FBMKLCI
1810.31 +3.56pts (+0.20%)
Volume 1.815b Value 2.097b
1) The KLCI opened lower on weaker US market but quickly
recovered some grounds to close in positive territory after China PMI rose to
51.4 in October from 51.1 previously. In the regional market, HSI +0.19% and
SHCOMP+0.37% too traded with a similar pattern, recovering from earlier losses
after the better PMI data boosts sentiments. In the local market, oil and gas
counters saw some active trading today as SKPETRO +4.25%, DAYA -2.50%, THHEAVY
+0.57% were all actively traded following the listing of UMWOG +10.714%. Market
breadth was positive with gainers beating losers by 420 : 360. Futures closed
1813 (3 pts premium).
2) Heavyweights: SKPETRO +4.25% RM4.17, GENTING +1.14%
RM10.60, CIMB +0.66% RM7.52, GENM +1.15% RM4.37, MAYBANK +0.30% RM9.79, PETDAG
+1.30% RM31.00, PBBANK -0.43% RM18.22, PETGAS-0.89% RM24.30
3) DBT : OIB 46.747mil @ RM2.50 (51.628% PUC remaining shares to be bought out by
Oriental), IRETEX 5.319mil @ RM1.75 (11.59% PUC), INARI 2mil @ RM1.35
4) Situational:-
UMWOG + 10.714% RM 3.10 - Shares of UMW Oil & Gas Bhd
rose on their trading debut after the company raised 2.36bil in Malaysia's
largest initial public offering so far this year. The company priced its IPO
shares at the top end of an indicative range of MYR2.70-MYR2.80 a share.
OIB +1.63% RM2.49 - Oriental Interest has received an
unconditional takeover offer valued at RM109.5m or RM2.50 per share from
Jupiter Sunrise Sdn Bhd, whose shareholders are involved in property
development and plantations. The offer price is at a premium of 2% over
Oriental's closing price.
5) UMW-OG - announced that Bursa Securities had on 29
August 2013, approved it's lower public shareholding spread of 22.4% as in
compliance with Paragraph 3.06(1) of the Bursa Securities LR. Upon listing of
UMW-OG, the public shareholding spread of UMW-OG is 22.67% (assuming the
over-allotment option is not exercised) - Neutral. The share price has
performed commendably on it's IPO, registering a gain of 10.7% at day's close.
Strength largely on the back of the bright prospect of the regional jack-up
rigs market; Co's strong working relationship with Petronas, fleet of young and
modern drilling rigs with strong contract backlog of RM1.5bn, strong balance sheet and explosive 3-year earnings
CAGR of 71% driven by higher asset utilisation, lower interest cost and
aggressive expansion.
6) Market: to continue its consolidation phase in the
near term with immediate support at KLCI 1800 pts. Markets are likely to track
US economic data closely for leads of when the Federal Reserve will start
tapering of its bonds buying program which is particularly sensitive for
emerging markets.