FBMKLCI
1876.58 +1.98pts (+0.11%)
Volume 2.035b Value 1.866b
1) The KLCI traded sideways today before closing just above parity before the US Fed's meeting
tonight where the central bank will update its stance on the stimulus. In the
regional market, bourses were mixed while NIKKEI bucked the regional trend
gaining +0.93%, HSI -0.09% and SHCOMP -0.54% continue to fall after reports of
FDI in China showed declines in May. In the local market, TECHNOLOGY index
outperformed the rest of the market gaining +0.76% boosted by INARI +4.15%, MPI
+1.36%, VITROX +2.72%. Market breadth was positive with gainers beating losers
by 468 : 350. Futures closed at 1874 (2.5 pts discount).
2) Heavyweights : TENAGA +1.36% RM11.88, CIMB +0.83%
RM7.22, IOICORP +1.18% RM5.11, MISC +2.07% RM6.39, PETGAS +0.91% RM24.30, BAT
-3.14% RM67.06, ASTRO -3.80% RM3.54, YTL -1.88% RM1.56.
3) DBT : PMIND 8.291mil @ RM0.045, INARI 5mil @ RM2.95,
XINGHE 5mil @ RM0.22.
4) Situational:-
YTLPOWR -0.67% RM1.47 - news reported YTL Power is likely
to withdraw from participating in the RM3.0b power plant project in Johor
called Project 4A amid mounting criticism on the way the contract was awarded
by the Energy Commission through direct negotiation instead of competitive
bidding. Its withdrawal is expected to pave the way for an open tender.
WPRTS +1.48% RM2.73 -. China's Ministry of Commerce
has rejected the proposed P3 alliance on
the grounds that it will "restrict competition". P3 was to be an
alliance of three of the world's largest container carriers - Maersk Line,
Mediterranean Shipping Co and CMA CGM.
If implemented, it would have
resulted in a potential reduction
in throughput.
5) COASTAL
Announced that its wholly-owned subsidiaries, Coastal
Offshore Pte Ltd and Thaumas Marine Ltd have collectively secured contracts for
the sales of three units Offshore Support Vessels and three units tugboats for
an aggregate value of approximately RM180 million. Clinching of these new contracts
has further strengthened the Group's already sizeable order book to RM2.4
billion. Of this, the vessels sales order book constituted RM1.2 billion. The
balance order book comprised RM1.2 billion for the Group's first Jack-up Gas
Compression Service Unit charter contract for Petroleos Mexicanos.
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 31 December 2014 and 31 December 2015.
+ve the shares have been consolidating around the RM5
levels for the past 3 months, contracts for their Jack up rigs will be the
rerating catalyst to propel its shares higher proving more steady income
stream. Accumulate.
6) Market - Lack lustre performance on the KLCI to
continue with focus still firmly on oil prices. Support maintained at
1850-1860pts
