FBMKLCI
1772.38 +6.31 pts
(+0.36%) Volume 2.54b
Value RM2.86b
1) The Index fell as much as 13.7pts at opening on
program selling of heavyweights before recovering to parity by midday and
trended higher in the 2nd half to close at day high. Investors rotated to
smaller caps and laggards such as TAGB+15%, MALTON+5%, WAHSEONG +15% and
CMSB+9.8%. The regional market is positive led by Japan's Topix Index closing
at a 4 1/2 year high on weaker yen. Market breadth over the day is generally
positive with gainers overwhelming losers by 745: 174. Futures closed 1769pts
(3 pts discount).
2) Heavyweights : YTL +6.54% RM1.79, MAYBANK +1% RM10.08,
GENTING 1.29% RM10.94, PPB +4.03% RM13.42, GENM 1.84% RM3.87, YTLPOWR 2.66%
RM1.54, HLB -1.23% RM14.42, AXIATA -0.28% RM6.93, CIMB -0.24% RM8.29
3) DBT : SANICHI 48mil @ 0.856 (11.9% PUC @ 10%
discount), SUNREIT 12.26mil @ RM1.64, DIJACOR 9mil @ 1.60 (1.04% @ 3.8%
premium)
4) Situationals:
RSAWIT +4.24% RM0.86, PPB + 4.03% RM13.42: CPO futures
breached above its RM2,300 level highest level in two weeks as stockpiles in
Malaysia, dropped to a 10-month low. Reserves fell 11% to 1.93 million tonnes
in April, the lowest level since June, according to the Malaysian Palm Oil
Board. Production edged up 3.1% to 1.37 million tonnes in April, but the yield
recovery missed expectations of 1.39 million. Exports fell just 5.6%to 1.45
million tonnes from a month ago, less than a forecast of 9%.
5) PETRA ENERGY : Co announced that Petra Resources Sdn
Bhd ("PRSB"), a wholly-owned subsidiary of PENERGY, has been awarded,
and accepted the contract to provide Offshore Crane Operations and Maintenance
for SSB/SSPC ("the Award").
The Award is subject to PRSB fulfilling the terms and conditions
stipulated in all the relevant tender documents. The contract is effective from
1 May 2013 and shall expire on 30 April 2016, with an extension option of one
(1) year subject to the approval of SSB/SSPC management and PETRONAS ; +ve, but
no contract value given. We understand that development efforts for its
marginal oilfield (Kapal, Banang and Meranti) are intact and the company is set
to accelerate its development efforts. The company's capital expenditure for
the marginal oilfield will be reimbursed by Petronas once production commences.
Re-rating catalysts are securing of major contracts under the Pan Malaysia tender
and/ or securing of sizeable EOR work partnering Baker Hughes.
6) Market: robust rotational play into laggards is
expected to continue with the blue chips consolidating their recent gains.
Stocks with potential upside are Bumi Armada, DRB, Kinsteel, LionInd,
MAS/MAS-OR, MISC, MRCB, Mulpha, Unisem.
