Thursday, December 19, 2013

Market Roundup | 18 December 2013


FBMKLCI   1847.50      -3.40pts   (-0.18%)   Volume  1.085b   Value 1.632b
 
 
1) The KLCI fell today inline with the jittery US market that closed lower overnight just before the verdict of the QE tapering overhang tonight. In the regional market, NIKKEI +2.02% continue to thrive boosted by the stronger USD against the YEN, HSI +0.32% rose albeit on cautious trading; SHCOMP -0.13% fell for a 7th straight day as money market rate jumped. In the local scene, profit taking blanketed the market after the CI rose to new high yesterday. Plantation INDEX lost the most grounds today weighed down by IOICORP -1.03%, GENP -4.04%, KLK -1.20%, KULIM -3.66% as CPO prices fell closer to the RM2,500 pmt support. Market breadth was negative with losers beating gainers by 433 : 326. Futures closed at 1843 ( 4.5pts discount).
 
 
2) Heavyweights: CIMB -1.03% RM7.64, AXIATA -1.01% RM6.80, PCHEM -1.31% RM6.74, TENAGA +0.73% RM10.94, BAT -2.44% RM63.00, PETGAS  +3.19% RM23.94, PBBANK +0.75% RM18.72, MAYBANK +0.79% RM10.10
 
 
3) DBT: ARMADA 90mil @ RM3.78 (3.07% PUC @ 5.5% discount), FARLIM 6.147mil @ RM0.435 (4.38% PUC @ 16.4% discount), THPLANT 4.61mil @ RM1.923
 
 
4) Situational:-
 
MISC -0.36% RM5.40 -MISC has entered into an agreement with Global Process Systems Inc (GPS) for the acquisition of a 20% stake in Malaysia Offshore Mobile Production (Labuan) Ltd (MOMPL) for US$18m. MISC currently owns 80% of MOMPL. GPS' principal activities are provision of engineering, procurement and construction services for the oil and gas industries, while MOMPL owns and leases mobile offshore production units.
 
 
5) TM : announced that it has today made its first issuance of IMTN of RM200 million in nominal value with tenure of 7 years pursuant to the IMTN Programme in accordance with the Sukuk Wakalah Programmes. The proceeds raised will be utilised by TM to meet its capital expenditure and business operating requirements, including for its high speed broadband services which shall be Shariah-compliant; Neutral on news. TM's 9M13 results were a positive surprise due to better-than-expected EBIT margins. But FY14 earnings growth is lacking due to the expiry of tax incentives as well as minimal room to gear up further for capital management initiatives, we think the stock lacks immediate catalysts,- Hold.
 
6) Market : The Federal Reserve decision and/or the forward guidance during their press conference on continued monetary stimulus will likely determine trading tomorrow.