FBMKLCI
1748.90 +13.82pts (+0.80%) Volume 1.907b Value 2.121b
1) The KLCI rebounded today following strong gains in
selected bluechips despite the weaker performance by Wallstreet overnight and
oil futures testing 6 year low. In the regional market, bourses were mostly
stronger as the HSI +0.79% and SHCOMP +0.19% gained after China’s trade data
showed an uptick in exports, the NIKKEI -0.64% resumed trading and closed in
the red despite talks of establishing a trading link between Taiwan and Japan.
In the local market, FINANCIAL index +1.92% helped by CIMB +14.28%, RHBCAP
+0.90% after reports the merger could be called off while
biggest
beneficial party, MBSB, fell -5.93%. Market breadth was
positive today with gainers leading losers by 502 : 313. Futures closed at
1743.5 (5 pts discount).
2) Heavyweights : CIMB +14.28% RM5.92, SIME +2.73%
RM9.40, GENTING +1.03% RM8.78, MAYBANK +0.46% RM8.62, AXIATA -0.99% RM6.98,
PCHEM -1.54% RM5.10, SKPETRO -2.41% RM2.43, PBBANK -0.34% RM17.46.
3) DBT: MEGB 29.156mil @ RM0.60 (7.11% PUC @ 11.2%
discount), ECOFIRS 20mil @ RM0.16 (2.73% PUC @ 46.7% discount), BJFOOD 3.974mil
@ RM2.90 (1.07% PUC).
4) Situational:-
MEGB -4.93%
RM0.675 - SMRT Holdings Bhd’s subsidiary, Strategic Ambience Sdn Bhd (SASB) and
Creador II LLC’s unit, Arenga Pinnata Sdn Bhd (APSB), are finalising plans to
acquire a 30.8% stake in Masterskill Education Bhd for RM122.0m. The company
said the acquisition is expected to be completed by end-March 2015. Following
the acquisition of the 30.8% stake, and the 19.3% that Creador currently holds,
they will be the controlling power in Masterskill. Within 12 months, they will
make the business break even and grow it further.
5) EA Technique
Recent new listing EA Techannounced that it has entered
into Bareboat Charter Contract for the
provision of one unit fast support vessel for Classic Marine & Services (M)
Sdn Bhd with a contract value amounting to approximately RM24.64 million. This
Contract is for a period of 5 years with an option to extend, with work
commencing on 15th January 2015 and
shall expire on 14th January 2020.
Outlook remains uncertain for this sector particularly
with Petronas indicating a cut both in capex and opex spending this year. Our
preferred exposure remains Perdana as most of its earnings are derived from
longer term contracts and earning growth expected in 2016 still intact
6) Market – Range bound trading remains especially with
concerns over the fast depreciating RM and falling oil prices. The government
is set to present a clearer picture of the impact of these factors on the
economy next week.
