FBMKLCI
1803.14 +14.83pts (+0.83%)
Volume 2.049b Value 2.211b
1) The KLCI gained for a 2nd consecutive day following
the higher U.S market just before the weekend as global sentiments continue to
improve after the U.S and Europe central bank's continue to lean towards the QE
stimulus approach. In the regional market, bourses were higher at the close
after the China's PBOC said that it plans to inject approximately 200bil Yuan
into national banks to prepare them to year-end liquidity needs, SHCOMP +0.66%
, HSI +0.20%, NIKKEI +4.01%, ASX +0.91% all rose inline with the bullish
statement. In the local market, TECHNOLOGY +3.20% index continue to outperform
the broad market as UNISEM +14.39%, INARI +5.88%, GTRONICS +5.51% gained.
Market breadth was positive as gainers outpaced losers by 569 : 305. Futures
closed at 1794.5 (7.5pts discount).
2) Heavyweights : CIMB +2.18% RM6.54, SKPETRO +3.74%
RM3.60, PBBANK +0.75% RM18.60, MAYBANK +0.93% RM9.69, GENTING +1.55% RM9.12,
MAXIS +1.53% RM6.62, IHH +1.87% RM4.88, AMBANK +1.96% RM6.76.
3) DBT : MTRONICS 10mil @ RM0.10 (1.43% PUC @ 10%
premium), TDEX 5mil @ RM0.20 (1.46% PUC @ 4.8% discount), YINSON 3mil @ RM2.56
(0.29% PUC @ 3.4% discount), TITIJYA 380k @ RM2.13.
4) Situational:-
KNM 0.00% RM0.745 - KNM Group Bhd has proposed a
one-for-five renounceable rights issue of up to 430.4m new shares, together
with free warrants on the basis of one warrant for every two rights shares
subscribed, to raise between RM233-RM310m. The company said assuming an
indicative issue price of 72 sen per rights share, the proposed rights issue is
expected to raise gross proceeds of up to about RM233m-RM310m under the minimum
scenario and maximum scenario respectively.
5) YINSON
Announce that Addax Petroleum Development (Nigeria)
Limited has extended its contract for the charter of its 100% owned FPSO Knock Adoon with Adoon
Pte Ltd by one year with effect from 17 October 2014. The Extension Contract is
valued at approximately USD39.0 million.
The original contract for the FPSO was awarded on 17
October 2006, for a firm eight year period with option to renew up to eight
years and the said original contract has expired on 16 October 2014. Both
parties have now agreed to extend the term of the said original contract by one
year to 16 October 2015. FPSO Knock Adoon was built in 1985 and has been
operating on the Antan field in Nigeria throughout the contract period.
+ve once again
demonstrating Yinson's ability to continue to secure charters for its assets
despite challenging conditions and we understand the charter rate is higher
than its original firm period. Recent weakness in the market has brought its
valuation down to more reasonable levels (19x PE fwd yr) given that it is the
6th largest FPSO/FSO fleet owner with likely new contract awards in the near
future. Accumulate with strong support seen around the RM2.45 levels.
6) Market - Choppy trading likely to persist as global
volatility continues to weigh on investors confidence. Immediate strong upside
resistance at 1820pts on the KLCI with supoort 1780pts.
