FBM 1613.79
+6.18pts (+0.38%)
Volume 829mil Value RM1,193mil
1) Global equities rose after new Chinese leader Xi
Jinping abolished rule limiting insurers' investments in commercial lenders and
pledged to promote urbanization in China as a key driver in boosting economic
and growth in China. Most heavyweights were positive as index closed near its
day's high. Investors will now focus on European PMI numbers for indication on
the strength of its economic recovery. Market breadth turned positive after
advancers outpaced losers 361:293. Future closed 1614.5 (1 point premium).
2) Heavyweights: GENTING+1.59% RM8.97, CIMB+0.8% RM7.54,
UMW+2.9% RM11.32, AXIATA+0.5% RM5.96, AMBANK+1.24% RM6.51, BAT+0.8% RM57.70, IHH+0.92% RM3.30, UEMLAND+2.4% RM2.13
3) DBT: NEXTNAT 12mil @ RM0.12 (2% PUC), YINSON 5.71mil @
RM1.82 (2.85% PUC, 4.2% discount)
4) Situational:
SUNWAY+0.44% RM2.31: Sunway Bhd and Iskandar Investment
Bhd have teamed up to undertake the mixed development project on several
parcels of land in Iskandar Malaysia which will have a gross development value
of RM12bil. Under the corporate exercise, Suncity's unit, Harmony Impulse Sdn
Bhd would acquire 412.75 acres of land in Pulai and 366.32 acres in Tanjung
Kupang, Johor Baru for a total of RM412.72mil.
5) TELCOS
The Malaysian Communications and Multimedia Commission
(MCMC) has announced the allocation of the much anticipated 2600 MHz spectrum
band. Eight companies allowed access to the 2600 MHz spectrum
band are Celcom Axiata Bhd, DiGi Telecommunications Sdn Bhd, Maxis Broadband
Sdn Bhd, Packet One Networks (M) Sdn Bhd, Puncak Semangat Sdn Bhd, REDtone
Marketing Sdn Bhd, U Mobile Sdn Bhd and YTL Communications Sdn Bhd. Existing service providers may use the 2600 MHz
allocation to further expand and enhance the capacity of their mobile broadband
networks to meet increasing consumer demands whilst the introduction of a new
player is expected to bring fresh ideas and innovation to the market. 4G
wholesale MVNO (Mobile Virtual Network Service) will also be offered to other
service providers that do not get access to the allocation.
Maxis who is expected to be the first to offer this
service with its launch of the I Phone 5 could enjoy first mover advantage in
the highly competitive market.
6) Market - Positives signs of the market turning for the
better can be seen from the +ve breath in the KLCI today. If China maintains
its strong bounce, this could help lead a year end rally in the region. Stocks to pick up trading at the lower end of its range
include SP Setia, P Chem, RHB Cap, TM, Sime, AirAsia.