FBMKLCI
1879.12 -3.59pts (-0.19%)
Volume 1.712b Value 1.654b
1) The KLCI closed lower today after major US benchmark
indices eased slightly ahead of key economic data later this week. In the
regional market, bourses were mixed as most of the stocks in the SHCOMP +0.10%
rose as manufacturing reports showed an expansion; HSI -0.13%however, closed in
negative territory as analysts forecast limited upside for the Hong Kong stocks
due to toppish valuations. In the local market, TECHNOLOGY +0.70% index picked
up in the 2h to be the biggest gainer amongst the sectors whilst the TRADING
index -0.4% loss the most weighed down by ASTRO -2.87%, AXIATA -1.00%,
GENM-1.66%. Market breadth was negative as losers beat gainers by 414 "
368. Futures closed at 1883.5 (4 pts premium).
2) Heavyweights : AXIATA -1.00% RM6.90, IOICORP -1.71%
RM5.16, GENM -1.66% RM4.13, ASTRO -2.87% RM3.38, DIGI -0.69% RM5.69, PPB -1.58%
RM14.90, PBBANK +0.71% RM19.72, BAT +1.70% RM66.66
3) DBT : GBH 19mil @ RM1.50 (10% PUC @ 14.8% discount),
PNEPCB 8.181mil @ RM1.10 (12.444% PUC), SILKHLD 2mil @ RM1.02.
4) Situational:-
MRCB +1.75% RM1.74 - Kwasa Land Sdn Bhd, the master
developer for the 2,330-acre iconic Kwasa Damansara Township announced that
Malaysian Resources Corporation Berhad (MRCB) had won the bid for the coveted
inaugural development of 'Project MX-1', a 64-acre parcel of mixed development
with an estimated gross development value of over RM 7.0b. Trading BUY
5)FAVCO : announced that its wholly-owned subsidiary,
Favelle Favco Cranes (M) Sdn Bhd, Favelle Favco Cranes (USA) and Kroll Cranes
A/S had received 5 purchase orders or Letter of Intent in the month of June
2014 for a total sum of RM69.2m. Contract involves the supply of 3 offshore
cranes & 2 tower cranes. All the cranes are expected to be delivered from
early to the second quarter of 2015. Contracts are expected to contribute
positively to the earnings and net assets of FFB for the financial year ending
31 December 2014 and beyond; +ve ,adds to its strong all time high OB of around
MYR1.11bn in 1QFY14. We believe 65% of these orders will be delivered by FY14
and the rest by FY15 onwards. We estimate that 95% of its orderbook is made up
of contracts to supply offshore oil & gas cranes, with visibility up to
FY16. The group's earnings growth is underpinned by the buoyant demand for
offshore drilling rigs. However, we believe the current price may have
reflected its potential earnings growth and it currently lack further re-rating
catalysts - Hold.
6) Market : We expect more consolidation as the local
benchmark is still well supported at the current level. Momentum indicators
suggest that the index is likely to continue range-bound between 1,872 to 1,889
level. Should the 1,872 uptrend channel support be violated, this could trigger
further profit taking activities towards 1,853 (100 SMAl).