FBMKLCI
1825.64pts +1.47pts (+0.08%)
Volume 2.466b Value 2.002b
1) The KLCI rose for a 6th straight session to close just
below the neckline resistance today; this is inline with the US market which
also recorded its biggest 4 day gain in more than a year after New Fed's
Chairman Janet Yellen fuelled bets the economy is strong enough to endure
further stimulus cuts. In the regional market, bourses were also higher led by
HSI +1.47% and SHCOMP+0.30% after JPMorgan forecasted that Chinese shares will
gain as much as 20% in weeks based on all time low valuations. In the local
market, PLANTATION index +1.00% rose the most today as heavyweights boosted the
sector, KLK +1.76%, GENP +3.92%, IOICORP
+0.70%, FGV +0.66%. Market breadth was slightly positive with gainers
edging losers by 421 : 398. Futures closed at 1823 (2.5pts discount).
2) Heavyweights:
KLK +1.76% RM24.22, TENAGA +0.50%
RM11.86, MISC +1.63% RM6.20, PPB +1.41%
RM15.82, GENM +0.93% RM4.34, PBBANK
-0.72% RM19.10, CIMB -0.55% RM7.19, PCHEM -0.74% RM6.70.
3) DBT: HUBLINE 55.707mil @ RM0.05 (1.71% PUC @ 16.6%
discount), MINETEC 13mil @ RM0.32 (3.90% PUC @ 4.9% premium), NETX 10mil @
RM0.11 (1.59% PUC @ 57% premium).
4) Situational:-
L&G + 2.12% RM0.48 - Land & General Bhd expects
to launch its latest property development project comprising four blocks of
serviced apartments by as early as December. The proposed development in Jalan
Ampang, Kuala Lumpur. The project is MYR788.7m with a gross development cost of
about MYR558.4m, giving the company an estimated profit of MYR230.3m. The
company noted that for projects nearing completion, about 80.0% have been sold
while the completed ones are close to 100.0% taken up.
SKPETRO +0.00% RM4.54 - SapuraKencana has finalised its
acquisition of Newfield's assets in Malaysia. The purchase price has been cut
from US$898m to US$896m, satisfied entirely by cash.
5) UMWOG
Hot on the heels on its last expansion announcement, the
company entered into a Sale and Purchase Agreement with Tianjin Haiheng
Shipbuilding & Offshore Engineering Service Co., Ltd for the purchase of
two jack-up drilling rigs for a total purchase consideration of USD 434 million
The 2 jack-up drilling rigs with hull numbers CMHI 128-1
and CMHI 128-2 be classed with the American Bureau of Shipping with Class
notation A1 Self-Elevating Drilling unit, CDS and flagged under the Panamanian
flag by the Seller prior to delivery.
The Purchase Price will be funded partially from the
proceeds of the recently completed Initial Public Offering and the balance by
borrowings. Delivery schedule is as follows i. Hull CMHI 128-1 in September
2014; and ii. Hull CMHI 128-2 in December 2014.
UMWOG currently has four drilling rigs in operations,
namely NAGA 1, NAGA 2, NAGA 3 and UMW NAGA 4 with one more premium jack-up rig
to be delivered in May 2014. With recent contract awards including the
extension of NAGA 2 in Vietnam by Petrovietnam Drilling and Well Services
Corporation and the award by Nido Petroleum Philippines of a new contract for
the new build UMW NAGA 5 that will commence in June 2014. +ve but expected by
the market.
6) Market - CI to consolidate around these levels ahead
of reporting season next few weeks with focus maintained in mid caps.
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