Monday, January 5, 2015

Market Roundup | 2 January 2015

FBMKLCI   1752.77pts    -8.48pts (-0.48%)      Volume 1.075b   Value 0.922b
 
1) The KLCI opened 2015 in the red touching a day low of 1741.45 (-19.8pts) before paring some of the loss towards the end of the session on continued weakening of the Ringgit and slump in CPO futures. In the region, bourses started the new year in positive territory on light post-holiday trade led by the HSI +1.07%, which saw robust performance in the property and financial sectors on continued expectation of liquidity injection by the PBOC; followed by the ASX +0.46% and STI +0.12%. NIKKEI and SHCOMP remained closed. In the local scene, the PLANTATIONS -0.97% index lost the most ground led by KLK -3.51%, IJMPLNT -6.91%, TSH -2.59%, TDM -3.61%, TMAKMUR -3.85%. Market breadth was skewed negatively with losers edging gainers by 394 : 312. Futures closed at 1745.5 (7 points discount).
 
2) Heavyweights : KLK -3.51% RM22.00, SIME -1.31% RM9.07, PBBANK -0.44% RM18.22, MAYBANK -0.55% RM9.12, MAXIS -1.17% RM6.77, PCHEM -1.28% RM5.38, PBB -2.09% RM14.00, BAT -1.69% RM64.00
 
3) DBT: SANICHI 12.5mil @ RM0.10 (10% premium), HARNLEN 2.783mil @ RM0.935 (14% discount), MTRONIC 2.56mil @ RM0.085 (6.3% premium)
 
4) Situational:-
 
BREM +0.98% RM1.03 - announced that it has disposed 114,000 ordinary shares representing a 2.2% stake in Titi Kaya Sdn Bhd (TKSB), which is primarily in property development and investment, to Kepong Haemodialisis Centre Sdn Bhd for RM1.89 million, cash. Brem is expected to gain RM942,677 from the disposal, which it said will be utilised as working capital. The disposal will reduce Brem's stake in Titi Kaya from 50.5% to 48.3%. Consequently, Titi Kaya will no longer be a subsidiary but an associate company. This disposal is part of the internal re-organisation exercise of Brem's Group of companies and it is expected to enhance contribution from the construction segment of the Brem Group of companies.
 
5) IJM
 
IJM Construction Sdn Bhd, a wholly-owned subsidiary of the Company, has today accepted the Letter of Award issued by NRY Architects Sdn Bhd on behalf of Pearl Discovery Development Sdn Bhd for the construction and completion of superstructure works for the proposed mixed development known as "Puteri Cove Residences" on Plot TR-2-2, Mukim Pulai, Daerah Johor Bahru, Johor Darul Takzim for a contract sum of RM538,500,000. The construction period of the Project is 33 months.
 
The Project involves the building works of three (3) blocks of 32-storey serviced apartments (998 units), one (1) block of 5-storey soho (56 units), serviced apartment facilities, two (2) multi-storey car park podiums, two (2) lobbies and 2-storey retail centre.
 
+ve as project boost its orderbook to RM6bn including WCE works of RM2.8b and RM400m internal jobs. Assuming 7% PBT margin, project is expected to contribute RM12.5m pa for 3 years.
 
6) Market: Weakening RM and Oil prices is expected to weigh on local market.  Expect global market to dictate market direction with better clarity next week as investors return from yearend holidays.