FBMKLCI
1849.21 -1.52pts (-0.08%)
Volume 1.921b Value 2.350b
1) The KLCI broke its 8 day winning streak closing in
negative territory albeit recovering from a -11pts low for the day; this is
despite the stronger US market over the weekend after renewed bets that the ECB
will ease policy this week fuels sentiments. In the regional market, bourses
were positive inline with sentiments from the West as HSI +0.39%, NIKKEI
+0.90%, ASX +0.52% all closing into the green, In the local market, while most
of the stocks saw heavy selling amongst the broad market, the PLANTATION sector
-0.86% lost the most grounds weighed by heavyweights, KLK -2.88%, IOICORP
-0.62%, FGV -1.06%, GENP -0.55%. Market breadth was negative with losers
beating gainers by 408 : 384. Futures closed at 1842.50 (7points discount)
2) Heavyweights: KLK -2.88% RM24.20, PETGAS -0.91%
RM23.80, BAT -1.66% RM59.12, IOICORP -0.62% RM4.80, CIMB -0.27% RM7.15, PCHEM
+1.46% RM6.91, SIME +0.54% RM9.31, IHH +1.05% RM3.85
3) DBT: MPAY 3.076mil @ RM0.198 (26.7% discount), TALIWRK
3mil @ RM1.16, SCNWOLF 2mil @ RM0.35 (20.5% discount).
4) Situational:-
COASTAL +2.85% RM5.05 -
Coastal Contracts' wholly-owned subsidiaries, Coastal Offshore Pte Ltd,
Thaumas Marine Ltd and Pleasant Engineering Sdn Bhd have collectively secured
contracts for the sales of 3 Offshore Support Vessels and 2 low-end vessels for
an aggregate value of approximately RM178mil. Apart from the 2 OSVs which were
sold to a repeat customer, the other 1 OSV and 2 low-end vessels were sold to
new customers. With the securing of these latest sales, the total value of the
Group's vessel sales order book stood at approximately RM1.2 billion All of
these vessels are expected to be delivered in 2014 and 2015. Consequently, the
revenue stream from these vessels is expected to contribute positively to the
top and bottom line performance of the Group for the financial years ending
Dec. 31 and Dec. 31, 2015.
5) UZMA : In reference to news reports that said that
Uzma and its international partner have already landed the RSC and are
preparing to make a formal statement following the Offshore Technology
Conference Asia 2014 (OTC Asia) in Kuala Lumpur,the company clarified that its
wholly-owned subsidiary company, Uzma Energy Venture (Sarawak) Sdn. Bhd. and
its partner has entered into a contract with Petroliam Nasional Berhad
("PETRONAS") to carry out the development and production of petroleum
from Tanjung Baram field. Further details of the contract will be announced by
the Company once a written consent to release the said announcement has been
obtained from PETRONAS; +ve. We continue to like Uzma. Orderbook stands at
RM1.6b whilst bids are at RM2.6b. UZMA's earnings are expected to grow steadily
due to higher UzmaPres units and better wireline and well services take-up
rates as Uzma continues to build up its track record in this space. Chances for
RSC wins are strong given that Uzma was a participant in the early studies for
some of the marginal fields, which give its in-depth knowledge.
6) Market: More sideways trading expected following the
end of the quarter, support seen at 1820 points.
