Friday, September 26, 2014

Market Roundup | 25 September 2014


 

 

FBMKLCI   1843.11      +3.03pts   (+0.16%)     Volume  2.399b   Value 1.849b

 

 

1) The KLCI erased earlier losses to close 3 pts above parity after the stronger US housing data boosted investor's sentiments in the US shrugging off the weaker data in Europe. In the regional market, bourses were mixed as the SHCOMP +0.07% closed flat and the HSI -0.64% closed in the red following a rating cut by BNP Paribas, NIKKEI on the other hand bucked the trend gaining +1.62% on the Weakening Yen. In the local market, PLANTATION +0.65% index gained the most grounds today after KLK +2.27%, IOICORP +0.83%, FGV +0.85%, recorded gains following the rebound in CPO prices. Market breadth was slightly negative as losers beat gainers by 437 : 419. Futures closed at 1837 (6pts discount).

 

 

2) Heavyweights : CIMB +1.71% RM7.10, KLK +2.27% RM21.60, GENM +1.44% RM4.20, IOICORP +0.83% RM4.84, MAXIS +0.79% RM6.38, TM +2.50% RM6.54, MAYBANK (ex 24 sens) +0.40% RM9.88, UMW -2.28% RM12.00.

 

 

3) DBT : AIRASIA 109.396mil @ RM2.35 (3.93% PUC @ 4.1% discount), BJLAND 67mil @ RM0.7502 (1.34% PUC @ 12.3% discount), SUMATEC 20mil @ RM0.45 (4.65% premium).

 

 

4) Situational:-

 

PMETAL  -7.21% RM6.30 - Share price retraced 7.2% today after LME aluminium prices fell 8% in September below USD2000/MT.

 

 

THHEAVY (RM0.82) - TH Heavy Engineering Bhd (THHE) which has proposed to undertake a private placement of up to 10.0% of its issued and paid-up share capital of 125.8m new ordinary shares, has Pelaburan Mara Bhd (PMB) on board for its first tranche of shares placement. THHE said PMB had agreed to subscribe to 52.8m placement shares or approximately 5.0% of THHE's share capital at 80 sen per placement share. THHE said the issue price represents a 2.9% discount to the five-day volume weighted average market price of THHE shares up to and including Sept 23.

 

 

ABRIC -1.36% RM0.725 - Essentra plc, which makes plastics products, is buying 100% of Abric Bhd's main operating subsidiaries for RM146m. Essentra said on Wednesday the purchase of the business was on a cash-free and debt-free basis. Its CEO Colin Day said with a strong market position and an experienced management team, Abric is a compelling strategic fit for Essentra.

 

 

5) TGOFF : announced that its wholly owned subsidiary, Tanjung Offshore Services Sdn Bhd has been awarded by PETRONAS Carigali Sdn Bhd (PCSB) a  provision of EPIC Contract, on 4 September 2014. The Contract comprises the provision of EPIC of facilities for the ORIGInS Project that covers both Peninsular Malaysia and East Malaysia. The ORIGInS Project (Operational Reliability & Integrity Gauging of Instrument based Safeguards) is an initiative from PCSB's facilities to improve all automated safeguard items under the process shutdown system and fire & gas detection systems across PCSB's upstream facilities, whether pneumatic, hydraulic of electronic-based by identifying potential deficiencies in these automated safeguards. The Contract is valued at approximately RM200 m & duration of the Contract is for 3 years effective from 5 September 2014, with the option to extend for an additional 1 year; +ve, a welcome long awaited contract win. Contract is expected to contribute positively towards the earnings for the financial years ending 31 December 2014 to 31 December 2018.

 

 

6) Market: More sideways trading anticipated as technical Indicators were mostly flat, reflecting traders' indecision over mixed economic data. Geopolitical concerns could lead to more short-term bearish sentiment. However the index should remain well-supported at the 1830 points level.