FBMKLCI
1813.01pts -11.02pts (-0.60%)
Volume 1.711b Value 2.184b
1) The KLCI continue to see selling pressure as index
slip below its support of 1815pts even as the US market rallied into record
territory following a set of strong earnings by heavyweights and a Fed survey
showed a growth in economic data. In the regional market, bourses were mixed as
HSI +0.37% rose to recent highs following optimism from the US, SHCOMP +0.02%
closed flat while NIKKEI -0.39%, STI -0.11% remains in negative territory. In
the local market, heavy selling was seen throughout the market as PROPERTY
index -0.95% lost the most grounds weighed down by UEMS -3.12%, SPSETIA -1.01%,
MAHSING -1.81%. Market breadth was negative as losers led gainers by 571 : 245.
Futures closed at 1809 (4pts discount)
2) Heavyweights: AXIATA -1.33% RM6.64, TENAGA -0.86%
RM11.46, SIME -0.97% RM9.12, GENM -1.82% RM4.30, DIGI -1.25% RM4.74, IOICORP
-1.42% RM4.14, YTL-1.88% RM1.56, GENTING +1.19% RM10.20
3) DBT: XDL 36.8mil @ RM0.435 (3.201% PUC @ 30.4%
discount), GBGAQRS 15mil @ RM1.12 (4.219% PUC), UTOPIA 6.65mil @ RM0.085
4) Situational:-
AZRB -9.34% RM0.825 - Ahmad Zaki Resources has proposed a
corporate exercise involving reducing its paid-up share capital and a rights
issue with warrants to reduce the accumulated losses at the company level. It
proposed to reduce the paid-up share capital by cancelling 25 sen from each 50
sen share and a renounceable rights issue of up to 207.7m new shares with 103.85m
free warrants. AZRB said the rights shares would be issued at 50 sen each on
the basis of six rights shares with three warrants for every eight existing
shares held after the proposed par value reduction.
EKOVEST +0.67% RM2.89 - secured a contract worth RM130m
from Kuala Lumpur City Hall for improvement and beautification works under the
"River of Life" project. Ekovest said its 60%-owned subsidiary,
Ekovest-MRCB Construction Sdn Bhd, accepted the project at Precinct 7, which is
expected to be completed in 2016 and contribute positively to the group's
future earnings.
UEMS -3.12% RM2.17 - UEM Sunrise fell to 11 month low
after news reported it will be replaced in the KLCI by IOIPROP effective 21st
Jan. UEMS will replace MBMR in the mid 70 index.
5) PERDANA : announced that Perdana Nautika Sdn Bhd, a
wholly-owned subsidiary, has accepted the letter of award dated 10 January 2014
from Talisman Malaysia Limited for the charter of one unit of Anchor Handling
Tug Supply vessel. The charter will run effective from 10 December 2013 for a
period of one year with extension option of an additional year. The LOA is
valued at approximately RM50.0 million and is expected to contribute positively
to the revenue and earnings of PPB Group for the financial year ending 31
December 2014 and the financial periods thereafter for the duration of the
Contract ; +ve. Co's medium-to-long-term prospects are stable on the back of
it's long-term contracts. For its existing vessels, at least 10 are chartered
till 2018-2019 and another three are till 2014-2015. Longer-term prospects will
hinge on PERDANA's future fleet expansion which we believe management will
broach after it mobilises all vessels needed for the DAYANG project by next
year - Hold.
6) Market: With the KLCI 1820 level broken through in
relatively higher volume, market is likely to trade lower towards the
psychological support at KLCI 1800.