Wednesday, January 7, 2015

Market Roundup | 6 January 2015

FBMKLCI   1716.58pts    -20.04pts (-1.15%)      Volume 1.637b   Value 1.858b

1) The KLCI extended its losing streak inching towards the 1700 support following the dismal performance from Wallstreet overnight after oil prices tanked to $50 per barrel. In the regional market, bourses were mostly negative led by NIKKEI -3.02%, HSI -0.91%, ASX -1.57% all closed deep in the red while SHCOMP +0.03% bucked the regional trend having recovered to close just flat helped by financial related names. In the local scene, FINANCIAL  -1.78%  index lost the most grounds amongst the sectors weighed by MAYBANK -2.22%, CIMB -2.19%, PBBANK -1.23%. Market breadth was generally negative with losers outpacing gainers by 638 : 180. Futures closed at 1704.5 (12 pts discount).

2) Heavyweights : MAYBANK -2.22% RM8.80, PBBANK -1.23% RM17.60, GENTING -3.43% RM8.43, CIMB -2.19% RM5.34, PCHEM -3.46% RM5.01, AXIATA -0.85% RM6.94, TENAGA -0.57% RM13.76, AMBANK -2.17% RM6.30.

3) DBT: PMHLDG 6mil @ RM0.425, AEM 1.11mil @ RM 0.15, MUIPROP 1mil @ RM0.47, YINSON 750k @ RM2.72

4) Situational:-
ALAM  +1.63% RM0.62 - Alam entered into Shareholder’s Agreement with Vallianz International Pte Ltd, a wholly-owned subsidiary of Vallianz Holdings Limited, offshore support vessel owner and operators listed on Catalist  of Singapore Exchange based in Singapore to form a Labuan based company called Deepsea Leader Venture (L) (ALAM: 51.0% VALLIANZ: 49.0%). The purpose of the tie-up is for the owning offshore support vessels operating in Malaysia’s upstream market and any other incidental activities.

5) TChong
 Tan Chong Motor  has unveiled the new Nissan Almera today with more aggressive and aerodynamic features. The model features a newly-designed front bumper with signature three-dimensional front grille and new multi-reflector headlamps among others. The previous version has sold 56,000 units. The car comes in 4 variants beginning with RM66,900 (E variant Manual).
Comments: This model should help TC wrestle back some market share particularly in the B segment where they lost ground in the overall market share to Honda last year dropping to third. The failure of its regional expansion thus far also continues to weigh on group profits. Expect the stock to continue to underperform.
 
6) Market – Current bleak news flow and sentiment particularly on oil dependant economies will see further downside pressure on the KLSE. A stronger base likely only around the 1680pts on the KLCI.