FBMKLCI
1720.97 +4.21pts (+0.25%)
Volume 1.593b Value 1.656b
1) The KLCI closed higher today after the US market
reported better vehicle sales number that indicated better consumer spending
and manufacturing in the country. In the regional market, HSI +1.22% and STI+1%
were higher while SHCOMP ended in negative -0.24% as investors took profits in
trade-related stocks. In the local scene, penny stocks outperformed once again
while water related stocks were heavily traded with KPS +4.26%, PUNCAK +6% and JAKS unch. Market breadth was
positive with gainers beating losers by 462 : 212. Futures closed at 1702 (18pts
discount).
2) Heavyweights : PBBANK +0.58% RM17.34, SKPETRO +2.00%
RM3.57, MAYBANK +0.50% RM9.88, PETDAG +2.47% RM27.40, PETGAS +1.18% RM20.54,
IHH +1.50% RM4.06, HLBANK +1.59% RM14.00
3) DBT : DSONIC 17mil @ RM3.08 (12.593% PUC @ 8.1%
discount), IFCAMSC 6.753mil @ RM0.06 (1.5% PUC @ 20% discount), UEMS 3.39mil @
RM2.45.
4) Situational:-
KINSTEL +11.53% RM0.29 - Kinsteel Bhd has secured a loan
to make the RM40m repayment for its Islamic bond that is due today from the
bank that had subscribed to the bonds. This alleviates the group's financial
distress and the threat of having its bonds downgraded to junk rating. The
share placement exercise to raise RM29m to partly remunerate the RM40m bonds
has yet to be finalised.
ILB +4.42% RM1.89 - ILB has set its EGM on 23rd Sept for
the proposed shareholders approval for the disposal by IL HK of its entire
equity interest in IL ShenZhen and IL
Henan to Winfair for an aggregate cash consideration of RMB998mil
(RM533.93mil). ILB's portion of the cash proceeds will be RM347.24mil where
RM181.17mil will used for a proposed special dividend (RM1.10 per share) while
the rest will be used for other
strategic acquisition within 12 months from the date of receipt.
5) DAYANG
Today announced that DESB Marine Services Sdn Bhd a
wholly-owned subsidiary of the Company, has entered into a Shipbuilding
Contract with Shin Yang Shipyard Sdn Bhd,
for the construction and delivery of one unit of offshore accommodation
workboat by the Builder to DMSSB at a purchase price of approximately RM70.0
million.
The acquisition is expected to be completed upon delivery
of the vessel. The new vessel is scheduled to be delivered by 4th quarter 2014
and is expected to contribute positively to the future earnings and net assets
of the company for the financial year ending 31 December 2015.
+ve the additional vessel will be used for its Pan
Malaysian HUC contracts won earlier in the year. Earnings will be transparent
for the next 5 years based on this contract and should see bargain hunters
around the RM4.50 levels with a prospective PE of only 10x.
6) Market - Underlying weakness in the market persist
despite the higher close today as focus continues to be on reigning in the
budget deficit and expected inflationary pressures from current subsidy
withdrawals