Wednesday, January 28, 2015

Market Roundup | 27 January 2015



FBMKLCI   1803.17pts    +6.73pts (+0.37%)      Volume 2.049b   Value 2.186b

1)  The KLCI closed decisively above the 1800 resistance following the modest performance by the U.S market after investors shrugged off the Greek Election results. In the regional market, bourses were mixed as NIKKEI +1.72% rebounded following the weaker Yen, SHCOMP-0.89% and the HSI -0.41% both fell amid concerns of a drop in profit growth amongst the Industrial names as well as the previous sharp fall in China Yuan. In the local scene, Industrial index gained the most grounds helped by PCHEM +3.73%, CMSB +4.39%, KNM +6.14% and VS +4.33%. Market breadth was positive as gainers edge losers by 447 : 366. Futures closed at 1801pts (2 pts discount).


 


 2) Heavyweights : PCHEM +3.73% RM5.55, CIMB +1.46% RM5.54, FGV +9.09% RM2.40, TM +1.59% RM7.02, PBBANK +0.33% RM18.12, GENTING +0.91% RM8.84, TENAGA -0.53% RM15.00, GENM -1.25% RM3.93



3) DBT:  CME 10mil @ RM0.065 (2.26% PUC), XINGHE 10mil @ RM0.08, KRETAM 7.86mil @ RM0.46, SNTORIA 4mil @ RM1.15 (3.4% discount).


 


4) Situational:-


AAX +2.22% RM0.69 - AirAsia X Bhd's CEO Azran Osman Rani, who led the start-up team that developed its business plan, has resigned and is currently on garden leave while serving out his notice, according to new report. His last day is expected to be this Friday. Ezran was appointed CEO in July 2010. His initial contract of employment which was for a period of three years, has since been extended by another three years, from July 4, 2013.


 


5) Benelac


The company announced that the Detailed Environment Impact Assessment Study submitted jointly by Spektrum Kukuh Sdn Bhd (a company in which Benalec Holdings Bhd has a 70% equity interest held through its wholly-owned subsidiary Benalec Sdn Bhd) and Perbadanan Setiausaha Kerajaan Johor, has been officially approved by the Department of Environment.  The DEIA study pertains to the reclamation works for the Group’s Tanjung Piai Integrated Petroleum & Petrochemical Hub and Maritime Industrial Park project which comprises a man-made island to be sited off the south-western coast of Johor.


Spektrum Kukuh Sdn. Bhd  entered into a binding term sheet with The State Secretary, Johor and 1MY Strategic Oil Terminal Sdn Bhd to undertake the reclamation works and sale of approximately 1,000 acres of land off the coast of Tanjung Piai, Johor Darul Ta’zim for the purpose of constructing and operating a crude oil and petroleum storage facility together with a private jetty.The latest extension is until 11 June 2015.


This is the major rerating catalyst that the market has been waiting for the past two years as it could kick off its massive land reclamation concession in Tanjung Piai (3,485 acres) with 1MY the major offtaker. BUY.


 


6) Market – Choppy market conditions to continue with investors now focus on rhetoric coming from the FOMC on guidance for its timing on its imminent rate hike.