to 20% from 16.4%. Catalyst ahead as group is scheduled to take delivery of
it's first jack-up rig in 2HFY14 & the potential of it being contracted
there after.
6) Market: The KLCI index is likely to be supported by
continued book closing activities despite being overbought. Stocks still
attractive for 2014 positioning are Gamuda, JTiasa, FGV, WCT.
