FBM30 1624.94
+1.03 points (+0.06%) Volume
978.7mil Value 1,710mil
1) KLCI surged and reached a high of 1630.57 (+6.66pts)
in early trading following comments by ECB president Mario Draghi that ECB will
do whatever was necessary to protect the Eurozone from collapse, raising
expectations it will provide solution to tackle the escalating borrowing cost.
Index however drifted lower and was in negative territory by midday before mark
ups at auction of BAT, PETDAG and GENTING ensured market close positive. Market
breadth was positive with gainers edging losers 396:365. Futures closed
1623.5pts (1.5points discount).
2) Heavyweights: TM-1.39% RM5.66, MAXIS-2.14% RM6.40,
PPB-1.30% RM15.20, ARMADA-2.53% RM3.86, BAT+4.35% RM61.94, AXIATA+0.69% RM5.80, GENTING+0.99% RM9.20, IOICORP+0.38% RM5.30
3) DBT: MAXIS 375mil @ RM6.28 (5% PUC, 1.9% discount,
Share sale by Maxis Communication Bhd), SUNWAY 10mil @ RM2.28, FFHB 4.3mil @
RM0.16 (5.2% PUC)
4) Situationals:
INTEGRA+6.57% RM1.46: Share price rose ahead of midday
announcement where Lekir Bulk Terminal Sdn Bhd (LBT), a subsidiary of
Integrax has entered into a new jetty terminal usage agreement (JTUA - M4) with
TNB Janamanjung Sdn Bhd for the provision of handling services by LBT for the
import of coal for the new 1,010MW coal fired power plant located at Pulau
Lekir 1, Telok Rubiah, District of Manjung in Perak for an initial period which
will expire on 30 March 2040. The M4 power plant is expected to commence on 31
Mar 2015.
5) INTEGRAX / TENAGA
Tenaga Nasional Berhad
announced that TNB Janamanjung Sdn. Bhd., signed a new jetty terminal
usage agreement with Lekir Bulk Terminal Sdn. Bhd. ("LBT"), a
subsidiary of Integrax Berhad in relation to the new 1 X 1010 MW Manjung
Coal-Fired Power Plant, which is expected to be completed and fully
commissioned by March 2015.
The Agreement is for LBT to procure and appoint a
reputable contractor to undertake the design, engineering, procurement and
construction of an approximately 80-tonne grab bucket unloader, feeder
conveyors and its associated equipment and structures and to provide import
handling and delivery services of the coal for the New Power Plant. With the
signing of the Agreement, LBT is expected to deliver approximately 3,000,000
metric tonne of coal per annum to the New Power Plant.
The obligation of LBT for the above services shall
commence on 1 February 2014 and the Agreement shall expire on the 25th
anniversary of the commercial operation date of the New Power Plant which is
scheduled on 31 March 2015.
+ve and more significant to Integrax as this would boost
LBT's throughput by 50% from 6m tonnes currently. The company
has also expressed its desire to resume talks with Brazilian company Vale to
help develop Lumut Port. HOLD
6) Market - Current rotation into mid caps could see
possible renewed interest into POS Malaysia which is reorganizing its business, currently trading at only 10x
PE and 6% yield, we rate this stock a BUY.