FBMKLCI
1811.58 -1.67pts (-0.09%) Volume 2.124b Value 1.939b
1) The KLCI closed flat following the weaker U.S market
as investors shrugged off the stronger jobs data and remained cautious ahead of
the Greek's deadline next week. In the regional market, bourses were mixed as
the NIKKEI +0.36%gained on weaker yen, SHCOMP +0.62% rebounded despite the
weaker trade data as it launched its first equity options which allows
investors to hedge, HSI -0.64% however trended lower. In the local scene,
selected water related stocks continue to gain momentum as the volume picked up
for the 2nd day in, JAKS +1.78%, SALCON +4.19%, ENGTEX +1.81%. Market breadth
was negative as losers beat gainers by 426 : 392. Futures closed at 1800.5
(11pts discount).
2) Heavyweights : CIMB -1.72% RM5.70, PETGAS -1.33%
RM22.12, GENM -0.95% RM4.14, GENTING -0.56% RM8.75, YTL -1.14% RM1.73, MAYBANK
+0.78% RM9.00, RHBCAP +3.75% RM8.30, TENAGA +0.40% Rm14.88.
3) DBT: BORNOIL 10mil @ RM0.87 (2.84% PUC @ 9.9%
discount), GESHEN 2.5mil @ RM0.52 (3.12% PUC), KANGER2.16mil @ RM0.40.
4) Situational:-
TMCLIFE +12.5%
RM0.72 - TMC Life Sciences Bhd, a healthcare operator and investment holding
company controlled by businessman Peter Lim, has entered into a RM400 million
related party deal to acquire Thomson Iskandar, a medical hub project located
on 1.6ha of freehold land in Johor Bahru. TMC has entered into an agreement
with Best Blend Sdn Bhd, also partly owned by Lim, to acquire the entire issued
and paid up share capital of BB Waterfront Sdn Bhd (BBWF), which is the owner
of Thomson Iskandar. The purchase consideration shall be settled by the
issuance of 533.33 million new TMC shares at an issue price of RM0.75 per
share, together with 266.66 million free warrants.
5) CIMB : announced that it will be closing its offices
in Sydney and Melbourne. This follows an announcement last Friday where CIMB
stated it was looking to reduce its Asia Pacific investment banking and
equities operating cost by 30% in 2015. The realities of capital markets and
the absence of sufficient flows today have directly contributed to this
decision, group said. CIMB will continue to support its clients who want access
to the Australian market through its current strategic alliance with Morgans
Financials Limited - Neutral on news.
CIMB recently unveiled its Target 2018 (T18) initiative which seeks to
achieve the following targets by 2018: (i) ROAE >15%, (ii) CET1>11%,
(iii) cost/income ratio (CIR) <50% and (iv) consumer banking contributions
at 60% of group pretax profit vs 44% in 9M14. While positive over the longer
run, costs may have to rise in the near term before the synergies filter
through, and we see limited near-term catalyst.; Hold
6) Market : Supported by the recovery of crude oil prices
and MYR and possibly improved sentiment boosted by the Chinese New Year
festival, the local market may be expected to trend on an upward bias this week
within a range bound 1800-1850 points. Earnings report card will be the key
focus for the rest of the month as we enter the 4QCY14 reporting season.
