FBMKLCI
1871.09 +2.63pts (+0.14%)
Volume 2.682b Value 1.929b
1) The KLCI saw
flattish gains today following the better US market over the weekend as it
shrugged off the weaker job report. In the regional market, bourses were mixed
as the NIKKEI gained only +0.23% erasing earlier gains following a set of poor
GDP data, HSI saw profit taking after posting a strong 2% gain from last week,
this was despite the better export numbers in China for the month of August. In
the local scene, TECHNOLOGY index continue to show relative strength gaining
1.58% today boosted by MPI +5.73%, INARI +1.27%, UNISEM +1.77%. Market breadth
was positive with gainers beating losers by 474 : 353. Futures closed at 1865.5
(5.5points discount)
2) Heavyweights : TENAGA +1.63% RM12.46, AMBANK+1.74%
RM7.01, DIGI +0.87% RM5.79, HLFG +3.75% RM18.26, PPB +1.35% RM15.00, PBBANK
-0.62% RM19.20, GENM -1.61% RM4.26, SIME -0.63% RM9.43.
3) DBT : KTB 64mil @ RM0.625 (15.88% PUC @ 104% premium),
KARYON 3.9mil @ RM0.36 (1.025% PUC), BJLAND 3.85mil @ RM0.78 (9.4% discount).
4) Situational:-
E&O 0.00 RM3.00 - E&O has proposed a bonus issue,
free warrants and an issuance of up to RM500m in nominal value of private debt
securities. The proposed bonus issue is up to 114.09 million shares on a
1-for-10 basis while the warrants of 228.19 million is on a 1-for-5 basis.
E&O said the proposed PDS issue was a 20-year medium-term notes programme
and/or seven-year commercial papers programme. The company said the indicative
exercise price of the warrants was assumed at RM2.90, representing a premium of
around 4.6 sen or 1.61% to the five-day volume weighted average market price of
E&O shares of RM2.854.
5) UMW OG
UMW-OG, has received a Letter of Award from Petrovietnam
Drilling & Well Services Corporation for a contract for the provision of a
Jack-Up Drilling Rig and associated services for the end clients, PC Vietnam
Limited and PETRONAS Carigali Overseas Sdn Bhd..
The Contract, with an estimated contract value of USD
46.5 million for the firm contract period,
is for the provision of Drilling Rig Services for Drilling Campaigns for
Vietnam Operations, whereby UMW-OG Group will assign its newest rig, UMW NAGA 6
for this contract.
The Contract is for four (4) firm wells (approximately
250 days), with three (3) optional wells (estimated 55 days) and thereafter, an
Extension Option of 3 wells (estimated at 277 days). The commencement of the
contract is expected to take place in early October 2014 immediately upon
UMW-OG Group taking delivery of the new rig - UMW NAGA 6 this month.
+ve as UMW will take delivery of Naga 7 at the end of the
year and is already contracted out to the Philippines leaving only Naga 8
delivery in Sept 2015 without a contract.
6) Market - Recent mid/small cap clamour is starting to
lose some momentum, recommend switch to more defensive big caps for exposure
until levels are adjusted to more attractive prices. Top picks amongst core
blues remain TM and TNB.