Market Roundup | 6 May 2015

 FBMKLCI   1820.97   -6.45pts
(-0.35%)      Volume 1.920b   Value RM1.795b

 

1) The KLCI fell to a low of 1813.01 (-14.41pts) before settling at -6pts at close following the weaker US market overnight as investors weighed on mixed domestic data and Grexit concerns. Region was negative as SHCOMP erased earlier gains to close -1.62% despite better HSBC PMI services data, ASX fell -2.31% weighed by weaker quarterly results and banking heavyweights, HSI -0.41%, KOSPI -1.30%, STI -0.33% all closed lower as well. In the local scene, O&G names continue to climb following stronger WTI prices over night as SKPETRO +2.55%, YINSON +1.03%, KNM +3.84%, BARAKAH +2.80%, ARMADA +3.22% outperformed. Market breadth was negative as losers beat gainers by 454 : 353. Futures closed at 1816.5 (4pts discount).

 

2) Heavyweights : PCHEM -2.83% RM5.83, MISC -3.03% RM8.62, PBBANK -0.51% RM19.36, TENAGA -0.56% RM14.20, AXIATA -0.73% RM6.75, KLK -1.78% RM22.00, CIMB +1.01% RM5.95, SKPETRO +2.55% RM2.81

  

3) DBT: STEMLFE 15.893mil @ RM0.40 (6.42% PUC, 8% discount), CICB 14.649mil @ RM0.90 (32.00% PUC), ASIAPLY 14mil @ RM0.45 (15.92% PUC, 15% discount), TROP 9.7m @ RM1.03 (5.5% discount)

 

4) Situational:-

TUNEINS  +0.55% RM1.80 - Tune Ins Holdings Bhd is acquiring a majority stake in Indonesian insurer PT Asuransi Staco Mandiri (ASM) for about RM22.8m. The insurance products manager yesterday entered into two agreements  with selling shareholders of ASM, which will see it owning a controlling interest or a 50.0%-plus-one-share equity interest in ASM. Having a foothold in Indonesia fit in well with the group’s strategy to be a leading digital insurer in Asean, said Tune Ins chief executive officer.

 

5) SIME/ IHH

 

IHH Healthcare Bhd and Sime Darby Bhd.’s medical venture have been linked to a Malaysian hospital owned by Health Management International Ltd. Apparently the two companies submitted first-round bids for the

Mahkota Medical Centre in the state of Malacca. Health Management, which is listed in Singapore, is working with Credit Suisse Group AG to sell the hospital for about S$250 million. The hospital provides specialist services including chemotherapy day care and in-vitro fertilization, drawing more than 287,000 patients last

financial year. Revenue at the 266-bed Mahkota, which opened in 1994, rose 11 percent to 212 million ringgit in the year through June 2014.

+ve but will largely depend on the final pricing for the asset which looks likely to be at a significant premium.

 

6) Market: Firmer footing of oil prices in recent weeks should see bargain hunting to return to battered down O&G names whose business model remain unscathed. One of our favourites that fit the bill is Barakah currently trading at 91.5c or 9.7x PE 2015 and likely to continue to win further maintenance contracts.