FBMKLCI
1866.11 -4.74pts (-0.25%)
Volume 2.042b Value 1.918b
1) The KLCI closed at its day low weighed down by
heavyweights SIME, MAXIS, PBBANK despite the strong US market overnight. In the
regional market, bourses were mixed as the NIKKEI +0.76% continue to gain on
the back of weakening Yen, SHCOMP -0.29% and HSI -0.17% both fell following a
set of inflation data which showed signs of weakness in domestic demands after
imports declined and money supply expansion slowed. In the local scene,
PLANTATION index -0.51%, weighed by FGV -2.11%,TSH -5.04%, KLK-0.62% after an
increase in CPO inventory for September. Market breadth was negative as losers
beat gainers by 430 : 412. Futures closed at 1858.5 (7.5pts discount)
2) Heavyweights : SIME -1.38% RM9.25, CIMB -0.69% RM7.20,
MAXIS -1.54% RM6.39, SKPETRO -1.16% RM4.23, DIGI -0.855% RM5.80, PBBANK -0.31%
RM19.12, FGV -2.11% RM3.70, BAT +1.34% RM72.50.
3) DBT : INSTACO 15.1mil @ RM0.22 (2.15% PUC), CUSCAPI
8.039mil @ RM0.40 (1.84% PUC @ 21.2% premium), INGENCO 6mil @ RM0.10 (25%
premium).
4) Situational:-
WPRTS +4.13%
RM3.02 - Westports Holdings Bhd expects its overall handling capacity to
increase to 11.0m twenty-foot equivalent units (TEUs) with the launch of its
new Container Terminal 7 (CT7). The company said the port is expected to handle
eight million TEUs this year, up from 7.5m TEUs last year. With the launch of
CT7, they will also be ready for the latest 19,000-TEU vessels when they are
launched by China Shipping later this year.
5) YTL Corp
The Economic Times reported that YTL is in talks with India’s
NSL Group to buy up to 49% stake in the latter’s thermal power business, i.e.
49% stake in NSL Orissa Power & Infratech, which is setting a coal-fired
power project in Orissa’s Angul district. The project is being funded through
debt equity of 70:30. Apart from acquiring land for the thermal power project,
the company has also obtained all the approvals and has awarded the
engineering, procurement and construction contract to Tata Projects. YTL is
also in talks with NSL Group to buy a majority stake in the operations &
maintenance arm of the Orissa project.
This acquisition, if true, is in line with the YTL
Group’s activities and is likely to be parked in YTL Power as with the current
business structure. Details on purchase consideration is required for further
assessment.
6)Market: the recent increase in global bond yields and
the fear of a potential change in Federal Reserve policy to bring forward the
date for hiking interest rates is impacting on emerging market equities.
Markets are likely to tread water until Sept 17 FOMC meeting.
