Market Roundup | 29 Oct 2012

FBM30   1672.56      +0.67 pts ( +0.04%)         Vol  1.27b           Value RM1.39b

 

1) The KLSE opened strongly, registering a new high of 1679.37 pts, before succumbing to selling pressure, drifting south through the sessions into the red before late buying closed it marginally higher at 1672 pts. There was little catalyst from abroad as the US market braced for the impact of Hurricane Sandy and HK slid on a new real estate tax. Market volume was dominated by penny stock except for ASTRO, which slid a further 2.8% . Market breath was negative, with losers edging gainers 376:331 . Futures closed 1674.5 ( 1.94 pts prem) .

 

2) Heavyweights: DRB +2.2% RM2.53, HLBANK +2.2% RM14.72, PBBANK +2.1% RM15.74, GAMUDA +2% RM3.57, ASTRO -2.8% RM2.78, MISC -1.9% RM4.20, GENM -1.7% RM3.48.

 

3) DBT: SEG 5m @ RM2.07, WINSUN 5m @ RM0.12 ( 14% prem), INTEGRAX 3m @ RM1.40

 

4) Situationals :

 Armada +2.4%: reported that Co's first FPSO to India, the US360m Armada Sterling, is ready for delivery. The market for FPSO in India is huge, as it steps up it's exploration in deepwater, shallow and marginal offshore fields to feed strong local demand, said Armada's CEO En Hassan Basma. This FPSO was chartered by India's state owned Oil and Natural Gas Corp ( ONGC) & Armada is also in the running for a second FPSO project at ONGC's cluster seven field. Cluster Seven will be announced this quarter.

 

5) DRB HICOM

PROTON a wholly owned subsidiary of the Company entered into a Collaboration Agreement with HONDA Motor Co., Ltd, a company incorporated in Japan and is one of the leading global manufacturer and distributor of motor vehicles under the brand name "HONDA".

Under the Agreement, PROTON and HONDA MOTOR will explore collaboration opportunities in the areas of technology enhancement, new product line up, platform and facilities' sharing.

 

This Agreement signifies the potential of a long-term strategic collaboration with HONDA MOTOR. Having a strong and renowned global automotive player like HONDA MOTOR as the foreign strategic partner to PROTON will provide PROTON and the DRB-HICOM Group with the opportunity to grow as an Original Equipment Manufacturer ("OEM"), as the opportunities are endless. This collaboration will provide positive impact to PROTON and the DRB-HICOM Group in the long run.

 

 +ve as this collaboration is expected to capitalize on Proton's under utilized Tanjong Malim Plant. We suspect that it could be primarily for hybrid and electric car models.

 

6) Market - Underlying strength in the KLCI remains despite weaker US and European markets recently. We still see trading opportunities in Waseong, GentMsia, Coastal.