FBMKLCI
1855.74 -5.24pts (-0.28%) Volume
2.168b Value 1.742b
1)The KLCI market slipped for a 3rd day after the US market was dragged lower
led by losses in the NASDAQ which fell -1.75% overnight; global sentiments were
also jittery as tension in the Ukraine continue to increase. In the regional
market, bourses fell after comments from President Xi JinPing casts doubts on
hopes for further stimulus; SHCOMP fell -1.62% while HSI fell 0.41% today. In
the local scene, most of the stocks were trading in negative territory as
TECHNOLOGY-1.94% index led in losses amongst the broad market, ITRONIC -43.79%,
JCY -1.33%, D&O -6.25%, were the biggest losers. Market breadth was
negative with losers thumping gainers by 647 : 235. Futures closed at 1855.5
(parity).
2) Heavyweights : TENAGA -0.83% RM11.84, PBBANK -0.49% RM20.16, PETGAS -1.26%
RM23.40, FGV -1.52% RM4.51, PETDAG -1.30% RM30.22, ASTRO -2.16% RM3.17,
YTL -1.22% RM1.61, TM +1.16% RM6.09
3) DBT : SUNWAY 30mil @ 3.05 (1.74% PUC @ 3.2% discount), IBHD 3.7mil @ RM3.30
(3.23% PUC), PANTECH 3mil @ RM1.01
4) Situational:-
ELSOFT +1.41% RM0.715 - Elsoft Research Bhd has secured orders for MYR25.0m
worth of LED test equipment so far this year, which will improve its first half
year results compared with the same period last year. According to the company,
the LED test equipment would be delivered in stages from now till the second
quarter. These are orders from multinational corporations in Malaysia and other
countries in Asia. The amount is more than the MYR17.0m achieved in sales for
the first half of 2013. The company expects the second half of 2013 to improve
over the previous year's corresponding period, which registered about
MYR10.0m in orders. According to the Group, these are highly customised LED
testers with special functions, which have the capability to test between 3,000
units and 8,000 units of LED chips per hour.
5) SIME
Sime Darby Berhad is taking a stake in an industrial biotechnology company,
Verdezyne Inc., as part of an initiative to pursue strategic growth areas for
its plantation business. Apparently Verdezyne will receive a US$30mil
investment from Sime Darby to co-develop a facility. Sime Darby Renewables, a
new unit under Sime Darby Plantation, will spearhead this initiative which
essentially focuses on converting traditional and non-traditional palm-based
commodities into products of higher value.
California-based Verdezyne has proprietary technologies to competitively
produce chemicals derived from sustainable materials, which can be found in the
oil palm value chain. These chemicals are used to make everyday items like
clothing, footwear and adhesives, as well as industrial products such as
automobile parts. Currently, these chemicals are mainly derived from
petroleum-based feedstocks such as benzene and butadiene. Verdezyne's current
products targeted for commercialisation have a potential combined market size
of approximately RM37 billion with laboratory, pilot and demonstration-scale
validation already carried out. Results so far have attracted favourable
interest from the market.
Sime Darby plans to emerge as the single largest investor in Verdezyne,
together with existing investors BP Alternative Energy, Royal DSM, a global
life sciences group; OVP Venture Partners and Monitor Ventures, subject to
definitive documentation.
+ve We favour SIME as our favourite core blue as the company begins to monetize
its potential value and thus we expect it trade closer to its RNAV of RM12.50.
6) Market - Expect volume leaders consolidation to continue as index remains
range bound
