FBMKLCI
1739.45 -5.88pts (-0.34%) Volume 1.239b Value RM1.380b
1) The KLCI dipped to a low of 18pts before clawing back
most of its losses to close just -5pts following the weaker Wall St on Friday
after stronger jobs report supported the case for an earlier rate hike. In the
regional markets, China stocks continue to climb as other bourses remained
tepid, SHCOMP +2.17%, HSCEI +1.43%, HSI +0.21%, while the NIKKEI -0.02%, KOSPI
-0.12% and STI -0.33% closed marginally lower. Local PLANTATION -1.27% index
was the biggest loser amongst the sectors weighed down by KLK -3.37%, IOICORP
-0.49%, BKAWAN -1.09%. Market breadth was negative as losers thumped gainers by
532 : 254. Futures closed at 1725 (14pts discount).
2) Heavyweights : KLK -3.37% RM21.74, DIGI -1.74% RM5.64,
TM -1.89% RM6.72, CIMB -0.56% RM5.30, TENAGA -0.29% RM13.36, AXIATA +1.25%
RM6.47, PBBANK +0.53% RM18.68, MISC +1.35% RM8.25.
3) DBT: BONIA
2.656mil @ RM0.90, BARAKAH 2mil @ RM0.87, SMTRACK 1.5mil @ RM0.14, EKOVEST
1.221mil @ RM1.05.
4) Situational:-
IWCITY +3.57% RM1.16 - Iskandar Waterfront City Bhd
(IWCB) will invest RM65.0m to redevelop and refurbish the Taman Bayu Tebrau
apartment project in Permas Jaya, which has been abandoned for more than 10
years ago. Johor Menteri Besar said the re-development involves 460 units of
apartments with a projected completion date of end-2017. IWCB would also
improve the building's architecture and repair any damage, as a result of being
abandoned for so long.
5) PRLEXUS : announce that on 8 June 2015, Trans Pacific
Textile (M) SB , an indirect wholly-owned subsidiary of Prolexus had entered
into three 3 Sale & Purchase Agreements with several vendors to acquire 3
contiguous pieces of freehold land with a total land size of approximately 11.159
ha, all located in Mukim Kluang, Johor for a total purchase consideration of
RM9.9m. The Group intends to fund the Acquisition through internally generated
funds and/or bank borrowings to be decided at a later stage. The Acquisition is
part of the Group's future expansion plan ; Neutral to positive. The higher
growth in sales and future orders of Group's clients like Nike augers well for
the group. Given the opportunity to ride on Nike's high sales growth, Prolexus
should expand aggressively to fulfill Nike's higher demand, expand its market
share of Nike's order but most importantly, to achieve a better economic of
scale to stay competitive among this competitive industry in the longer term.
6) Market : Domestic and external uncertainties are
expected to continue to weigh on the market. That said, it may be a good time
to nibble on selective stocks, especially those in resilient and
export-oriented sectors. Technically, the index is expected to trade sideways
in the range of 1720-1760 in the near term.
