FBMKLCI
1635.37pts -4.10pts
(-0.25%) Volume 1.989b Value RM 1.954b
1) The KLCI was lower shrugging off the resilient US
market overnight as investors continue to tiptoe across the board. Region
bourses were mostly higher led by SHCOMP +0.92% as brokerage names rallied on
prospect of an exchange link between London and Shanghai, HSI gained +0.18%,
ASX +0.74%, while the STI -0.46% fell behind. TECHNOLOGY +0.57% index outperformed the rest of the
sectors today helped by INARI +0.90%, D&O+ 7.14%, ELSOFT +4.57% as the
Ringgit continue to weakened towards the RM4.30 resistance. Market breadth was
positive as gainers beat losers by 424 : 322. Futures closed at 1617pts (18pts
discount).
2) Heavyweights :
PBBANK -1.52% RM18.12, MAXIS -2.23% RM6.56, AXIATA -1.30% RM6.06, KLK -2.97%
RM21.54, CIMB -1.25% RM4.72, MAYBANK +1.30% RM8.52, SIME +2.31% RM7.53, IOICORP
+3.40% RM3.95.
3) DBT: IDEAL 8mil
@ RM0.40 (4.30% PUC), HWANG 1.2mil @ RM1.80.
4) Situational:-
BHIC +1.95% RM2.09 - Boustead Heavy Industries Corp Bhd
has received a RM4.8m contract to the design, construction/adaptation of
certain infrastructures of the Royal Malaysian Navy Kota Kinabalu Naval base.
The company said it got the sub-contract from Trans Resources Corp Sdn Bhd and
was formally appointed as the technical assistance and coordination services
provider on September 18. The contract was signed for a period of 12 months,
effective from Feb 1
5) JAKS
JAKS Resources Bhd has inked financial agreements with
its joint-venture partner China Power Engineering Consulting Group Co Ltd
(CPECC) and the principal financiers valued at US$1.402 billion for a
coal-fired thermal power plant project (IPP project) in Vietnam.
The agreements are part of the funding requirement for
the construction of the US$1.87 billion 25-year Build-Operate-Transfer (BOT)
2x600MW IPP project at Phuc Commune, Kinh Mon District in Hai Duong Province.
The principal financiers are Industrial and Commercial Bank of China and China
Construction Bank Corporation and Export-Import Bank of China. The IPP project
will be funded on an intended capital structure of approximately 75 per cent
debt and 25 per cent equity according to the company..
JAKS' unit JAKS Hai Duong Power Co Ltd, which is
undertaking the IPP project, has also signed a shareholders' loan facility
agreement with CPECC's unit China Power Engineering Consulting Group (Hong
Kong) Investment Co Ltd to accept a term loan facility for an amount not
exceeding US$1.402 billion, representing 75 per cent of the total project cost
of the IPP project.
Recall that in Aug
there was an award of the USD1.06bn EPC contract to CPECC Consortium and
USD454m to Jaks' wholly owned subsidiary Golden Keen. This contract is expected
to kick off in 2016 over 3.5 years. The forecast margin of 20% could provide
Jaks a windfall of USD90.8m over the course of this project. After which the
IPP will continue to provide the company with a significant cash flow as the
first 10 year revenue is projected at above USD400m.
The company is well on the way in transforming from a
medium size property developer/pipe and sewage player into the big league power
plant. The major rerating will come upon its financial close expected in the
later part of Oct. Last window to accumulate, BUY.
6) Market - KLCI expected to continue to consolidate with
a negative bias with rotational play in mid cap names as investors position
portfolios for next year.
