FBMKLCI
1818.86 -0.26pts (-0.01%)
Volume 1.695b Value 2.144b
1) The KLCI saw range-bound trading today after the US
market recovered to closed in positive territory overnight, the local index
however took a turn in the latter session after Chinese data missed estimates.
In the regional market, bourses were mixed as HSI -0.67% closed at its day low
while SHCOMP +1.07% stocks recorded its biggest gain in 3 weeks boosted by
banks amid speculations that they may take part in a preferred-stock trial. In
the local scene, trades were choppy with the PLANTATION INDEX -0.58% losing the
most grounds today after a strong run in the past month; biggest losers amongst
the index were GENP-3.82%, KULIM -2.79%, SOP-3.03%. Market breadth was negative
with losers beating gainer by 416 : 326. Futures closed at 1815 points (4points
discount)
2) Heavyweights: SKPETRO -2.29% RM4.25, GENTING-0.80%
RM9.84, PCHEM -0.75% RM6.61, CIMB +0.99% RM7.09, PBBANK +0.31% RM19.04, YTL
+1.31% RM1.54, PETDAG +0.93% RM30.30, KLK +0.58% RM23.94.
3) DBT: SYF 56.485mil @ RM0.60 (20.670% PUC @ 7.0%
discount), MTRONIC 3mil @ RM0.10, SEG 2mil @ RM1.51.
4) Situational:-
HANDAL +8.98% RM0.485 - Handal Resources Bhd has been
awarded a contract worth RM16.0m by UMW Petrodril to provide portable platform
crane and related accessories. Its unit Handal Offshore Services Sdn Bhd had
received a letter of award from UMW Petrodril for the provision of oil and gas
crane and related accessories for a period of two years starting March 2014.
The new contract brought the group’s total order book to more than MYR260.0m
and comprises primarily of recurring income.
SYF +2.38% RM0.645 - SYF Resources Bhd’s chairman/chief
executive officer, Ng Ah Chai, has launched a mandatory takeover offer of the
company at 65 sen per share after increasing his stake in the company to 50.5%
today. Ng now hols 137mil shares in the company after acquiring Tan Sri Clement
Hii Chii Kok’s 20% stake (54.5mil) in the company.
5) Water sector: It was reported that the Energy, Green,
Technology and Water Minister said that the water concessionaires having failed
to complete the negotiations with the Selangor state government by March 10,
2014, “was given a grace period of another three months for the final
restructuring of the exercise”. The federal government will take over
production and management of Klang Valley water assets if talks between the
Selangor state government and concessionaires reach a deadlock. He said “fair
play and justice still applies” it came
to compensating the water concessionaires. The federal government “will still
allow the Selangor government to continue to negotiate with the concessionaires
on a willing-buyer and willing-seller basis.
With this statement from the Minister, the fears of a
forced takeover of water assets at unfair valuations may be overblown. However,
in view of the uncertainties from conflicting interest of different stakeholders,
investors are advised to stay side-line until the situation becomes clearer.
6)Market: the general market is expected to continue to
hold support around the current levels with some oversold sectors seeing a
technical bounce.