FBMKLCI
1840.19 -5.86pts (-0.32%)
Volume 2.357b Value 2.235b
1) The KLCI dipped to a low of -13 pts following the
weaker US market overnight but recovered to close just -5 pts after China's
HSBC manufacturing index data for September unexpectedly beat consensus. In the
regional market, bourses were mixed as the SHCOMP +0.87% and ASX +0.98% both
recorded gains while the HSI -0.49% recovered but still closed in the red
following the better data reading. In the local market, INDUSTRIAL -0.69 product
sector lost the most grounds today weighed down by PETGAS -1.04%, LAFMSIA
-2.28%, PCHEM -0.32%. Market breadth was negative with losers beating gainers
by 527 : 284. Futures closed at 1832 (8pts discount).
2) Heavyweights : PBBANK-0.62% RM19.00, CIMB -0.85%
RM7.00, BAT -2.29% RM69.98, IOICORP -1.22% RM4.84, PETDAG -0.39% RM19.96,
TENAGA +0.65% RM12.28, MAXIS +1.11% RM6.33, PPB +1.56% RM14.30.
3) DBT : REACH 15.333mil @ RM0.525 (1.2% PUC @ 19.3%
discount), PWORTH 14.7mil @ RM0.20 (3.72% PUC @ 23.1% discount), SCICOM 10mil @
RM1.80 (3.37% PUC @ 5.3% discount).
4) Situational:-
BAT -2.29% RM68.98 - British American Tobacco Malaysia
Bhd and JTInternational Bhd yesterday reverted to the old prices for all its
cigarette brands. The two cigarette manufacturers' about-turn came barely a
month after the price of a pack of 20s was raised by RM1, citing the
challenging operating environment due to mounting inflationary cost pressure.
5) TNB : Tenaga Nasional Berhad announced the execution
of a Memorandum of Understanding (MOU) dated 22 September 2014 held in Dhaka
between Consortium of TNB & Powertek Berhad ("PB") with
Bangladesh Power Development Berhad ("BPDB") for the proposed
development of a 1,320MW Coal-Fired Power Plant at Maheshkali, Cox's Bazar,
Bangladesh. The execution of this MOU is to outline the general understanding
and framework for the exclusive cooperation between TNB-PB and BPDB to develop
an Independent Power Project Project and its main scope of cooperation is for
the parties to form a Joint Working Team to conduct project's feasibility study
and incorporate a joint venture company to develop the project on a
Build-Operate-Own basis and to sign a long-term power purchase agreement with
BPDB for the sale and purchase of power from the Project. The Commercial
Operation Date of the Project is expected to be in 2019; +ve on the signing,
but earnings impact likely to be muted in the near term, while impact to its
longterm earnings, while positive, is not material given Tenaga's large earnings
base. We still like TNB, catalysts for re-rating include: a) tariff hikes that
will lift revenues, b) fall in fuel costs, c) a stronger ringgit vs the US
dollar, d) operational improvements, e) strong economic growth will drive
demand for electricity, and f) lower IPP cost as a result of competitive
bidding to supply electricity in Peninsula.
6) Market : Negative regional news flow may dampen
market's enthusiasm in the near term. However, downside could be limited,
supported by the conclusions of the recent monetary policy meetings in both US
and Malaysia. The decision of Scotland rejecting independence also helped to
remove another major disruption in Europe. Support seen at 1830 pts.