Market Round Up | 14 March 2012

FBM30 1564.02  -0.73 points (-0.05%)        Volume 1,163mil               Value 1,471mil     


1) KLCI ended mixed paring its earlier gains as market continued to underperform the regionals which rose ahead of FOMC meeting tonight and on optimism euro-area finance chiefs will complete a second Greek bailout. Index rose to a high of 1569.15 (+4.40pts) before drifting lower and close in negative territory after TENAGA-2% was sold down in late trading. Broader market stayed negative with losers leading gainers 469:288. Futures closed 1565.5 (1.5points premium).
    
2) Heavyweights: TENAGA-2.02% RM6.32, PBBANK-0.58% RM13.66, CIMB-0.41% RM7.26, HLBANK-0.33% RM12.10, PCHEM+2.13% RM6.70, MAYBANK+0.46% RM8.69, AXIATA+0.40% RM5.06, GENM+1.04% RM3.88

3) DBT: SERSOL 5.3mil @ RM0.395 (5.5% PUC, 23% discount), OLDTOWN 2.5mil @ RM1.25 (3% discount)

4) Situationals:
SIGGAS+2.52% RM0.815: SIGGAS has entered into a 60:40 JV agreement with Japan based Iwatani Industrial Gas Pte Ltd for the production and supply of liquid products and compressed gases to customers in Sarawak. The JV allows both parties to be strategic business partners in the setting up of the facilities in Samalaju Industrial Park in Bintulu.

5) Ramunia: has announced that it's wholly owned subsidiary Ramunia Fabricators SB (RFSB) has received a LOA from Aquaterra Energy Ltd for the fabrication of Wellhead Support Structures, consisting of 2 subsea structures & 1 topside structure and a boat landing facility for the West Desaru Project. A formal contract shall be executed within 45 days from the date of the LOA, or such extended period as may be mutually agreed by the parties. The contract value is RM23.6m and the target load out date of the works is 31 July 2012; +ve, contract to contribute positively toward earnings for FY12/2012. To recap, with regards the classification of Ramunia as a PN17 company, Bursa has via it's letter dated Jan 19, 2012 approved the regularization plan submitted on July 13, 2011.

6) Mkt: to continue its consolidation/correction pattern on fears of an early general election. The KLCI index has breached its SMA20 (an important support during this uptrend) for 2 consecutive days. Any further weakness from here would mean a longer and deeper correction, which will also test the critical 1550/49pt levels.