Tuesday, January 6, 2015

Market Roundup 5 January 2015

 
FBMKLCI   1736.62pts      -16.15pts     (-0.92%)     Volume  1.468b   Value 1.411b
 
1) The KLCI continued its losing streak for a 2nd day following the mixed U.S market after ISM manufacturing data missed estimates before the release of Fed Minutes later this week. In the regional market, bourses were mixed as the SHCOMP +3.58% outpaced the rest of the region after China soared to 5 year highs with commodity stocks defying falling oil prices to boost sentiments, while the HSI -0.57% and NIKKEI -0.24% closed slightly below. In the local scene, FINANCE - 1.20% weighed on sentiments led by losses amongst PBBANK -2.19%, MAYBANK -1.31%, CIMB -1.62%, and AMBANK -1.52% following the weaker ringgit. Market breadth was negative with losers beating gainers by 502 : 271. Futures closed at 1730 (6pts discount).
 
Heavyweights : PBBANK -2.19% RM17.82, MAYBANK -1.31% RM9.00, PCHEM -3.53% RM5.19, CIMB -1.62% RM5.46, IOICORP -1.66% RM4.72, GENTING -1.46% RM 8.73, GENM -2.225 RM3.96, SIME +0.88%,
 
3) DBT : SOP 4mil @ RM4.50, SNTORIA-WA 3.665mil @ RM0.55 (4.96% PUC),  LBICAP 3.12mil @ RM1.15 (4.30% PUC), TITIJYA   500k @ RM1.70
 
4) Situational:-
IHH  -1.45% RM4.73 - IHH Healthcare Bhd is believed to be looking at acquiring an 11.5% associate stake in Bangkok Dusit Medical Services Pcl (BDMS), the largest hospital operator listed on the Stock Exchange of Thailand, to gain a foothold in Thailand. It is understood that the acquisition could be funded by a combination of cash and issuance of new shares. The 11.5% stake in BDMS has a market value of THB30.6b (RM3.3b) based on the last closing price of the company’s shares at THB17.20. The acquistion will be funded internally and externally, the quantum of which will be determined later by the company.
 
SNTORIA  0.00% RM1.22 - Sentoria Utara Sdn. Bhd. a 75% owned subsidiary of the Company, has on 2 January 2015 entered into a sale and purchase agreement with Ideal Appraisal Sdn. Bhd  to land measuring approximately 304.605 acres in total area for a purchase consideration of RM46.44m. the Lands are expected to generate an estimated gross development value of approximately RM800 million. Based on the purchase price only RM3.50/sq ft, the land cost works out to be only 5.8% of the total GDV. This addition will push its GDV towards the RM10bn mark. BUY
 
5) EVERSENDAI
Secured the Nas Arena contract worth RM44 million through its subsidiary company in Dubai. The company was awarded the contract for the connection design, fabrication, supply and erection of structural steel works for the Nas Indoor Futsal and Volleyball Arena. The Middle East remains the main source of contracts for the company with 80% of the past top line coming from this region. Immediate prospects appear secured with its RM1.6bn order book however there will be potential disappointments going forward from this area with oil prices languishing. Underweight.
 
6) Market – Selling momentum likely to continue as currencies slide against the USD with concerns over Greece and its effects on the Euro. Immediate support for the KLCI seen at 1720pts with a possibility of breaking below the 1700pts again if these levels are not maintained.