FBMKLCI
1867.69 +1.58pts (+0.08%)
Volume 2.802b Value 2.156b
1) The KLCI
slipped in morning trading before closing just mildly above after the long
national day weekend despite the stronger US market overnight which recorded
its biggest monthly gain since February. In the regional scene, bourses were
generally stronger led by the NIKKEI +1.24% which gained after the yen weakened
to a 9 month low and sentiments were driven by better wages data, SHCOMP +1.37%
gained today led by defence and technology stocks amid speculation that the
government will increase military spending, HSI -0.01% however closed flat amid
profit taking. In the local market, the volatile TECHNOLOGY -0.51% index loss
the most grounds today weighed by selected names such as UNISEM -6.21%, GPACKET
-8.57%, MPI -1.22%, JCY -0.72%. Market breadth was negative with losers beating
gainers by 526 : 339. Futures closed at 1861 (6.5pts discount).
2) Heavyweights : ASTRO +7.92% RM3.54, GENTING +1.25%
RM9.70, MAYBANK +0.39% RM10.14, IOICORP +0.83% RM4.82, GENM -2.88% RM4.38,
PBBANK -0.51% RM19.18, PPB -1.75% RM14.52, MAXIS -0.76% RM6.50.
3) DBT : BJLAND 272.5mil @ RM0.75 (5.45% PUC @ RM11.8%
discount), DESTINI 14.5mil @ RM0.65 (1.81% PUC), EURO 13.196mil @ RM0.4248
(19.291% PUC @ 22.1% discount).
4) Situational:-
SKPETRO +0.71% RM4.25 - SapuraKencana announced that it
has made another gas discovery during its 5th and final well drilling campaign
for 2014 within the SK408 PSC area. It also announced that its Offshore
Construction and Subsea Services Division had won c.RM358.5m worth of works for
both TLO Offshore and SapuraAcergy (Australia) Pty Ltd (JV company).
5) Sentoria : announced that it's subsidiary, Sentoria
Langkawi Sdn. Bhd. ("SLSB") has entered into the following 2
agreements - Lease Agreement with Lembaga Pembangunan Langkawi (LPL) to lease approximately
70 acres of Malay Reservationn Land located at Bandar Padang Mat Sirat,
Langkawi, Kedah for a consideration of RM30.49m, and Lease Agremeent with LPL
to lease approximately 50 acres also in Langkawi for a consideration of
RM10.89m ; +ve, land is situated at a very strategic location will enable
Sentoria to develop a premium/higher resort city and medical village which
cater for overseas tourists and investors, synergistic to the group's business
and Langkawi's development and tourism plan. The Proposals will enable Sentoria
to expand its business into the northern Peninsular Malaysia/Langkawi
(geographical diversification) and enhance future recurring leisure and
hospitality income to create sustainable growth. It intends to fund the
proposals through internally generated funds and/or bank borrowings, mix of
which to be determined later. We continue to like the group as it stands a good
chance in winning more public housing projects from the state government of
Pahang given it is one of the largest developer-cum-contractor in Kuantan and
its prior track record of constructing PR1MA project. In addition to that,
earnings in FY15 and FY16 are also set to be substantially stronger as we
expect property developments at Morib Bay and Borneo Samariang to commence.
Trading at c9x for FY09/15, Accumulate on weakness.
6) Market: Further consolidation expected as there is no
imminent re-rating catalyst in the short term. The poor earnings reporting
season & profit taking activities on small caps and penny stock would cap
any upside. Likely to trade between 1860-1880 points this week.
