FBMKLCI
1744.19 +21.05pts
(+1.22%) Volume 1.315b Value RM 1.249b
1) The KLCI closed at its day high after several bluechip
names surged during auction period; this was despite the weaker US market which
fell before the weekend weighed by energy giants amid weaker oil prices.
Regions were mostly lower led by SHCOMP -1.11% after China's manufacturing for
July continues to be weak, HSI -0.90%, ASX -0.35%, STI -0.28%. TRADING/SERVICES
bluechips namely MAXIS +7.94%, AXIATA +7.53%, WPRTS +6.98%, GENTING +2.21% were
amongst the index names which advanced during auction. Market breadth was
negative with gainers beating losers by 465 : 324. Futures closed at 1721.5
(23pts discount).
2) Heavyweights : AXIATA +7.53% RM6.85, MAXIS +7.94%
RM7.20, UMW +7.20% RM10.72, GENTING +2.21% RM8.32, DIGI +1.85% RM5.50, WPRTS
+6.98% RM4.29, PETGAS +1.44% RM22.40, PCHEM +1.24% RM6.49.
3) DBT: TAKASO
10.631mil @ RM0.50 (5.20% PUC @ 10% discount), CAP 8.50mil @ RM0.30, BARAKAH
1.2mil @ RM0.98.
4) Situational:-
CENTURY +5.60%
RM1.13 - Century Logistics Holdings Bhd is in talks with parties from South
Korea and Japan looking for a strategic tie-up for access into the Malaysian
market. The deal may include equity participation by one of these foreign
parties into the Malaysian integrated logistics services provider, although it
is unclear how big a stake could be involved.
SAM +5.01% RM5.45 - SAM Engineering & Equipment Bhd
is reinvesting another USD50.0m (RM190.0m) on new machines to produce
components for the aviation sector. Over the last few years, SAM Malaysia has
bought new engines and these would require additional investment about
USD50.0m. They have just approved the purchase of four more machines and they
are also looking to hire between 250 and 300 engineers and machinists over the
next two years.
5) JAKS
Announce that JAKS Hai Duong Power Company Limited , a
wholly-owned subsidiary entered into
the following contracts to facilitate the Proposed Joint Venture:-
(i) engineering, procurement and construction
("EPC") contract with the Consortium of Southwest Electric Power
Design Institute Co., Ltd and China Power Engineering Consulting Group
International Engineering Company Ltd ("CPECIEC") (collectively,
"CPECC Consortium") ("EPC Contract 1") valued at USD1,060.5
million ; and
(ii) EPC contract with Golden Keen Holdings Limited
("GKHL"), a wholly-owned subsidiary of Jaks ("EPC Contract 2)
valued at USD454.5 million.
GKHL shall achieve Provisional Acceptance for the first
generation unit or plant no later than 42 months from the site handover date
for the first generation unit.
+ve the EPC Contract 2 will significantly boost the IRR
for this project and provide Jaks with significant cash flow during the
construction phase of the IPP. The project is expected to be completed ahead of
the 42mth schedule when Jaks will begin receiving significant recurring income
from the power plant for 25 years. BUY
6) Market - The KCLI today hit the high end of the
expected trading range on late buying in selected heavyweights particularly
telcos. These levels are unlikely to hold with the CI expected to drift back
down to thea 1720s levels where its has been consolidating with no major
fundamental change in the immediate horizon.
