FBM30 1651.03 +7.72 points (+0.47%) Volume 812.8mil Value 1,253mil
1) KLCI ended at day's high as index edged closer to its
all-time high of 1655.5points inline with the positive regionals which rise
after U.S. manufacturing unexpectedly expanded, renewed pledge by
Federal Reserve Chairman Bernanke to
sustain record stimulus and RBA's decision to cut its cash rate by 25bps. Plantation-0.23%
was weaker after CPO futures reached a low of RM2314/MT (-6%). Market breadth
was positive with gainers leading losers 385:300. Futures closed 1656pts (4
points discount).
2) Heavyweights: AXIATA+1.38% RM6.62, DIGI+1.33% RM5.32,
MAYBANK+0.66% RM9.12, GENM+2.51% RM3.68, TENAGA+0.74% RM6.85, CIMB+0.4% RM7.59, PBBANK+0.28% RM14.42, SIME-0.6% RM9.74
3) DBT: DIALOG 20mil @ RM2.31, DBE 4.5mil @ RM0.07, FGV
2.6mil @ RM4.65 (4.5% discount)
4) Situationals:
E&O+2.44% RM1.68: The court of Appeal has rejected
the SC's appeal for the recusal of High Court judge Abang Iskandar Abang Hashim
from hearing the case brought by a minority shareholder of E&O against SC.
The court rejected as he had already resigned as the enforcement director of SC
on Oct 2009.
5) BHIC/ BOUSTEAD
Boustead today announced that its subsidiary company
Boustead Naval Shipyard Sdn Bhd , has issued a LETTER OF AWARD to the
subsidiary of BHIC, Contraves Advanced Devices Sdn Bhd in relation to the
contract for Second Generation Patrol Vessels / Littoral Combat Ships, which
was awarded to BNS by the Government of Malaysia.
The LOA awards to CAD a contract to procure, engineer and
integrate into the DCNS SETIS Combat Management System, a Combined Integrated
Communication System and Communications ESM System at a total value of RM203.8m
over an implementation period of up to ten years from 2 October 2012.
Additional it has also issued a Supplementary Letter of
Award to the same BHIC unit, in relation to the contract for Second Generation
Patrol Vessels / Littoral Combat Ships for the procurement, engineering and
integration of additional equipment and facilities for the DCNS SETIS Combat
Management System at a total value of RM305 m over the same time frame.
BHIC a 65% sub of Boustead has yet to benefit from the
significant order book that it has accumulated under the Boustead stable as it
continues to register operational cost. Thus investors will once again be skeptical
over the execution risk and likely to play a wait and see role until they turn
their bottom line numbers around.
6) Market - The KLCI will be susceptible to a downgrade
on the back of continued weakness in CPO prices (now at two year lows of
RM2331/m tn) vs consensus forecast of between RM2800-RM3000/ m tn). With the
Plantation Index still flat YTD, a likely downgrade in the sector if the
situation persists could see the KLCI dragged down as plantation stocks account
for 16% index weighting.