FBMKLCI
1735.63 +6.58pts (+0.38%) Volume 1.224b Value RM1.546b
1) The KLCI
rebounded today helped by core bluechips, CIMB, TM, PPB following the strong
rebound in global oil prices & local currency. Region bourses were negative
after MSCI delayed the inclusion of China's A-shares into its emerging market
index, HSI -1.12%, SHCOMP -0.15%, HSCEI -1.77%, NIKKEI -0.25%, KOSPI -0.62% all
closed lower while the STI rebounded on stronger finance names. CONSTRUCTION
+0.76% index was the biggest gainers amongst the sectors as GAMUDA +1.63%, WCT
+2.58%, EKOVEST +2.97%, KEURO +2.00% gained. Market breadth was negative as
losers beat gainers by 417 : 357. Futures closed at 1732 (3.6pts discount).
2) Heavyweights : CIMB +2.09% RM5.35, TM +2.72% RM6.78,
TENAGA+ 0.75% RM13.30, PPB +3.00% RM15.10, HLBANK +1.90%$ RM13.90, SKPETRO
+1.55% RM2.62, MAYBANK -0.65% RM9.16, SIME -0.81% RM8.53.
3) DBT: EKOVEST
11.008mil @ RM0.95 (1.28% PUC,8.6% discount), KRETAM 10mil @ RM0.36, BARAKAH
1.2mil @ RM0.90, YINSON 500k @ 3.10 (4.8% discount).
4) Situational:-
TGOFF +4.21% RM0.495 - Oil & gas services provider,
Tanjung Offshore Bhd secured a RM250mil contract to provide topside maintenance
to Petronas Carigali Sdn Bhd's platforms in Sarawak. It said the construction
work request contract would involve the maintenance for Petronas Carigali's
offshore and onshore facilities in Sarawak. The contract is for two years with
an option to extend for another year.
5) BSTEAD : announced that Boustead Curve SB (BCSB) had
on 10th June 2015 entered into a Sale and Purchase Agreement with Phamaniaga
Logistic SB (PLSB) in relation to the proposed disposal of a leasehold property
comprising a warehouse & an office in S15, Shah Alam for a cash
consideration of RM32.32m ( inclusive 6% GST). BCSB is a indirect wholly-owned
subsidiary of Boustead while PLSB is a wholly-owned subsidiary of Pharmaniaga
Berhad. The land measures 11,762 sqm. The Proposed Disposal will generate a
gain on disposal of RM16.5m at the company level of BCSB. However the gain on
disposal is eliminated at the group level of BHB. The proceeds from the
Proposed Disposal are expected to be utilised for working capital; Neutral -
The property has been let to PLSB for the last three years and in line with
Pharmaniaga's expansion plans, it would be more prudent to own the Property in
order to increase efficiency and to reduce costs of operations for Pharmaniaga.
BCSB in turn,would realise cash inflows from the proposed disposal.
6) Market : The low trading volume, coupled with
uninspiring technical readings suggest that buying interests are largely
subdued with limited signs of rebound for now. We expect that the key index is
likely to continue its sideways trade within the range 1720-1760 in the short
term. Focus to remain on export-oriented companies, namely rubber gloves,
furniture, selective packaging related counters that will benefit from the
strengthening of the USD against MYR.
