FBMKLCI 1781.75pts +11.66pts
(+0.66%) Volume 2.578b Value 2.865b
1) The KLCI rallied for a 2nd day after the stronger U.S market performance overnight following speculation that the ECB will announce its bond buying later today. In the regional market, most of the bourses were also stronger following global optimism and stabilizing oil prices as NIKKEI +0.28%, SHCOMP +0.59%, HSI +0.70%, ASX +0.49% all closed in the green today. In the local scene, overall market volume picked up today boosted by penny stocks, SUMATEC 0.00%, KNM +9.34%, PERISAI +4.08%, which topped the list of the most active; followed by the robust performance by oil and gas names such as SKPETRO +4.86%, BARAKAH +14%, THHEAVY +7.24%. Market breath was positive today as gainers trounced losers by 664 : 253. Futures closed at 1785.5 (4pts premium).
1) The KLCI rallied for a 2nd day after the stronger U.S market performance overnight following speculation that the ECB will announce its bond buying later today. In the regional market, most of the bourses were also stronger following global optimism and stabilizing oil prices as NIKKEI +0.28%, SHCOMP +0.59%, HSI +0.70%, ASX +0.49% all closed in the green today. In the local scene, overall market volume picked up today boosted by penny stocks, SUMATEC 0.00%, KNM +9.34%, PERISAI +4.08%, which topped the list of the most active; followed by the robust performance by oil and gas names such as SKPETRO +4.86%, BARAKAH +14%, THHEAVY +7.24%. Market breath was positive today as gainers trounced losers by 664 : 253. Futures closed at 1785.5 (4pts premium).
2) Heavyweights : PETGAS +3.07% RM22.10, PCHEM +3.52%
RM5.29, SKPETRO +4.86% RM2.80, DIGI +2.09% RM6.35, AXIATA +1.41% RM7.15, MAXIS
+2.28% RM7.16, PBBANK +0.56% RM17.84, CIMB -3.74% RM5.65
3) DBT: KRETAM 5.817mil @ RM0.46, FITTERS 5mil @ RM0.675, TIGER 4.575mil @ RM0.11, YINSON 660k @ RM2.85.
4) Situational:-
IWCITY -9.09% RM1.40 - A Chinese developer
has inked an RM2.4bn deal with Iskandar Waterfront City Bhd (IWCB) to acquire
128 acres of land, a value that underscores one of the highest land transactions
in the Iskandar region to-date. A subsidiary of Shanghai-based state developer
Greenland Holdings Group Ltd has established a joint venture (JV) with
IWCB unit Southern Crest Development Sdn Bhd (SCD) to buy the land, which is
mostly submerged, from IWCB for a sum of RM2.4bn. +ve
5) TNB
1Q Nov
2014
Tover +15% 11bn Net +34%
RM2.35bn
EPS 41.7sen
Cons(f) 6.02bn
The higher tover was driven by the
electricity demand growth in Pen Msia of 3.3% contributed by the commercial and
industrial sectors. Forex translation gain this qtr amounted to RM45.9m. Op
expense rose 3.6% to RM8.42bn as higher generation cost resulting from higher
px of LNG but mitigated by lower coal cost.
6 Major generation projects are on
track with Janamanjung Unit 4 1000MW COD 31 Mar 2015, Hulu Trengganu Hydro
265MW COD Sep 2015 U1, Ulu Helai Hydro 372MW COD Dec 2015 U1, Janamanjung Unit
5 1000MW COD Oct 2017, Prai 1070MW COD Jan 2016, Connaught Bridge 385MW Sep 2015.
Foreign shareholdings have remained
stable at around the 25% level for the past 3mths ending Dec 2014 despite the
recent exodus by foreign funds in Msia.
+ve despite no tariff review this
year the company managed to improve margins on the back of a healthy fuel mix.
Trading at undemanding px/bk ratio of 1.8x and PE of 10x, it remains a core
holding and we recommend an accumulate on any weakness.
6) Market – The current global
rebound sustainability could hinge on Drahghi’s QE decision this evening. Assuming
expectations are met, mid cap names will continue to outperform.