FBM30 1557.15, +6.66 points (+0.43%), Volume 2,265.9mil, Value 1,941.9mil
1) KLCI was firm thoughout the day, in line with the regional bourses as it tracked strong gains on Wall Street on robust US economic data (jobless claims fell, housing starts rose), while expectations grew that the ECB's plans to swap its Greek debt holdings for new bonds once debt-restructuring negotiations are complete. Second-liners and small-cap stocks continue to attract interest with PDZ+23.5%, GPA+16.7%, GOCEAN+15.4% whereas TENAGA+1.8% (stk was highlighted in this morning's stk call) was in the limelight on news that the recommended price of natural gas is being finalised and is scheduled to be presented to the cabinet by the end of March. Broader market was +ve with gainers thrashing losers 511:304. Futures closed 1560.5 (3point premium).
2) Heavyweights: TENAGA+1.8% RM6.11, MAYBANK+0.7% RM8.56, GENTING+1.1% RM10.64, SIME+0.5% RM9.59, PBBANK+0.4% RM13.70, AXIATA+0.6% RM5.01, CIMB+0.4% RM7.28, PETGAS+0.8% RM16.50, DIGI-0.2% RM4.02.
3) DBT: PERISAI 50mil @ RM0.88, ASIABIO 9mil @ RM0.07, DAYA 7.5mil @ RM0.20
4) Situationals:
UZMA+5.8% RM2.01: Share price rose after company secured a contract worth about RM350 million from Petronas; the company said in an exchangefiling Thursday the contract to provide well testing equipment and services will be effective from April 2012 to March 2017. The contract is the company's largest ever since its 2008 listing and may help to extend earnings visibility to about five years;
5) Sarawak Cable: announced that the MOU between Sarawak Cable (SCB),Sinohydro Corporation (M) SB & KEC International Ltd in relation to the proposed development of the Transmission Lines in the State of Sarawak together has been terminated. As such, the parties will not be submitting the proposals on the project together.
Comments:-ve but SCB is seen to be the front runner for Sarawak's 500kV backbone line(which spans 600km connecting Bunut to Kuching costing up to RM1.5b) and has a competitive edge as it remains the only integrated transmission line specialist especially in suppling of power cables up to 500kV. Co remains a direct play on Sarawak's rising Energy capex spending especially on transmission lines. Imminent outstanding projs to be awarded include Samalaju Industrial Park area. Buy on weakness.
6) Mkt - bullish uptrend remains intact on +ve US econ numbers and optimism Greece is closer to getting its crucial 2nd bailout. Track FYE11 Results announcements next wk will set the tone for selected stks and mkt. Continue to advocate buying on weakness. Stks at Buy lvls: TNB, UEMLAnd, MRCB, KEuro, Faber, MAS, Pos, DRB