Tuesday, December 16, 2014

Market Roundup | 12 December 2014


FBMKLCI   1732.99pts      - 11.58pts     (-0.66%)     Volume  1.451b   Value 1.784b

 

1) The KLCI continue to face selling pressure after oil prices slide below the $60 level overnight, the U.S market rose decisively in the earlier session on robust consumer spending but retraced to close just marginally above the overnight level. In the regional scene, SHCOMP +0.42% gained after slowing growth in the industrial production numbers boosted speculation of more policy easing in the near term, NIKKEI +0.21% and STI +0.45% gained inline with optimism of the region. In the local scene, PROPERTY-1.46% names took a beating as the sector index was weighed down by E&O -7.45%, UEMS -2.63%, SPB -6.25%, MRCB -4.00%, MATRIX -7.19%. Market breadth was negative today as loser tower over gainers. Futures closed at 1725 (8pts discount).

 

2) Heavyweights : SKPETRO -7.17% RM2.20, SIME -2.12% RM9.20, ASTRO -7.80% RM3.07, MISC -3.45% RM6.89, PETGAS -1.91% RM21.50, FGV -5.45% RM2.60, MAXIS -1.50% RM6.55, CIMB +1.27% RM5.59

 

3) DBT : IGBREIT 10mil @ RM1.28, ARK 5.056mil @ RM0.516, ZECON 3mil @ RM0.90 (2.51% PUC)

 

4) Situational:-

ARMADA -0.97% RM1.02 - PT Armada Gema Nusantara, a consortium led by a Bumi Armada subsidiary, has signed a contract worth RM4.0b to supply a Jakarta based oil-and-gas company with one floating, production, storage and offloading (FPSO) vessel. The signing follows several announcements made by Bumi Armada beginning in Aug 19, 2014 on the Letter of Intent issued by Husky-CNOOC Madura Ltd (HCML) for the award of the contract to PT AGN. PT AGN is an Indonesian joint venture comprising Bumi Armada Offshore Holdings Ltd and PT Armada Gema Marine Services. According to Bumi Armada, the contract is for a period of 10 years, with options for five annual extensions.

 

5) KOSSAN

 

Ideal Quality Sdn. Bhd, a wholly-owned subsidiary of the Company, has on even date entered into a  Sale and Purchase Agreement with  Himpun Menang Sdn. Bhd (Vendor) for the acquisition of  a piece of vacant  freehold industrial land  measuring in area approximately 5.3292 hectares held under Geran 52935 Lot 6103, Mukim Kapar, Daerah Klang, Selangor for a total cash consideration of Ringgit Malaysia 39,007,631.00.

 

The acquisition is in line with the Group’s strategy to replenish its land bank to generate long term sustainable income and viability. The Proposed Acquisition will be funded through internally generated funds and/or bank borrowings.

 

Barring any unforeseen circumstances, the Proposed Acquisition of the  Property is expected to be completed by the 1st quarter of financial  year 2015. +ve

 

6) Market: Market sentiment remain weak as commodity prices continue to trend lower. However indices expected to see support from year end window dressing activities.