FBMKLCI
1828.68pts -1.26pts (-0.11%)
Volume 3.063b Value 2.076b
1) The KLCI was jittery today after the US market closed
in negative territory as investors await anxiously for the new Fed Chairman,
Yellen, to address the monetary policy overhang this Thursday. In the regional
market, bourses were weaker led by SHCOMP -1.75% which fell amid speculation
that the country's central bank will reduce lending to the property; HSI -0.80%
was not far behind the China's benchmark index as Developers in the country
weighed the index down. In the local market, selected O&G stocks fell in
light of recent announcement that the 60bn RAPID project by Petronas might be
delayed further; namely KNM -12.5%, DIALOG -2.09%, SKPETRO -0.45%. Market
breadth was negative with losers inching past gainers by 446 : 432. Futures
closed at 1832 (3.5pts premium).
2) Heavyweights: GENTING -2.51% RM10.10, PETGAS -1.27%
RM23.20, MISC -1.87% RM6.28, AXIATA -0.305% RM6.53, IOICORP +1.31% RM4.61, SIME
+0.77% RM9.09, KLK +1.66% RM24.40, TENAGA +0.33% RM12.04
3) DBT: UTOPIA 13.037mil @ RM0.09 (1.45% PUC), WILLOW
11mil @ RM0.595 (4.435% PUC @ 19.1% discount), MASTEEL 6mil @ RM1.07 (2.70%
PUC)
4) Situational:-
CRESBLD +3.33% RM1.55 - has been awarded a contract by
Naza Engineering & Construction Sdn Bhd for the Construction of
Super-structure Works of a tower of 36 storey serviced apartments on Lot 51889,
Off Jalan Damansara, Mukim Kuala Lumpur, Wilayah Persekutuan for a contract sum
of RM63.88 million. The contract period is twenty four months and the Contract
is expected to be completed by 2 March 2016.
5) TAAN
FYE Dec 2014 Tover
-2% RM774.1m Net +60% RM92.1m EPS 24.8sen
22% below cons(f)
RM117m
Sales volume of CPO increased by 17% with logs stagnant
as export log average selling price increased by 16% but average selling price
of FFB and CPO dropped by 19% and 18% respectively.
First tranche compensation payment of A$20.3 million net
of GST received by the Australian subsidiary, Ta Ann Tasmania Pty Ltd from the
Australian Government for wood supply entitlement returned to them but offset
by inventory write down/ off of RM21 million in year 2013.
Going forward, the timber sector performance will be
influenced to a great extent, by the economy of the main log buyer country,
India and plywood market in Japan. The general log supply shortage in the
market is likely to sustain the log demand and price.
Plywood demand is expected to pick up as preparation and
infrastructure/ building construction for Tokyo Olympics 2020 are gearing up.
Recent weakness brought upon by Wilmar's policy is seen
as a buying opportunity with the recovery in logs and CPO prices this year.
Accumulate.
6) Market - Cautious trading pattern to continue with
market breath still mixed as traders rotate into new situationals with the KLCI
remaining in a tight band.
