FBMKLCI
1823.15 +4.29pts (+0.24%)
Volume 2.293b Value 1.855b
1) The KLCI continue to climb for a 3rd day straight day
following the stronger US market before the weekend which was boosted by
another set of stronger corporate earnings report. In the regional market
however, bourses were mixed as the HSI- 0.68% and SHCOMP -0.51% fell after the
widely anticipated HK exchange trading link between the mainland and HK was
delayed due to pending regulatory approval, NIKKEI +0.63% and ASX +0.86%
however was inline with the positive sentiment from the West. In the local
scene, PLANTATION +2.13% index outperformed the broad market gaining the most
grounds after strong gains amongst selected heavyweights namely KLK +4.26%, FGV
+7.38%, BKAWAN +3.04%, IOICORP +0.42% RM4.75. Market breadth was positive today
with gainers outpacing losers by 633 : 230. Futures closed at 1817.5 (6 pts
discount).
2) Heavyweights :KLK +4.26% RM21.98, FGV +7.38% RM3.49,
MAXIS +2.29% RM6.68, GENTING +1.51% RM9.41, CIMB -1.90% RM6.17, SIME -0.84%
RM9.40, PETGAS -1.35% RM21.90, SKPETRO -1.66% RM3.54.
3) DBT : TITIJYA 3.6mil @ RM2.13 (1.01% PUC @ 0.5%
discount), WTHORSE 3.45mil @ RM2.10 (1.43% PUC @ 1.9% discount), EXTOL 2mil @
RM0.28 (1.439% PUC).
4) Situational:-
CRESBLD +3.65%
RM1.42 - Contractor and property developer Crest Builder Holdings Bhd is
confident that its soon-to-be-launched RM1.04bn transit-oriented-development at
Dang Wangi light rail transit (LRT) station will achieve a good take-up rate,
despite being priced above the affordable range amid a slowing property market.
Dubbed The Bank, prices of its service apartments house above the Dang Wangi
LRT station are expected to go for RM1,300 per sq ft (psf), and the group is
targeting 50% of buyers to be foreigners.
PRLEXUS + 5.00% RM1.68 - Garment manufacturer Prolexus
Bhd gained today after announcing a 2 for 5 bonus issue on Friday. The proposed
bonus issue would be fully capitalized from the company's retained profits.
5)KULIM
Kulim's wholly owned subsidiary entered into a joint
operating agreement with PT RBB and PT GSB to participate in the exploration
and development of oil & gas field in South West Bukit Barisan Block
("SWBB Block"), Central Sumatera, Indonesia, Under the JOA, the
Co-Operators are obliged to provide support to the Operator to perform its
obligations under the SWBB Production Sharing Contract.
The Operator is required to carry-out the on-going work
program, amongst others, Geological and Geophysical Study, Seismic Study and
exploration of existing and/or new well at the SWBB Block. The total cost for
exploration activities in 2015-2018 is estimated at USD53.65 million or
approximately RM175.7 million. In return for the Co-Operators support to the
Operator, it is agreed that KENSB is entitled to 60% of the net profit from the
Project, while the remaining balance shall be for the other parties, subject to
provisions in the SWBB PSC and prevailing tax applicable to each party.
Funding will largely come from the divestment of its
48.97%-subsidiary, New Britain Palm Oil Limited, with RM850 million of the
gross proceeds to be raised from the proposed disposal earmarked to grow and
expand its existing businesses and/or inject into other viable assets or
businesses that have good fundamentals and growth prospects.
Kulim is the latest of a long list of company who have
made the jump into the O&G sector which has been the main focus group in
the past few years. However execution risk remains very real as experienced by
the heavy sell off by investors in recent weeks of companies in the same bad
wagon. Kulim's advantage is that they have ready funding from their disposal of
NBOL.
6) Market - Maintain current cautious trading range with
buying on dips recommended ahead of the traditional year end closing.
