FBMKLCI
1778.83pts -25.20pts (-1.40%)
Volume 1.261b Value 2.000b
1) The KLCI lost another -1.40% today inline with broader
market after the US market shed -2.08% overnight closing below its 200 day MA
support level as slower manufacturing numbers raised concerns of a sluggish
growth the economy. In the regional market, NIKKEI -4.18% lost the most grounds
amongst its major counterparts as the HSI -2.89%, STI -0.84%, ASX -1.72% all
closed in negative territory. In the local scene, most of the bluechip stocks
fell due to lack of buying interest amid the weaker regional equity markets,
the top losers amongst the CI were TENAGA -4.40%, IHH -4.60%, GENTING.-3.44%
Market breadth was negative with losers beating gainers by 494 : 214. Futures
closed at 1770 (8 pts discount).
2) Heavyweights:
TENAGA -4.40% RM11.28, GENTING -3.44% RM4.21, IHH -4.60% RM3.52, GENM
-3.44% RM4.21, PETGAS -2.39% RM22.82, SIME -1.33% RM8.87, CIMB -1.01% RM6.85,
MAXIS -1.72% RM6.85
3) DBT: SUNWAY 2mil @ RM2.64, MEDIAC 1mil @ RM0.80,
JETSON 874k @ RM0.80, HOHUP 610k @ RM1.06
4) Situational:-
HIBISCS +3.81% RM2.18 - both the shares and warrants
surged today just after its joint venture, REX holdings confirmed that it has
found hydrocarbons in Oman. In a statement, the group said that it has reached
the well target depth in the 2nd exploration well in Block 50 Oman to its final depth of more than 3,000
metres into the Cambrian formation. The well will undergo data acquisition
before setting the completion for testing.
5) PENERGY
PETRONAS announced what the market has been speculationg
on since mud Jan that it has reached the first oil production from the Kapal,
Banang & Meranti (KBM) Cluster fields, offshore Peninsular Malaysia which
commenced on 16 December 2013.
The KBM Cluster is an eight-year development project with
Kapal being in its first development and production phase. The Kapal field
facilities consist of one mobile offshore production unit (MOPU), one storage
tanker with approximately 600,000 barrels capacity, one drilling rig with an
attached well bay module and two flexible flow lines.
According to PETRONAS, through this mobile offshore
production concept, there is plan to continue determining the potential
production from the three KBM fields. The initial production rates from the
cluster were over 10,000 barrels of oil per day (bopd), with peak production
reaching 13,000 bopd.
The JV will begin receiving capex reimbursement from the
first commencement of oil but profit recognition will likely only be seen
towards end 2015. +ve as this could be the year that PENERGY delivers on the
execution from their Pan Malaysia project and new sub sea venture. BOW.
6) Market - Overall conditions expected to remain
volatile and choppy but in the short term we could see a technical bounce back
to the 1800pts levels. Big caps at trading buy levels include CIMB, SIME,
Genting, Boustead.
