FBMKLCI
1868.46 -0.75pts (-0.04%)
Volume 2.710b Value 2.255b
1) The KLCI saw
choppy trading today before closing just slightly below following the mixed US
market overnight despite the bullish the ECB’s stance to introduce more
stimulus. In the regional market, bourses were inline with the hesitant
sentiments as the NIKKEI -0.05% and HSI -0.25% closed in the red while the
SHCOMP +0.85% continued its winning streak. In the local scene, TECHNOLOGY
index rebounded gaining +1.87% boosted by MPI+4.73%, UNISEM +3.68%, INARI
+1.95%. Market breadth was generally positive today as gainers beat losers by
506 : 304. Futures closed at 1859.5pts (9pts discount).
2) Heavyweights : PBBANK +0.73% RM19.32, HLBANK +2.93%
RM14.74, IHH +1.62% RM5.00, AMBANK +1.77% RM6.89, KLK -4.70% RM22.30, CIMB
-0.68% RM7.23, TENAGA -0.64% RM12.26, GENTING -0.61% RM9.69
3) DBT : SCH 60.1mil @ RM0.28 (14.57% PUC @ 6.7%
discount), PASUKGB 10mil @ RM0.16 (3.39% PUC @ 45.8% discount), BJLAND 9mil @
RM0.75 (12.8% discount).
4) Situational:-
DIGISTA +1.63% RM0.31 - Digistar Corp Bhd is looking to
jump-start and expand its central monitoring system (CMS) business through a
series of acquisitions of other sizable players in the local market. The
information and communications technology (ICT) and property player made its
first acquisition this week - a 70.0% stake in Protecs A & A CMS Sdn Bhd,
which gave Digistar Corp immediate access to a customer base of 5,000. The
Group said the company was looking to acquire another two or three more CMS
providers to increase its customer base, in line with its target to hit 500,000
subscriptions in five years.
5) DIALOG
Further to the announcement on acceptance of the Letter
of Intent on 30 May 2014, Dialog Group Berhad (“DIALOG”) is pleased to announce
the completion of the farm-out agreement between its wholly owned subsidiary,
Dialog Resources Sdn Bhd (“Dialog Resources”) and ROC Oil (Sarawak) Sdn Bhd
(“ROC”) for 20% participating interest in the PSC for the three fields D35, D21
and J4, located offshore Sarawak, Malaysia (“PSC”), which will reduce ROC's
participating interest in the PSC to 30%.
Following the farm-out, the participating interests of
the PSC Contractors will be:
PETRONAS Carigali Sdn Bhd 40%
E&P Malaysia Venture Sdn Bhd 10%
Roc Oil (Sarawak) Sdn Bhd 30%
Dialog Resources Sdn Bhd 20%
PETRONAS Carigali Sdn Bhd (“PCSB”) is the Operator of the
PSC and retains responsibility for operations and maintenance of the
facilities. PCSB has, in addition to ROC’s participation in the PSC, appointed
ROC as the PSC Development Manager.
The field re-development and enhancement of oil recovery
consist of:
1.Phase 1 – commenced in early 2014 is designed to
increase oil production rate and enhance the Fields production potential
through a series of intervention activities and facility debottlenecking projects.
Phase 1 has a minimum work commitment of US$70 million.
2.Phase 2 - is expected to significantly expand the
production and overall recovery potential from the Fields. Phase 2 is subject
to a Field Development Plan (“FDP”) sanction, following completion of a series
of studies designed to prove the reservoirs’ responses to re-pressurisation and
tertiary recovery. Completion of the study work and the subsequent FDP approval
process are planned during 2015. Phase 2 has a minimum work commitment of US$50
million and full Phase 2 cost estimates will be refined during the study
period.
The PSC terms are designed for field re-development and
enhancement of oil recovery to commercially encourage progressive incremental
oil development over the full life of the PSC, which expires on 31 December
2034.
DIALOG’s participation in the PSC allows them to grow its
upstream assets and to continue to develop its upstream capabilities in the oil
and gas activities
Market: Expect the index to be range bound with upcoming
BNM policy meeting to shed light on our economy. Key support at 1850pts level.