FBMKLCI
1778.27 pts -42.62 pts
(-2.34%) Volume 2.76b Value RM2.96b
1) The KLCI saw heavy selling today shedding the most
points this year dragged down by the O&G stocks coupled with significant
weakness in the Ringgit. In the regional market, the NIKKEI +0.75% hit a 7-year
high on stronger increase in capital spending whereas the HSI -2.58%, ASX -1.98%
and SHCOMP -0.08% saw significant weakness after a poor reading on China's HSBC
PMI hit a six-month low of 50. In the local market, the INDUSTRIAL PRODUCTS
-5.76% fell the most weighed by losses amongst COASTAL -15.51%, PCHEM -8.88%,
PETGAS -7.57%. Market breadth was negative with losers thumping gainers 981 :
82. Futures closed at 1768.5 pts (9.8 points discount)
2) Heavyweights : MAYBANK -3.4% RM9.14, PCHEM -8.9%
RM5.13, PETGAS -7.6% RM21.00, SKPETRO -10.4% RM2.51, CIMB -3.6% RM5.62, SIME
-2.5% RM9.44, TENAGA -1.4% RM14.06, PBBANK -1.1% RM18.38
3) DBT : ECOFIRS 20m @ RM0.20 (2.74% PUC @ 35% discount),
ARMADA 5m @ RM1.01, PNEPCB 3.095m @ RM0.9420
4) Situational
WCT -3.2% RM1.81 - has entered into a related party
transaction to dispose properties to its directors for RM18.9 million. Gemilang
Waras Sdn Bhd today signed separate sale and purchase agreements with companies
related with Taing Kim Hwa, Goh Chin Liong and person connected with the
director on properties sales.The related parties had on Dec 1 purchased
"retail shops, Phase 4C-3" at Bandar Bukit Tinggi 2 in Klang,
Selangor.
Taing, who is the managing director and a major
shareholder of WCT, had purchased eight units of the retail shops from Gemilang
Waras for RM13.34 million. Meanwhile,
Goh, who is the deputy managing director of WCT, had purchased four units of
the retail shops worth RM5.56 million.
5) MUDAJAYA -
Company announced securing a contract with Siemens
Malaysia in relation to the Construction and Completion of the Main Civil Works
for Pengerang Cogen Power Plant, Johor with a contract price of RM55.5
million. The Main Civil Works (without
Optional Works)is expected to complete by 5 February 2016. In the event that
the Customer orders the Optional Works, Mudajaya shall be entitled to an
equitable adjustment to reflect the increase or decrease in time required to
perform the Optional Works or any part thererof. The Optional Works are valued
at RM157.9 million.
One of the few contract wins by the company this year.
The slow replenishment of its order book will see investors look elsewhere for
better exposure to the construction sector ie Gamuda and IJM.
6) Market - Today's sharp sell off should see some
bargain hunters emerge especially in battered down O&G names, however any
significant move back to pre Nov prices will need a significant and sustainable
recovery in oil prices. KLCI next support levels seen at 1764pts levels.