FBMKLCI
1698.92 +0.93pts (+0.05%) Volume 1.617b Value RM 1.582b
1) The KLCI closed flat for a 3rd session despite the
stronger US market which climbed for a 5th straight session after Fed reserved
offered no signs of a rate hike until September amid solid job gains and a decline
in unemployment. Region was mixed with NIKKEI
+1.08% and ASX +0.81% closing in the green while HSI -0.49%, SHCOMP
-2.20%, HSCEI -1.21%, STI -1.05% lost grounds. CONSTRUCTION index --1.11% lost the most grounds after a recent
rally as GAMUDA -2.91%, IJM -0.89%, WCT -0.71%, MITRA -1.00%, PRTASCO -1.13%
weighed the index down. Market breadth was negative with losers beating gainers
by 401 : 383. Futures closed at 1701pts (1pt premium).
2) Heavyweights : SIME +2.13% RM8.60, WRPTS +4.50%
RM4.18, ASTRO +2.37% RM3.02, CIMB -1.70% RM5.20, MAYBANK -0.77% RM8.99, IOICORP
-1.18% RM4.18, GENM -1.19% RM4.15, TM -0.91% RM6.49.
3) DBT: IDMENSN
7.5mil @ RM0.125 (1.51% PUC), APPASIA 3.752mil @ RM0.18 (1.33% PUC), HARTA 1mil
@ RM8.60.
4) Situational:-
TAGB+3.17% RM0.325: Company plans to launch 2nd phase of
its residential property development in Sydney, Australia, next month with a
gross development value of AUD160.0m. This phase would comprise 179 apartment
units with construction expected to begin next year and completed in 24 months.
The 1st phase units were completely sold out and would be handed over to the
owners in the first quarter next year.
5) YINSON : announced that Yinson Heather Ltd
("YHL"), an indirect wholly-owned subsidiary, had on 30 July 2015
entered into a Joint Venture Deed with Four Vanguard Servicos E Navegacao LDA (
FVSN - subsidiary of Premuda S.P.A.)to establish a joint venture company for
the purposes of acquiring a vessel owned by FVSN. The Vessel will then be used
in bidding for Floating Production Storage and Offloading ("FPSO")
projects to be leased to potential charterers. Upon completion of the JVD, the
newly established JVC will enter into a Memorandum of Agreement for the
purchase of the Vessel from FVSN at a purchase consideration EUR60m which will
be satisfied via a combination of cash EUR20.4m, 19.6m ordinary shares in the
JVC and a convertible note of
EUR20m in the JVC ("CN"). In
conjunction with the execution of the JVD, the Parties and the JVC will also
enter into a Put and Call Option Deed and a Convertible Note Deed for the
issuance of the CN ; +ve, the Proposed Joint Venture is in line with the fleet
expansion plan of the Company. The Vessel is a potential candidate for a number
of small oilfield developments in both West Africa and South East Asia. The
financial commitment of the Company under the Proposed Joint Venture shall be
funded from internally generated funds and/or borrowings, the actual breakdown
of which has not been determined at this juncture. Proposed Joint Venture is
expected to contribute positively to the future earnings of the group. We continue to like Yinson as
there is potential opportunity in Ghana as ENI has also signed an agreement
with the government to produce non-associated gas in the Gye Nyame field
nearby. This could be the next positive catalyst to the group, but it could
only be awarded possibly in end-2016. Group also does not discount the
possibility of securing another mid-size FPSO contract in end-2016.
6) Market : With no improvement in the MYR & signs of
slowdown in foreign selling, we continue to reiterate our view that the FBMKLCI
is likely to trend on a bearish-biased note. Immediate support at 1688 points.
