Monday, December 8, 2014

Market Roundup | 5 December 2014


FBMKLCI   1749.37   3.68pts   (+0.21%)     Volume  1.402b   Value 1.808b
 
1) The KLCI swung between gains and losses in the morning session before closing in positive territory led by gains in selected blue-chips. In the regional market, bourses ended mostly higher with the SHCOMP +1.36%, HSI +0.71% and NIKKEI +0.19% in anticipation on the November U.S. job report later today. In the local scene, the TECHNOLOGY index +2.16% gained the most ground led by INARI +5.53%, GHLSYS +2.88%, MPI +2.72%, UNISEM +2.72%. Market breadth was positive as gainers led loser by 459 : 330. Futures closed at 1748.5 pts (0.87pts discount)
 
2) Heavyweights : TENAGA +3.82% RM13.60, PBBANK +0.78% RM18.16, SIME -1.35% RM9.51, KLK -2.50% RM21.84, DIGI +1.17% RM6.06, BAT -2.57% RM67.52, GENTING -1.2% RM9.05, PETDAG +5.0% RM16.80
 
3) DBT : YINSON 3.50mil @ RM2.51 (4.20% discount), TITIJYA 3.066mil @ RM1.83 (2.14% discount), SNTORIA 3.0mil @ RM1.28 (2.29% discount).
 
4) Situational:-
SCABLE -0.70% RM1.42 : Sarawak Cable Bhd has bagged a RM257.0m contract for the overhead transmission line from Petroliam Nasional Bhd's plant in Pengerang, Johor to the Peninsular Malaysia grid. The company said its unit Trenergy Infrastructure Sdn Bhd has received a letter from Petronas' subsidiary Pengerang Power Sdn Bhd for the job which would involve the EPCC for the Pengerang 275kV overhead transmission line from the Pengerang cogeneration plant to the grid and 275kV/132kV Pengerang substation.
 
NIHSIN -7.06% RM0.395 : Ni Hsin Resources Bhd has signed a memorandum of understanding (MoU) with Helios Photovoltaic Sdn Bhd (HPSB) to start discussions on a possible stake in HPSB's business and growth.Under the MoU, Ni Hsin and HPSB have jointly agreed to commence discussions and negotiations exclusively on the structures and terms of the proposal which may involve the acquisition of HPSB in its entirety by Ni Hsin, or such other mode of investment as agreed upon. Ni Hsin said in a statement yesterday that the MoU is valid for six months unless extended by both parties. There is no capital commitment on Ni Hsin at this stage except for expenses expected in undertaking due diligence in relation to the proposal.
 
5) MYEG
 
The Board of Directors of MYEG wished to announce that on 5 December 2014, the Company has accepted a revised Letter of Award dated 3 December 2014 to undertake the EMS Project from Customs.
 
The tenure of the EMS Project is 6 years and will commence from 1 December 2014. The estimated total value of the EMS Project is approximately RM180 million. With the acceptance of this Letter of Award, the Government of Malaysia and the Company agree that the Letter of Award dated 13 February 2014 in relation to the above be and is hereby cancelled.
 
It is expected that the EMS Project would contribute positively to the earnings of the Company for the financial year ending 30 June 2015 onwards. The source of funding for the EMS Project is expected to be obtained from internally generated funds and bank borrowings.
 
The much awaited EMS project has been given the final approval after delay from initial start date of Apr'14.
 
6) Market:  Expect KLCI to continue its consolidation pattern with local main funds supporting for year end closing.