FBMKLCI
1769.21pts -2.68pts (-0.15%)
Volume 1.247b Value RM2.103b
1) THE KLCI was firmer touching a high of 1776.07
(+4.18pts) before succumbing to selling pressure in line with global market
sentiment which remain cautious after China's non-manufacturing PMI fell to the
53.9 from 54.3 and Portugal's foreign minister resigned stoking concern
Eurozone crisis could escalate. Oil prices rose on fears that the Egypt crisis
could disrupt oil supplies. Banks bucked the trends with Finance sector +0.3% led
by MAYBANK+0.6%, AMBANK+1.6% and AFG+2.4%. Market breath was skewed towards the
negative end with losers just beating gainers slightly at 385 : 339. Futures
closed 1770 (1pt premium).
2) Heavyweights : GENTING -1.57% RM10.04, GENM -2.76%
RM3.87, SKPETRO -0.99% RM4.01, UEMS -2.64% RM2.95, ASTRO -2.30% RM2.98, MAYBANK
+0.58% RM10.46, AMBANK +1.59% RM7.64, IOICORP +0.55% RM5.45.
3) DBT : UEMS 1.24mil @ RM2.9840, CWORKS 1.238mil @
RM0.205 (1.13% PUC), XOX 1mil @ RM0.10 (35% discount)
4) Situational:-
KPS +11.49% RM1.65, PUNCAK +14.17% RM 2.18 - News
reported federal government has agreed to Selangor acquiring all four water
concessionaires in the state by the end of the year. Mentri Besar Tan Sri Abdul
Khalid Ibrahim was quoted that he has received a letter from Prime Minister
Datuk Seri Najib Abdul Razak agreeing to the deal.
5) CBIP : Co announced that Modipalm Engineering Sdn Bhd,
a wholly-owned subsidiary of CBIP, has accepted the Letter of Award dated 2
July 2013 from Kemabong Sdn Bhd for a Continuous Sterilization palm oil mill
project for its Sepang Palm Oil Mill in Kunak, Sabah. It's a turnkey
construction of a 45 tonnes per hour palm oil mill worth RM40.5m ; +ve, this
contract win coming so soon after the RM35m award from PT Astra Agro last month.
CBIP is expected to receive RM350m-RM450m worth of construction contracts in
FY13F versus about RM280mil in FY12. The award is expected to contribute
positively to the earnings of CBIP for FY2013/14. We continue to like group for
its undemanding valuations and proven track record in the mill construction
industry. Dividend yield is decent at c4.5% for FY14F supported by free cash
flows of c6.6 sen/share. Balance sheet is clean, as reflected in the net cash
position of RM170.5mil as at end-FY12.
6) Market: The
current correction is expected to continue as Bursa will not be unscathed by
the tendency to reduce risk as geopolitical risk heightened & pushed up oil
prices, and further signs of slowing economic growth from the key emerging
countries of China, Brazil & India.
