Wednesday, October 1, 2014

Market Roundup | 30 September 2014


 
 
FBMKLCI   1846.31     -0.03pts   (0.00%)     Volume  2.730b   Value 2.536b
 
 
1) The KLCI erased earlier gains to close just flat as the index showed no traces of window dressing activity at the end of the session. This was inline with the weaker US market overnight that declined amidst concerns in the Middle East as well as the civil unrest in the HK. In the regional scene, bourses were generally weaker weighed by HSI -1.28% & HSCEI -1.23% which declined for a 2nd day as the street of HK closed for the 3rd consecutive day. SHCOMP +0.26% however closed slightly above the overnight level despite the HSBC Flash PMI for September missing consensus. In the local market, CONSUMER +0.46% index remained defensive as UMW, CARLSBG, BAT, PPB gained the most grounds amidst the weaker broad market. Market breadth was negative today as losers beat gainers by 455 : 355. Futures closed at 1842 pts (4 pts discount).
 
 
2) Heavyweights : CIMB -2.22% RM7.03, MISC -2.45% RM6.75, KLK -1.95% RM21.08, GENTING +1.60% RM9.49, TENAGA +0.81% RM12.38, MAYBANK+0.70% RM9.96, UMW +2.85% RM12.26, IHH +1.19% RM5.08
 
 
3) DBT : NIHSIN 21mil @ RM0.355 (8.87% PUC @ 28.8% discount), GBGAQRS 11mil @ RM1.8527 (2.81% discount), BIOSIS 9.791 @ RM0.25 (9.325% PUC @ 92.3% premium).
 
 
4) Situational:-
 
GBH -17.77% - share price fell following the mutual cancellation of the proposed venture into the oil and gas sector via proposed acquisition of Globalmariner Offshore Services  Sdn Bhd for RM38mil, which was linked to a reverse takeover (RTO) of GBH. The company said its unit Ekspresi Tepat Sdn Bhd had mutually agreed to terminate the memorandum of agreement (MOA) to buy Globalmariner from Dynac Sdn Bhd, Zahar Mohd Hashim Zainuddin, Shafinaz Shaukat and Datuk Dr Freezailah Che Yeom.
 
 
5) BIPORT : Samalaju Industrial Port SB, a wholly owned subsidiary of Bintulu Port Holdings has issued the Letter of Acceptance dated 26th September 2014 to Samado Sdn Bhd (the Contractor), for the construction and completion of Proposed Samalaju Port Development Project At Samalaju, Bintulu, Sarawak, Malaysia - Administration Building And Associated Works Package For Phase 1 Works. The Contract Sum is for RM40.4m & shall be for a period of  21 months from the date of Notice to Commence Works; Neutral on news. We believe the 2H14 could be stronger for the group, given the seasonally stronger period. The construction of Samalaju Port is on track and it is scheduled for completion by 1H16, which may stimulate growth. Overall, we are still positive on the long-term prospects of the project as economic activity in Sarawak is expected to pick up due to the SCORE initiative.
 
 
6) Market : Cautious trading expected to continue although key momentum indicator are emerging from its oversold situation, suggesting that a potential reversal could occur. Good buying support seen at 1840 pts, but upside could be capped at 1860 pts, due to lack of short term catalysts & regional political concerns.