Potissimus Optimus: Market Roundup

Tuesday, March 17, 2015

Market Roundup | 17 March 2015

FBMKLCI 1787.87
+7.33pts (+0.41%) Volume 2.494b Value
RM1.835b

1)The KLCI was inline with the global sentiments following the stronger US market overnight ahead of the 2 day FOMC meeting tonight. Regional bourses were also higher as the NIKKEI +0.99% gained after BOJ maintained stimulus, SHCOMP +1.55% gained on more stimulus bets, KOSPI+2.14% while the HSI pared gains to close down 0.20%. INDUSTRIAL +0.71% index gained the most grounds today boosted by heavyweights PETGAS +1.06%, MISC +1.22%, PPB +1.96%, LAFMSIA +1.93%. Market breadth was however, negative as losers beat gainers by 490 : 347, Futures closed at 1784.5 (3pts discount).

2) Heavyweights : MAYBANK +0.77% RM9.16, CIMB +0.84% RM5.96, GENM +1.72% RM4.14, GENTING +1.10% RM8.24, PETGAS +1.06% RM22.72, TENAGA +0.41% RM14.68, PBBANK +0.32% RM18.40, PPB +1.96% RM14.50.

3) DBT: RAYA 5.5mil @ RM0.16 (4.21% PUC), YTL 3.739mil @ RM1.58, SMRT 3mil @ RM0.52

4) Situational:-

PUNCAK -1.53% RM2.56 - Puncak Niaga Holdings Bhd (PNHB) has given Selangor state’s unit Pengurusan Air Selangor Sdn Bhd (Air Selangor) a third extension to fulfill the conditions precedent stated in the agreement signed last year. The agreement, signed on Nov 11, was for Air Selangor to buy PNHB’s wholly-owned unit Puncak Niaga (M) Sdn Bhd and 70.0%- owned subsidiary Syarikat Bekalan Air Selangor (Syabas) for RM1.6. PNHB said on Monday its directors agreed to grant the requested onemonth extension to April 9.

IHH +0.91% RM5.50 - Less than three months after divesting seven nursing homes in Japan, IHH Healthcare Bhd’s associate Parkway Life REIT (PLife REIT) is acquiring five more in the country. IHH said that PLife REIT, in which IHH has an indirect 35.8% stake, bought five nursing homes in Japan for RM182.6m. Manager Parkway Trust Management Ltd explained there would be a higher demand of eldercare facilities in Japan, given that it is the country with the highest life expectancy and that those aged 65 or above are expected to reach nearly 40.0% of the population by 2060.

5) AIRLINES

Just when it seemed like the Airline industry was facing some headwinds, flymojo, a new Malaysian airline, has signed a deal with Canada's Bombardier Commercial Aircraft to buy 20 CS100 aircraft for US$1.47 billion.

Upon execution of a firm purchase agreement, flymojo, which will be based out of Johor Bahru (Johor) and Kota Kinabalu (Sabah), is expected to become the first customer and operator of the CS100 aircraft in the region.
With flymojo's primary hub at Senai International Airport and secondary hub in Kota Kinabalu, the airline's fleet of CS100 aircraft is targeted at improving connectivity between Peninsular Malaysia, Sabah and Sarawak and other parts of the region.

Likely to add further pressure to the ASP of incumbent players who are already feeling the squeeze of competition.

6) Market: Volatility looks likely to continue with the guessing games on the US Fed rate policy. Support on the KLCI remains 1780pts.