FBMKLCI 1824.03pts
-10.94pts (-0.60%) Volume
2.344b Value 2.690b
1) The KLCI lagged behind its regional peers as the US
market rose overnight after better retail sales report in December boosted
investors' confidence. Bourses were bullish after optimism from the West
translated into the region as HSI +0.49%, NIKKEI +2.50%, STI +0.54%, ASX +0.64%
all rose in tandem with the Dow Futures; SHCOMP -0.17% however, was the only
other major index that fell behind weaker money supply data for China in December.
In the local market, volume exceeded the 2bil mark as the index stocks faced
selling pressure that's linked to activities of foreign funds, CIMB -2.87%,
TENAGA -1.19%, PCHEM -1.47% were the biggest losers amongst the index. Market
breadth was negative with losers outpacing gainers by 556: 284. Futures closed
at 1823 (1 pt discount).
2) Heavyweights: CIMB -2.87% RM7.09, GENTING -1.94% RM
10.08, TENAGA -1.19% RM11.56, MAYBANK -0.90% RM9.81, PCHEM -1.47% RM6.69, PPB
-3.04% RM15.30, SIME -0.96% RM9.21, DIGI -1.03% RM4.80.
3) DBT: BIOOSMO 50mil @ RM0.16 (10.98% PUC @ 28.9%
discount), UTOPIA 30mil @ RM0.10 (3.336% PUC @ 12.5% premium), BJAUTO 5mil @
RM1.71
4) Situational:-
IOIPG +25.498% RM3.15 - IOI Properties Group Bhd made a
strong debut today when it opened at RM3.21 which was 70 sens above its
reference price of RM2.51 and closed at RM3.15 with 66mil traded in the market.
5) PESTECH : announced that its wholly-owned subsidiary,
PESTECH Sdn Bhd has on 13 January 2014 received a contract from Sarawak Energy
Berhad (SEB) for a total value of RM84.98m in relation to the design, engineering,
procurement, construction, testing and commissioning of SEB's Mambong and
Entinggan 275 kV substation extension project. Project is for the extension of
the existing Mambong 275/132/33kV Substation in Mambong and Entinggan 275/33kV
Substation in Kota Samarahan, Kuching, Sarawak. It also includes the
installation of 275kV capacitor bank equipment to improve power quality of
electrical network around Kuching. Work is expected to commence on 20 January
2014 and to be completed within 23 months; +ve, although will have no material
effect on the revenue and earnings for FY ending 31 December 2014 but is
expected to contribute positively to the future earnings. Catalysts for Pestech
remain i) its strong MYR415m OB ii) the bright outlook of the power transmission
industry and iii) its collaboration with ABB Malaysia SB that will facilitate
its expansion into switchgear manufacturing. Trading at 10x FY14, appears fully
valued.
6) Market: maintain existing consolidation phase with
critical support at KLCI 1820 level.