FBMKLCI
1795.83 -16.47pts (-0.96%) Volume 1.999b Value RM2.259b
1) The KLCI dipped 0.96%, closing below the 1700 level
despite the stronger US market overnight which gained following reports that
Greek PM has proposed an interim financing until end of July. Region bourses
were broadly lower as SHCOMP -5.90% & HSI -5.84% fell sharply, leading
HSCEI -6.09%, ASX -2.00%, NIKKEI -3.14%, STI -1.91% into the red. Local CI was
also sold down with TECHNOLOGY -2.63% index leading the rout, dragged down by
GTRONIC -6.36%, INARI -2.36%, JCY -2.98%. Market breadth was largely negative
as loser towered over gainers by 828 : 117. Futures closed at 1670.50 (25points
discount)
2) Heavyweights : CIMB -2.75% RM5.30, AMBANK -6.14%
RM5.35, IOICORP -3.30% RM4.10, DIGI -1.80% 5.45, GENTING- 1.86% RM7.88, AXIATA
-1.09% RM6.31, GENM -2.09% RM4.20, IHH +2.08% RM5.87.
3) DBT: XINQUAN 3mil @ RM0.42, GSB 2.5mil @ RM0.08,
KPOWER 2mil @ RM0.50.
4) Situational:-
ARMADA -3.63% RM1.06 - Bumi Armada Bhd's wholly-owned
unit, Armada Kraken Pte Ltd, has secured a syndicated term loan facility and a
standby letter of credit facility of USD755.0m (RM2.9b). The the facility was
to refinance the existing bridge loan obtained in 2014. The lenders of the new
facility are Export-Import Bank of Malaysia Bhd, Maybank International,
National Bank of Abu Dhabi PJSC, Oversea-Chinese Banking Corp Ltd, RHB Bank
Bhd, Sumitomo Mitsui Banking Corp and The Bank of Nova Scotia.
5)MRCB : announced that its wholly-owned subsidiary, MRCB
Engineering Sdn Bhd (MESB) had on 7 July 2015 entered into a Joint Venture and
Shareholders' Agreement with Hicom Builders Sdn Bhd (HBSB) and Dekad Kaliber
Sdn Bhd (DKSB) for the purpose of setting up a joint venture company to
undertake the construction of the ICQS ( Integrated Immigration, Customs,
Quarantine and Security Complex). The complex is located at the northern end of
the North-South Expressway. To recap, the Government of Malaysia had entered
into a Concession Agreement with Northern Gateway Infrastructure Sdn Bhd
(NGISB) on 30 December 2011, where NGISB has been granted the right to design,
finance, develop and construct a new ICQS building on the existing Bukit Kayu
Hitam. NGISB via its Letter of Award dated 28 May 2012, had appointed
Zelan-Kiara Teratai JV (ZKTJV) as the main-contractor for the ICQS Project.
ZKTJV, in turn, had on 7 July 2015 awarded the contract for the construction of
the ICQS to DKSB for a contract sum of RM310 million. Upon execution of the
sub-contract agreement between DKSB and ZKTJV, and the tripartite agreement
between DKSB, NGISB and ZKTJV, the shareholding structure of DKSB will be as
follows: MESB 51%, HBSB 49% ; +ve, the joint venture will enable MESB and HBSB
to pool their resources and expertise to undertake the ICQS Project. The Board
believes that the Joint Venture represents a good opportunity to further
strengthen the future income of MRCB Group.
6) Market : We expect trading to remain cautious, given
the weakening MYR, on-going 1MDB saga, declining crude prices and the Greek
debt crisis. With the lack of any meaningful catalyst, the KLCI is poised for
further near-term consolidation within the 1670-1720 points range.
