Thursday, January 29, 2015

Market Roundup | 28 January 2015


FBMKLCI   1795.88pts   -7.29pts (-0.40%)      Volume 2.011b   Value 2.312b


1)  The KLCI closed below the 1800 resistance level today as the U.S market reported its biggest decline in 3 weeks following weaker data and earnings. In the regional market, bourses were mixed as  SHCOMP -1.41% fell on concerns about tighter credit margin leading to lower liquidity in the market, NIKKEI +0.15% and HSI +0.22% however closed flat as investors fled to the sidelines amid the volatile oil price swing. In the local market, INDUSTRIAL -1.31% index lost the most grounds today dragged by  heavyweights, PCHEM -4.14%, PETGAS -0.53%, KOSSAN -2.64%, CMSB -1.86% while the PLANTATION index +0.69% rebounded. Market breadth was negative as gainers outpaced losers by 440 : 340. Futures closed at 1793 (2 pts discount).

 

 2) Heavyweights : MAYBANK -2.57% RM8.69, PCHEM -4.14% RM5.32, TENAGA -1.33% RM14.80, AXIATA -0.83% RM7.14, IHH -0.94% RM5.23, GENM +4.32% RM4.10, FGV +4.58% RM2.51, DIGI +0.78% RM6.44.


3) DBT: BJLAND 13mil @ RM0.75, KANGER 5.379mil @ RM0.45, TAKASO 4.5mil @ RM0.64 (2.27% PUC), WELLCAL 1.5mil @ RM1.78

 

4) Situational:-

TAS +0.66% RM0.75 - TAS Offshore Berhad, has secured contracts for the sale of three vessels. The company says it secured contracts for one Offshore Construction Vessel (OCV) and two Anchor Handling Tug Supply Vessels (AHTS). The total value of the contracts is approximately RM143.24 million ($39.76 million).

 

YINSON - Yinson have been awarded a contract for the chartering, operation and maintenance of a FPSO facility by eni Ghana exploration & production ltd. at the Offshore Cape Three Points Block. The estimated aggregate value of the Contract (excluding reimbursable and cost escalation) during the firm charter period is approximately up to USD2.539 billion and an estimated total aggregate value of up to USD3.256 billion if eni Ghana exercises all 5 yearly extension options. The FPSO is expected to commence operations in the OCTP block in 2017. Buy.

 

5) SIME

SD Plantation obtained formal clearance from the European Commission on the European Union merger filing for its merger with New Britain Palm Oil Limited (NBPOL) for USD1.74bn. Pursuant to the clearance from the EU Commission, the condition on the EU merger filing has now been fulfilled.

+ve as main conditions for this acquisition has been fulfilled and paves the way for the completion of this exercise.

 

6) Market – Uncertainties over Greek credit ratings and guidance from the FOMC should see cautious trading stance continue for the balance of the week.