FBMKLCI
1802.61 +3.02pts (+0.17%)
Volume 1.757 Value 1.385b
1) The KLCI continue to consolidate near 1800pts level as
index were range bound for the day to close above the 1800 after US market
closed at record high for the 2nd day after Google and MS Stanley posted
stronger than expected earnings. Regional markets were positive led by SHCOMP
+1.62% which rose the most in a week after government called for deepening
economic reforms to boost domestic consumption, HSI +0.42%, NIKKEI +0.91%, STI
+0.09% all rose in expectation of a sustainable global recovery. In the local
scene, Property index rebounded after lagging behind the surging composition
index with UEMS +3.18%, SHL+ 10.22%, UOADEV +1.32% and E&O +1.51% leading
the way. Market breadth was positive with gainers beating losers by 434 : 287.
Futures closed 1806pts (4 pts premium).
2) Heavyweights : CIMB+1.19% RM7.64, SKPETRO+2.25%
RM4.09, YTL+3.20% RM1.61, MAYBANK+0.60% RM9.99, UEMS+3.18% RM2.59,
GENTING-0.95% RM10.36, DIGI-0.81% RM4.90, FELDA-1.82% RM4.30.
3) DBT : TROP
4.15mil @ RM1.50, IJM 3.591mil @ RM5.81, DOLMITE 3.38mil @ RM0.17 ( 1.289% PUC
@ 47% discount).
4) Situational:-
BRAHIMS +0.67% RM1.49 : Brahims holding is set to
dominate the sugar market in Sabah and Sarawak by 2015 with the setting up of a
RM150m sugar refinery factory in the Demak Laut Industrial Park in Kuching. The
sugar market in Malaysia is controlled by Felda Global Ventures Holdings Bhd's
unit, MSM Malaysia Holdings Bhd, and Central Refinery Sdn Bhd, with two sugar
refineries each in Peninsular Malaysia. Brahim's subsidiary, Admuda Sdn Bhd,
has a licence from the Ministry of International Trade and Industry (Miti) to
manufacture refined sugar and molasses for Sabah and Sarawak. The licence
awarded to Admuda was the third by Miti in 37 years as sugar is a regulated
commodity.
5) COASTAL
The strong order flow that the company has been
experiencing over the past year continues as its wholly-owned subsidiaries
secured contracts for the sales of six units Offshore Support Vessels, which
comprise one unit Subsea Support Maintenance Vessel, one unit Platform Supply
Vessel and four units Anchor Handling Tug Supply for an aggregate value of
approximately RM318 million.
Including the new contracts and after adjusting for
revenue recognition from vessels delivered to buyers up to 21 October 2013, Coastal
Group has about RM1.3 billion worth of vessels sales orders awaiting delivery
to customers up to 2014.
+ve as this order book will be able to sustain the
company over the next one and a half year. Trading at an undemanding PE of 10x,
the next leg up for the company will be provided when it secures a contract for
its jack up rig. BOW.
6) Market - Maintain current rotational play with index
consolidating around current levels ahead of Budget 2014.
