FBM30 1578.36 +3.53 points (+0.22%) Volume 1,769mil Value 1,763mil
1) KLCI was slightly firmer following the positive DOW overnight as markets in the region rebounded after report showed US private sector added more jobs than expected and investors pinned hopes on Greece receiving sufficient support tonight to avoid a default. Despite the positive sentiment local market was thinly traded and traded in a tight 4pt range. Broader market turned positive with gainers leading losers 415:336. Futures closed 1578.5 (parity).
2) Heavyweights: TENAGA+0.36% RM16.78, CIMB+0.68% RM7.36, SIME+0.4% RM9.84, GENTING+0.56% RM10.80, AXIATA+0.39% RM5.14, DIGI-0.49% RM4.05, AMMB-0.8% RM6.17
3) DBT: CIMB 67.5mil @ RM7.31 (0.91% PUC), SNTORIA 10mil @ RM0.77 (2.5% PUC, 3.3% premium), RPB 5.1mil @ 0.385
4) Situationals:
ENG-0.56% RM1.78: The Major shareholders of Eng Teknologi Holdings Bhd (ENG) plans to take the company is still on going as the owner are still in talks with financiers on the funding requirements of the acquisition. However the final price could be adjusted to a level not exceeding RM2 a share.
NICORP-3.8% RM0.63: Share price fell from its high of RM0.715 after clarifying that there is no proposal from Datuk Raymond Chan to bring in new development plan into the Company as at todate, apart from the Heads of Agreement entered into with Generasi Cipta Sdn. Bhd. which was announced on 10 February 2012.
5) MISC-0.93% RM5.32: Moodys downgraded the senior unsecured issuer and debt ratings of MISC from Baa1 to Baa2 with the outlook maintained at negative. Moodys view that the company's cash flow is unlikely to materially improve over next 12-18months given the weak industry outlook.
Comments: Stk has lost 45% of mkt value since peaking at RM10 in 2007 bogged down by several industry wide issues cumulating in co recording its 1st ever loss in recent 4Q results dragged down by its tanker and chemical divisions as they struggle with lower rates and higher bunker charges. Recent selldown is exacerbated by its recent removal from FTSE Asia Pacific ex Japan index. However, track for a possible technical bounce nearer RM5 as RSI has reached 26x and its exiting of loss making liner biz may signal the start of a turnaround backed by its LNG biz.
6) Mkt - resolution of Greece's debt swap tonight will finally put to rest this uncertainty. Further improvement of US jobs data out tomorrow will provide needed confirmation for markets to continue on its uptrend. Stks at buy lvls: Dialog, Kencana, BRDB, MRCB, Coastal, MAS, Pos,Ekovest, MHB.
DISCLAIMER:
This communication (including any attachments) is intended for the addressee(s) only and may contain information/statements that are legally privileged and confidential. If you are not the intended recipient, please notify us immediately by telephone at +603 2089 1888 or by e-mail. This communication is subject to the usual hazards of Internet communication and no guarantee can be made that there has been no unauthorised interception or modification of this communication whilst in transit. Whilst every effort has been made to ensure that this communication is free from computer viruses and other malicious codes, we are unable to accept responsibility for any loss or damage caused by such elements infecting this communication.
This communication (including any attachments) is intended for the addressee(s) only and may contain information/statements that are legally privileged and confidential. If you are not the intended recipient, please notify us immediately by telephone at +603 2089 1888 or by e-mail. This communication is subject to the usual hazards of Internet communication and no guarantee can be made that there has been no unauthorised interception or modification of this communication whilst in transit. Whilst every effort has been made to ensure that this communication is free from computer viruses and other malicious codes, we are unable to accept responsibility for any loss or damage caused by such elements infecting this communication.
