Monday, September 9, 2013

Market Roundup | 6 September 2013


FBMKLCI   1723.80  +2.83pts  (+0.16%)   Volume  1.098b   Value 1.449b
 
1) The KLCI traded sideways  in the positive region thruout the day to close 2.8pts above parity. This is inline with the US market that closed higher behind better jobs data and anticipation of a better unemployment number tonight.  In the region, bourse were mixed with NIKKEI -1.45% falling after the yen strengthen against the dollar; while SHCOMP +0.83% and HSI +0.10% gained behind optimism from the West. In the local market, Plantation index rose +0.42% ahead of the rising CPO prices recently, stocks that boosted the index were IOICORP +0.94%, KLK +0.28%, UTDPLT +1.14%. Market breadth was skewed slightly towards the positive as gainers edge pass losers by 352 : 339. Futures closed 1711.5 pts (12pts discount).
 
2) Heavyweights : MAYBANK +1.21% RM10.00, PBBANK +0.46% RM17.40, GENTING +0.96% RM9.39, CIMB +0.55% RM7.19, IOICORP +0.94% RM5.35, IHH +1.47% RM4.12, PCHEM -0.15% RM6.50, SKPETRO -1.68% RM3.51
 
3) DBT : SCICOM 25mil @ RM0.49 (8.44% PUC), AMBANK 13.5mil @ RM7.46, SCOPE 6mil @ RM0.30 (1.199% PUC @ 27.6% premium).
 
4) Situational:-
 
FABER +1.25% RM2.43 - Faber Group Bhd's board has accepted UEM Group's sale of the latter's entire stake in Opus Group Bhd and 100% of Projek Penyelenggaraan Lebuhraya Bhd (Propel) in a RM1.15bil deal.
 
5) MMC
Has decided to allow the approval of the SC for the Proposed Listing of Malakoff which is valid until 6 September 2013 to lapse.   Accordingly, Malakoff intends to submit a new application in relation to the Proposed Listing to the relevant authorities after taking into consideration several developments since the deferment of the implementation of the Proposals in May 2013. Such developments include, amongst others, the acquisition of Meridian Wind Macarthur Holdings Pty. Ltd. which has an indirect 50% participating interest in the unincorporated joint venture of the Macarthur Wind Farm, Australia, the largest wind farm in the Southern Hemisphere, with a generation capacity of 420 MW and the positive progress of the ongoing maintenance works at the Tanjung Bin power plant which are expected to be substantially completed by the second (2nd) half of 2013.
This move has been largely expected and the tentative dates are targeted towards 1H 2014. With no short term catalyst and high gearing now to persist, the company will struggle in an environment where rates are expected to rise. Trim.
 
6) Market - With the country's credit worthiness now continually scrutinised, the current trend of weakening ringgit and rising bond yield (10 yr up to 3.92%) will persist with global investors finding better alternatives else where. All eyes will crucially be set on the 2014 Budget scheduled in Oct to address these issues hence market to trade sideways at best in the short/medium term.