FBMKLCI
1724.21 +6.65pts (+0.39%)
Volume 1.356b Value 1.508b
1) The KLCI bounced back following upbeat factory data
globally. Ringgit also strengthened after the government cut fuel subsidies
yesterday to reduce the country's fiscal deficit. In the regional market, HSI
+0.99% and SHCOMP +1.18% rose after China's services-sector growth indicated
expansion albeit lower m-o-m. In the local scene, trading volume and value is
still low as penny stock dominated the market, with names such as PELIKAN +40.84%,
MAS +3.17%, CSL +11.905% leading on the list of most active stocks. Market
breadth was positive with gainers beating losers by 436 : 274. Futures closed
1698 (26pts discount).
2) Heavyweights : TENAGA +3.11% RM8.94, AXIATA +1.35%
RM6.75, PBBANK +0.70% RM17.22, MAXIS +1.74% RM6.99, GENTING +0.86% RM9.38,
MAYBANK +0.30% RM10.02, IOICORP+0.55% RMM5.37, YTL +1.29% RM1.52
3) DBT : TROP 40mil @ RM1.63 (3.628% PUC), UEMS 8mil @
RM2.286 (6.3% discount), MAYBANK 7.25mil @ RM10.05
4) Situational:-
MYEG +4.42% RM1.89/ AXIATA +1.35% RM6.75 - Celcom Axiata
has entered into a 1-year MOU with My E.G. Services to jointly explore possible
business opportunities and collaboration in the areas of e-Government services
delivery and joint go-to-market for specific target market segments.
DIGISTA +8.92% RM0.305 - Digistar subsidiary Indera
Persada Sdn Bhd has inked a concession agreement with the Malaysian government
represented by the Ministry of Works to construct related works of the
Malaysian National Technology Advancement Centre at Alor Gajah, Malacca worth
RM240m. The deal will include providing asset management services. The
concession period is for 18 years. The concession is divided into three years
and asset management services for 15 years.
5) ALAM : announced that its wholly-owned subsidiary,
Alam Maritim (M) Sdn Bhd, has recently received two award letters from an
established oil and gas company for the provision of 1 unit Anchor Handling Tug
vessel ( Contract 1 ) and 1 unit straight supply vessel ( Contract 2 ). The
duration of "Contract 1" is for a primary period of 12 months with an
optional period of six months. The duration for "Contract 2" is for a
period of 12 months with an optional period of another 12 months. The total
value of the Contracts is approximately RM37 million (inclusive of the optional
periods if exercised by the Client) ; +ve & within expectations as ALAM has
guided to secure a total of RM2.5b contract sum in 2013. Expected OSV wins
include those for (i) ALAM's wholly-owned OSVs
(ii) its Inspection, Repair and Maintenance (IRM) segment; and (iii)
third-party charters for accommodation barge or platform supply vessel
contracts. For its OIC business, ALAM is looking to either secure a portion of
the upcoming Pan Malaysian Transportation and Installation project (to be
awarded within the year), or at least work on subcontract works for the main
incumbents. These 2 contracts are expected to contribute positively to the
earnings and net assets of AMRB for the financial year ending 31 December 2013
up to 2015. Trading at FY14 PER of c11x, appears attractive compared to peers'
average of 14x - Accumulate.
6) Market: Cautious range bound trading expected to
continue with the govt expected to announce additional measures to address its
deficit coupled with FOMC in mid Sept and geopolitics in the Middle East . Any
technical bounce likely to be capped at 1730 points.