FBM30 1573.60 +2.20 points (+0.14%) Volume 1,805mil Value 1,510mil
1) KLCI was marginally higher bucking the regional trend. Regionals were weaker led by HSI-1% and STI-0.6% after US industrial production for Feb missed estimates and falling home prices in China could signal a slowing Chinese economy. Local market was lightly traded with broader market turning negative as decliners led gainers 434:319. Futures closed 1572.5
(1 point discount).
(1 point discount).
2) Heavyweights: TENAGA+2.04% RM6.49, PETGAS+2.50% RM16.40, YTL+1.73% RM1.76, PBBANK+0.3% RM13.64, ARMADA+3.88% RM4.28, HLBANK+1.52% RM12.00, MAYBANK-1.02% RM8.72
3) DBT: CONNECT 8mil @ RM0.115 (5.1% PUC, 17.8% discount), SUNWAY 7.9mil @ RM2.60 (2.2% discount)
4) Situationals:
EPMB-13.84% RM0.965: Share price was lower after the company resumed trading following announcement that EPMB will pay RM1.7bn for its proposed acquisition of the 26km Maju Expressway.
RCI+17.71% RM2.06: Share price rose after MFCB served a takeover notice
on its 60.43% subsidiary Rock Chemical Industries to acquire the remaining shares at RM2.10. RCI board of directors does not intend to seek any alternative offer.
on its 60.43% subsidiary Rock Chemical Industries to acquire the remaining shares at RM2.10. RCI board of directors does not intend to seek any alternative offer.
5) BOUSTEAD/ BHICToday announced that a subsidiary company of BHB has obtained facilities of up to RM2,060 Million ("Phase 1 Facilities"), which are part of the overall Syndicated Facilities totaling up to RM5,565 million for the construction of 6 2nd Generation Patrol vessels from MINDEF.
The Phase 1 facility consists of Advance Payment Bond (RM500m), Letter of Credit/Revolving Credit Facility (RM850m), Term loan (RM240m) and Islamic Tranche (RM470m). Phase 2 facilities consist of LC/RC (RM1205m), Islamic Tranche (RM2300m).
The Syndicated facilities will be for the utilization of BNS whilst the LC facility will be utilized by BHIC and Boustead Penang Shipyard.
Shipyard. Phase 2 Facilities of up to RM3,505m are still in on going negotiations.
Shipyard. Phase 2 Facilities of up to RM3,505m are still in on going negotiations.
+ve as the Heavy Industry division which barely contributed to group
earnings last year is expected to see a recovery with margins in the vicinity of 15% on the back of the new contacts.
earnings last year is expected to see a recovery with margins in the vicinity of 15% on the back of the new contacts.
6) Market - Rotational play to be in focus. MISC rebounding off recent lows of RM5.01, current rebound could see an immediate target of RM5.50 before testing the RM6.00 levels. BOW