FBMKLCI
1834.97pts +8.36pts (+0.46%)
Volume 2.067b Value 1.738b
1) KLCI reversed its weaker opening to close firmer
inline with regional markets after slower growth in U.S. payrolls eased concern
the Federal Reserve will accelerate cuts to stimulus. In the regional market,
bourses were generally positive with gains seen in HSI+0.2%, Jakarta+3%, and
Thai+2%. China-0.2% were lower with persisting fears of liquidity tightening
ahead of Chinese New Year. In the Local market, Properties-0.46% underperformed
led by weakness seen in UEMS-2.1%, SUNWAY-2%, and MAHSING-2.2%. Market breadth
turned negative as losers edged gainers by 435 : 408. Futures closed at 1836.5
(1.5pts premium).
2) Heavyweights: MAYBANK+0.92% RM9.90, TENAGA+1.04%
RM11.70, PETGAS+1.65% RM23.38, MISC+3.64% RM5.70, GENTING+1.18% RM10.28,
PPB+2.73% RM15.78, PBBANK+0.31% RM19.22, UMW-1.5% RM11.70
3) DBT: PRESBHD 19mil @ RM2.80 (8.64% PUC @ 12%
discount), MTRONIC 15.75mil @ RM0.095 ( 2.348% PUC @ 11% premium), GENETEC
10mil @ RM0.05 (2.84% PUC @ 65% discount).
4) Situational:-
KPS -3.72% RM1.81/PUNCAK-2.09% RM3.28 - News reported Tan
Sri Abdul Khalid Ibrahim, Selangor MB, has directed the raw water license
granted to Puncak be terminated in favour of Kumpulan Darul Ehsan Berhad
(KDEB). Selangor will also start project HORAS in Sungai Selangor, which
involves the accumulation of stormwater. This will supply 600-700m litres of
cleanwater per day.
5) NAIM : announced that it had on 9th & 10th January
2014 disposed 15m shares representing 2.7% equity interest in Dayang on the
open market for cRM84m ( this represents a premium of RM4.43 / share or
approximately 378.6% above the unaudited net asset per share of Dayang of
RM1.17 ); +ve, disposal enables Naim to realize some of its investment in
Dayang at an attractive return. The proceeds would be utilized for working
capital requirement of Naim. The proforma effects of the disposal on the NA per
share and gearing of Naim Group are expected to improve from RM3.52 and 0.40
times to RM3.77 and 0.38 times respectively. We like Naim, as it's prospects
remain strong, underpinned by an extended upcycle driven by the MYR73bn Klang
Valley MRT project. Naim will also be buoyed by: i) the booming property
markets in Miri and Bintulu, backed by massive oil & gas and heavy
industrial developments ii) construction projects under SCORE, and iii) high
earnings growth of associate Dayang.
6) Market: following the successful retest of support at
the KLCI 1828 - 1822 band, the market is poised for a technical bounce. With
traders/punters seasonally more active towards the CNY season, second &
lower liners are expected to continue to hog the limelight.
