FBMKLCI
1888.69 +1.85pts (+0.10%)
Volume 1.791b Value 2.237b
1) The KLCI inch closer to record level after the US
major benchmark indices drifted higher behind better than expected report on
the US labour market. In the regional market, the SHCOMP +0.19% closed slightly
higher after leading indicators showed signs of recovery in the Chinese economy
despite a lower reading for the non PMI manufacturing numbers, HSI -0.08%closed flat while the NIKKEI slipped. In the local market, TECHNOLOGY
+1.10% stocks were the biggest gainers amongst the sector boosted by INARI
+2.60%, UNISEM +2.70%, MPI +2.44% and ECS +8.14%. Market breadth was positive
with gainers beating losers by 440 : 377. Futures closed at 1894.5 (6 pts
premium).
2) Heavyweights : PBBANK +0.70% RM19.90, TENAGA +0.64%
RM12.46, UMW +2.35% RM11.28, MISC +1.38% RM6.59, GENTING +0.50% RM9.98, IHH +0.9%
RM4.43, CIMB-0.68% RM7.30, PPB -1.44% RM14.98.
3) DBT : KRETAM 63mil @ RM0.58 (3.36% PUC), SUMATEC 42mil
@ RM0.35 (1.34% PUC@ 7.6% premium), YINSON 6.3mil @ RM2.7810 (5.5% discount).
4) Situational:-
UMWOG +0.72%
RM4.18 - UMW Offshore Drilling Sdn Bhd, a unit of UMW Oil and Gas Corp Bhd, has
received a letter of award from Frontier Oil Corp for the provision of a
jack-up rig and associated services for the KJF Field SC50 Block offshore
Palawan in the Philippines worth RM64.1m. The contract is for a duration of 120
days with an option for a further 180 days and should commence in mid-January
2015. The contract will utilise UMW Naga 7, its jack-up drilling rig built at
the CHMI shipyard in Shenzhen, China.
5) CIMB
CIMB Group today announced a leadership transition plan
which will take effect on 1st September 2014. Tan Sri Md Nor Yusof, Chairman of
CIMB Group, will retire from the Board of Directors and join the Group's
International Advisory Panel (IAP). Dato’ Sri Nazir Razak will be taking over
as Chairman of CIMB Group and relinquish his position as Group CEO. The Group
is also taking this opportunity to reconfigure its leadership structure. In
addition to being Chairman of CIMB Group, Dato’ Sri Nazir will also chair an
Executive Committee of the board (to be established), that will focus on key
strategic matters and enhance the board’s oversight functions. A new Group CEO
will be announced once regulatory approvals have been obtained. Nazir will also
continue to serve as President Commissioner of PT Bank CIMB Niaga and Deputy
Chairman of CIMB Bank and be nominated Chairman of CIMB Investment Bank with
effect from 1st September 2014.
CIMB may see a knee-jerk reaction to the announcement
that Dato’ Sri Nazir is stepping down from his executive role coupled with the
uncertainty over the identity of the new Group CEO. We view any sell down as an
opportunity to buy as CIMB is expected to have its succession plan in place and
the operations of the CIMB Group is unlikely to be affected with its
experienced second tier management.
6) Market: the strength of the US jobs report tonight and
its implications on growth and interest rates may impact fund flows into
emerging markets.
