FBMKLCI
1871.58 -5.16pts (-0.27%)
Volume 1.359b Value 1.405b
1) The KLCI saw lacklustre trading today as the Iraq
tension continue to worsen over the weekend. In the regional market, trades were mainly negative with NIKKEI
-1.09% and HSI -0.08% closing in negative territory while SHCOMP +0.74%
recorded gains behind stronger energy names after President Xi Jinping said the
nation needs to find new ways to produce and consume fuels to ensure its
long-term security. In the local market, AIRLINE related stocks were actively
traded with oil prices staying at elevated levels with losses seen in AIRASIA
-2.91% while MAS +5.00%, AIRPORT +1.16%, BRAHIMS +7.56% RM1.99 were among the
gainers. Market breadth was negative with losers beating gainers by 402 : 383.
Futures closed at 1874 (2.5points premium).
2) Heavyweights : GENTING -1.37% RM10.06, SKPETRO -1.63%
RM4.21, IOICORP -1.15% RM5.15, YTL -1.80% RM1.63, PPB -1.30% RM15.10, PBBANK
-0.19% RM20.78, CIMB -0.27% RM7.17, BAT
+1.47% RM65.96
3) DBT : HUBLINE 15mil @ RM0.05, BJAUTO 10.8mil @ MR2.27
(1.33% PUC), MAGNUM 4.5mil @ RM3.06
4) Situational:-
SCABLE +6.94% RM1.54 - Sarawak Cable Bhd has been offered
to buy the 100% stakes in Universal Cable (M) Bhd and Leader Cable Industry Bhd
from HNG Capital Sdn Bhd for an indicative purchase consideration of RM210mil.
Sarawak Cable said on Monday it had accepted the offer from HNG Capital to
acquire the stakes which would be settled via cash, assumption of liabilities
and the issuance of new Sarawak Cable shares. Universal Cable’s core activities
are manufacture and sale of telecommunication and power cables.
BPURI +0.74% RM0.675 - Bina Puri Holdings Bhd is close to
clinching a deal worth close to RM300.0m from Brunei’s Ministry of Development
to build some 1,000 units of affordable houses in Kampung Lugu, Brunei. The
contract was worth RM693.0m. The construction outfit’s order book will increase
to nearly RM2.0b should it win the latest round of job building the affordable
houses but generally within thin profit margins, resulting in a wide disparity
between its top and bottom lines.
5) Esthetics
Announced that its wholly-owned subsidiary Esthetics
Concept Sdn Bhd has signed a Distributor Agreement with Micro Current
Technology, Inc. / Bio-Therapeutic, Inc. The Agreement grants ECSB the
exclusive rights to distribute Bio-Therapeutic professional skin care equipment
in Malaysia, Singapore, Brunei and Thailand, with a first right of refusal for
Hong Kong, Indonesia and the Philippines. The term of the Agreement is for a
period of ten years commencing from 1 July 2014 to 30 June 2024 with the option
to renew for a further period of ten years.
The Agreement will enable EIG to further leverage its
professional distribution network and product portfolio to the distribution of
professional skin care equipment to all appropriate channels of distribution,
including professional salons. Established in 1974, BT is one of the leading
brands in professional skin care equipment with worldwide distribution in over
30 countries. Based in Seattle, Washington USA, BTI is the US FDA registered
manufacturer of the BT lines of professional skin care technology and
equipment.
Positive as this adds to Esthetics successful established
brand of Dermalogica and provides potential growth to its already steady
business model. Trading at reasonable forward PE multiple of 13x and strong
balance sheet we rate it a hold.
6) Market – Jitters over the geopolitical tensions in
Iraq and rising oil prices will see investors remain largely sideline with the
KLCI drifting in a range between the 1850pts levels and 1880pts.