FBM 1670.60
+4.96pts (+0.30%)
Volume 883.8mil Value RM1,378mil
1) KLCI recovered from its low of 1661.21 (-4.43pts) to
post gains for 3 consecutive days as index is only 9 points shy of its all-time
high on continued buying support of key heavyweights led by AXIATA and DIGI.
Penny stocks led the volume leaders and saw healthy gains in SANICHI+50%,
XOX+16% and MAS+7%. Market breadth was positive with gainers outpacing
decliners 356:273. Future closed 1673.5 (3points premium).
2) Heavyweights: AXIATA+1.21% RM6.68, DIGI+1.52% RM5.36,
MAYBANK+0.67% RM9.05, IOICORP+0.81% RM5.00, CIMB+0.4% RM7.68, BAT+1.68%
RM60.50, PBBANK+0.25% RM16.04, GENTING-0.98% RM9.09
3) DBT: PA 20mil @ RM0.11 (2.32% PUC, 15.38% discount),
HUBLINE 16mil @ RM0.065 (8.3% premium),
4) Situational:
HIBISCS+2.65% RM1.55: At EGM, shareholders approved the company's
proposed acquisition of its 50.1% interest in the VIC/P57 permit in the
Gippsland Basin and a 13% equity stake in Australian-listed 3D Oil Ltd. First
oil is expected to be obtained in the first quarter of 2015. The VIC/P57
concession area contains the discovered West Seahorse field, with contingent
resources of 5.5 million barrels of oil and prospective resources of 1.8
million barrels of oil.
MRCB+1.27% RM1.59: RAM Rating Services Bhd has revised
the rating outlook for MRCB Southern Link Bhd's debt notes totalling RM1.044bil
from negative to positive. The revision involved the Rating Watch on the C3
ratings of the company's RM845mil secured senior sukuk (2008/2025) and RM199mil
junior sukuk (2008/2027). The rating action is premised on the government's
commitment to the implementation of an interim solution to ease MRCB Southern
Link's liquidity position, pending finalisation of the proposed buyout of the
EDL by the government.
5) JETSON
Jetson Berhad subscribed additional 9,475,000 new fully
paid-up ordinary shares at par value of RM1.00 each in PJS Development Sdn Bhd
(a 51% owned subsidiary of the Company), representing 63.17% of the enlarged
issued and paid-up share capital of PJSD by way of capitalisation of amount
owing by PJSD to Jetson amounting to RM9,475,000.00. Jetson will eventually
hold 12,024,998 ordinary shares of RM1.00 each, representing 80.17% of the
enlarged issued and paid-up capital of PJSD. The principal activity of PJSD is
hostel management services. Neutral
6) Market - Closing activity and portfolio rebalancing
for next year is likely to carry the KLCI to new highs before the year end.
Trading idea, AirAsia which has dropped 8% since announcement of its exclusion
from the FTSE Bursa Malaysia KLCI
following the semi-annual review of the FTSE Bursa Malaysia Index Series. This
becomes effective 24 Dec. The sell off we feel is overdone and we advocate a
trading buy around the RM2.50 levels with an immediate upside resistance of
RM2.70.
