Monday, January 12, 2015

Market Roundup | 9 January 2015


FBMKLCI   1732.44    +4.38pts (+0.25%)      Volume 1.717b   Value 1.809b

1) The KLCI saw volatile trading today as the index rose to a 10pts high before closing just +4pts at the end of day. This was inline with the stronger U.S market which rebounded after one of the Fed President (Chicago) released a dovish statement showing his confidence in the U.S economy. In the regional market, bourses were mixed today as the NIKKEI +0.18% slightly higher, the HSI +0.35% closed marginally higher shrugging off the weaker price data in China; the SHCOMP -0.24% however closed -0.24% lower. In the local scene, while the oil and gas names, PERDANA+5.88%, YINSON +2.08%, UMWOG +4.14%, SKPETRO +3.41% remained robust, the PROPERTY index +0.96% gained the most grounds today helped by IOIPG +2.76%, E&O +4.01%, SPSETIA +1.20%. Market breadth was positive today as gainers edge losers by 424 : 339. Futures closed at 1727.5 (5 points discount)

 

2) Heavyweights : PCHEM +3.26% RM5.06, SKPETRO +3.41% RM2.42, IHH +2.09% RM4.87, PPB +3.33% RM14.26, MAXIS +1.47% RM6.90, SIME +0.87% RM9.18, MAYBANK -1.03% RM8.61, KLK -2.80% RM22.16.

3) DBT: EDUSPEC 5.0mil @ RM0.25, LBICAP 3.12mil @ RM1.15, BORNOIL 2mil @ RM0.915

4) Situational:-
IJMLD +1.77% RM3.44 / IJM +0.30% RM6.61 - IJM Corporation Bhd expects to finalise the full privatisation of IJM Land Bhd by April this year after obtaining unanimous shareholders approval at the Extraordinary General Meeting (EGM). The firm also expects to gain an additional RM1bn onto its existing RM6bn order book by the end of its financial year in 31 March, on the back of the Kuantan Port expansion.

5) Integrax

Tenaga has launched a conditional take over offer for all the remaining Intergrax shares it does not own at a cash offer of RM2.75/share. TNB currently holds 22.12% of the PUC in Integrax. The offer is conditional of TNB receiving 50% or more of the voting shares on or before the close of the offer which shall be no later than 60days from the posting date. The other major shareholders of Integrax are Golden Initiative S/B 13.59% and Corston Smith Asset Mgt 5.46%.

The price offered by TNB is a 19.5% premium over the closing price of RM2.30 and represent a new high for the company hence we feel the GO is likely to be successful.

6) Market – The run up experienced in the past few days is likely to see some profit taking in the earlier part of next week with a resistance on the KLCI seen at 1750pts. Medium term outlook remains uncertain and volatile trading is set to prevail.