FBMKLCI
1818.15 +5.43pts (+0.30%)
Volume 1.259b Value 1.392b
1)The KLCI continue to trade with lower than usual volume
as we head into the last month of 2013. The index rose on earlier trade albeit
the weaker US market overnight. In the regional market, bourses were mixed
positive after the China released its PMI numbers for the month of November
which came above consensus (51.4 vs cons 51.1) as HSI +0.66% closed higher
while the SHCOMP -0.59% retreated on profit taking. In the local market,
property stocks continue to lag behind other sectors losing 0.91% today weighed
by SPSETIA -2.45%, SUNWAY -3.77%, IJMLAND -1.15%. Market breadth was negative
with losers beating gainers by 474 : 281 . Futures closed at 1819 (7 pts
premium).
2) Heavyweights:
SKPETRO +3.73% RM4.45, PETGAS +1.50% RM24.09, GENTING +1.17% RM10.34, PPB
+2.96% RM15.30, MAYBANK +0.40% RM9.82, PETDAG -1.92% RM30.60, KLK -1.22%
RM24.30, FGV -1.79% RM4.38.
3) DBT: EDUSPEC 21mil @ RM0.15 (2.734% PUC @ 36.3%
premium), SUNWAY 10mil @ RM2.60, FOCAL 7.416mil @ RM2.75 (2.928% PUC).
4) Situational:-
KKB +0.37% RM2.69 - KKB Engineering Bhd's (KKB) unit,
Harum Bidang S/B (HBSB), has been awarded a contract for the Additional Supply
Order of Mild Steel Pipes and Pipe Specials by CMS Infra Trading S/B at an
estimated contract sum of RM227.0m. In a filing to Bursa Malaysia, the company
said the supply order is for the proposed construction and completion of
the Tanjung Manis Water Supply Project
(Phase 1) in Sarawak. The completion date of this additional order is expected
to be May 2015.
5) TENAGA : TNB informed today that the Government has
announced that effective 1 January 2014 the average electricity tariff in the
Peninsular will be increased by 4.99 sen/kWh or 14.89% from the current average
of 33.54 sen/kWh to 38.53 sen/kWh based on the 4 components - The adjustment of
domestic gas price from RM13.70/MMBtu to RM15.20/ MMBtu (1.52%), the price of
imported Liquefied Natural Gas ("LNG") fixed at RM41.68/ MMBtu
(10.17%), adjustment of base price for coal from USD85/metric tonne to
USD87.5/metric tonne (0.51%) and the review of TNB's base tariff which is being
raised by 2.69%.Government has also decided to revise the collection from
consumers for the RE fund from 1% to 1.6% effective 1 January 2014; +ve but
largely anticipated. The base tariff hike would be earnings positive for
Tenaga. The last 2 base tariff hikes took place in May 2011 and June 2006.
Recent developments suggest that structural reforms in the power sector are
panning out as expected. We reckon that this will lower the overall cost of
equity for Tenaga in the long run & continue to see Tenaga as the ultimate
winner from sector reforms.
6) MARKET : Continuation of 2-tier markets where index
stocks will grind higher while trading on lower liners remains listless.
