FBMKLCI
1843.78 -3.52pts (-0.19%)
Volume 2.239b Value 2.303b
1) The KLCI saw choppy trading today as it closed in the
red just before the Bank Negara meeting tomorrow; this was despite the stronger
US market which rebounded overnight. In the regional scene, bourses were
generally stronger following solid gains in HSI +1.00%, SHCOMP +0.49% &
HSCEI +1.63% following after a government official said the central bank is
injecting 500 billion yuan ($81.4 billion) into the five biggest lenders to
bolster the economy. In the local market, PLANTATION -0.97% index lost the most
grounds following losses amongst heavyweights FGV -2.19%, IOICORP -0.82%,
UTDPLT -4.47% following reports from Indonesia showing a rise in CPO stock pile
for August while exports declined. Market breadth was negative as losers outpaced
gainers by 520 : 299. Futures closed at 1835 (9points discount)
2) Heavyweights : CIMB -0.98% RM7.06, GENM -2.52% RM4.24,
AXIATA -0.42% RM6.96, FGV -2.19% RM3.57, IOICORP -0.82% RM4.79, SIME +0.76%
RM9.22, MAYBANK +0.50% RM9.97, MISC +.47% RM6.89.
3) DBT : IDMENSN 47.058mil @ RM0.11 (11.916% PUC @ 15.4%
discount), KINSTEL 10mil @ RM0.22 (8.4% discount), BRIGHT 9.888mil @ RM0.50
(6.923% PUC @ 13.1% discount).
4) Situational:-
PCHEM+0.48% RM6.25 - BASF Malaysia Sdn Bhd, a
wholly-owned subsidiary of Germany giant BASF SE, sees its joint venture (JV)
with Petronas Chemical Group Bhd a key growth driver for the group in Malaysia.
The 60:40 JV between BASF and PetChem, known as BASF Petronas Chemical Sdn Bhd,
is investing USD500.0m (RM1.6b) in a new integrated aroma chemical complex in
Gebeng to produce ingredients for fragrances and pharmaceutical products. The
development of the new complex is divded in phases, with the first plant to be
operational in 2016.
5) BHIC : announced that its joint venture company,
Contraves Advanced Devices Sdn Bhd ("CAD") has today received and
accepted a LETTER OF AWARD dated 16 September 2014 from Boustead Naval Shipyard
Sdn Bhd ("BNS"), an associate company of BHIC in relation to the
contract for the work to design, construct, equip, install, commission,
integrate, test and trial and deliver 6 units of Second Generation Patrol
Vessels with Littoral Combat capabilities (Frigate Class), which was awarded to
BNS by the Government of Malaysia. The LOA to CAD awards a contract to supply
Radar Electronic Support Measure Systems ("R-ESMs") and related
services for the Royal Malaysian Navy at a total price EUR 16.96m; +ve, awarded
works are expected to have a positive impact on the earnings of the group for
FY31 December 2014 and subsequent financial years as the tenure of the Awarded
Works is long term in nature. With gross and net order books of RM10bil and
RM3bil respectively, the group is still hoping for further military orders
given the need for tighter security measures in East Malaysia following the
Lahad Datu incursion last year. But the timeline for such orders remain
uncertain given the country's current fiscal deficit- Hold
6) Market: More sideways trading with downward bias
expected. Continuing concerns that the Fed may increase interest rates,
intensified geopolitical risks against Russia and campaign to counter Islamic
State extremists and the impending referendum on the independence of Scotland
may keep investors on the sidelines. We expect the index to be range-bound
between 1840-60 points in the short term.
