Market Roundup | 4 Sept 2012

FBM30 1654.11      +0.21points (+0.01%)    Volume 1,335.5mil       Value     1,422.4mil      

 1) KLCI traded in a tight 3 points range as investors stayed on the sidelines while awaiting for ECB and Fed reserve's decision on its stimulus plans to shore up waning global growth. Regionals were also weaker after Moody's cut European Union's economic outlook. Penny names led by NEXTNAT-15%, INGENS-36%, UTOPIA-11% were markedly lower following recent rally as market breadth stayed negative with decliners leading gainers 440:274. Futures closed 1648.5pts (5.5 points discount). 

 

2) Heavyweights: GENM+1.71% RM3.57, AXIATA+0.32% RM6.22, YTL+1.09% RM1.86, PETGAS+0.42% RM19.26, AIRASIA+0.87% RM3.50, CIMB-0.64% RM7.82, TENAGA-0.59% RM6.80, PPB-1% RM13.86

 

3) DBT: GLOTEC 16.5mil @ RM0.075, ZECON 3mil @ RM0.45, HUBLINE 2.7mil @ RM0.07 (7.7% premium)

 

4) Situationals: 

PERDANA+2.1% RM0.73: Share price rose after announced that they had entered a MOA with Nam Cheong for the acquisition of two 100 metre accommodation and work vessels at a total of RM183mil. The acquisition is expected to be completed by 2QFY13.

 

Zelan+1.35% RM0.375: Share price rose after ZELAN received a sizable contract in Johor worth RM215.25mil. The job covers the engineering design and construction works for the development of Tanjung Bin's 1 x 1,000MW coal fired plan project in Johor. Job scope covers cooling water intake, cooling water filtration and pump station, and offshore water discharge culverts. This is the 2nd contract awarded by Mudajaya and is set to commence on Sept 3, 2012 with expected completion by mid-august 2014.

 

5) TIMECOM

Competition for broadband subscribers continues to heat up with TimeCom's latest offering of 100Mbps Home Broadband via their fibre optic network at RM179/mth. This compares favorably to TM's 20Mbps package at RM249/mth. Expect other players to cut current rates as focus for the telcos now are in this market space.

 

6) Market - Tight trading range to be maintained ahead of ECB meeting and FOMC next week as some form of easing has already been priced into the markets, evident from the recent rally.