FBMKLCI
1829.73 +5.41pts (-0.30%)
Volume 1.814b Value 1.852b
1) The KLCI rebounded following the significantly
stronger US market after the Fed minutes indicated possible delay in interest
rate hikes to further spur growth. In the regional market, bourses were also
significantly stronger following the bullish sentiments from the West as HSI
+1.17% rebounded after the index gauge traded at only 10.8x PE, SHCOMP +0.28%,
ASX +1.06%, STI +1.08% all gained. In the local scene, TECHNOLOGY +2.32% and
PLANTATION +1.34% names outperformed the CI today boosted by names such as
INARI +3.07%, GTRONIC +2.92%, CENSOF +11.76% & IOICORP +1.89%, KLK +2.43%,
FGV +2.04% respectively. Market breadth was positive today as gainers thumped
losers by 609 : 266. Futures closed at 1831 (1pts premium).
2) Heavyweights : IOICORP +1.89% RM4.84, KLK +2.43%
RM21.04, GENM +1.73% RM4.11, YTL +1.80%, MAXIS +0.77% RM6.47, FGV +2.04%
RM3.49, BAT +1.27% RM67.00, MAYBANK
-0.40% RM 9.85.
3) DBT : DIALOG 2mil @ RM1.70, PENTA 1.322mil @ RM0.365
(6.5% discount)
4) Situational:-
SEACERA +6.93% RM1.08 - Seacera Group Bhd announced it is
successful in its submission to prequalify for the bidding process for the
proposed Warisan Merdeka project. Seacera, Sinohydro Corp Ltd, Shanghai
Construction Group Co Ltd and SPAZ Sdn Bhd had signed a memorandum of
understanding on June 6 to form a joint venture to bid for the project. The JV
was formed to jointly prepare and submit a response to the prequalification and
bidding for the proposed project in the Financing plus Engineering, Procurement
and Construction modes.
IREKA +1.43%
RM0.705 - Ireka Corp Bhd has bagged a RM276.79 million contract from KL Eco
City Sdn Bhd for the construction of a mixed development project. The job for
the construction of retail podium, office block main buildings and basement
levels is for a mixed development project located in Bangsar. The project is a
joint venture between Kuala Lumpur City Hall and KL Eco City. Work is to start
on Oct 15, 2014 and completed in 29 months.
5) SARAWAK CABLE announced that they had on 9 October
2014 received a Letter of Award from Shanghai Electric Group Co. Ltd, the main
contractor of 2 x 300MW Balingian Coal-Fired Power Plant for Power Island
Engineering, Procurement & Construction Works (“the Project”), for the
local portion of the Project Works for a contract sum of RM493m. The contract
sum is provisional and subject to final scope of work and bill of quantities
for the required Local Contents in accordance with the Main Contract. The Date
of Commencement of the Project shall be on 28 November 2014 with a completion
period of 40 months ending on 27 March 2018.
The award of this Project is a positive surprise and will
contribute positively to the earnings and net assets of Sarawak Cable for the
FY 2015, 2016, 2017 & 2018. Sarawak Cable is a leader in the supply of
power cables in Sarawak state & recently with the acquisition of its
competitors, Universal Cable & Leader Cable, the co has also become the
leading cable player in West Malaysia.
6)Market: bearish sentiments will likely continue although the receding
fears of earlier than expected US interest rate hikes will increase liquidity,
and strengthen emerging markets & their currencies. Trading is also likely
to be affected by Budget Day tomorrow which has a tendency to sell down towards
the end of the day on disappointment to expectations, or a buy-on-rumour &
sell-on-news phenomenon.
