FBMKLCI
1817.13 -4.08pts (-0.22%) Volume 2.245b Value 2.194b
1) The KLCI fell into the red inline with the weaker US
market over the weekend after the country's GDP data disappointed. In the
regional scene, stocks edge higher as China's weekend interest rate cut
partially offsets the softer US data, the SHCOMP +0.78% led the region after
its HSBC manufacturing PMI beat estimates, NIKKEI and HSI also gained +0.15%
& +0.26% respectively. In the local scene, O&G stocks dampen sentiments
after oil giant, Petronas, posted -ve 4Q numbers on non-cash impairments,
namely, SKPETRO, -4.21%, ARMADA -2.63%, PERISAI-3.05%, UZMA -5.88%. Market
breadth was negative as losers outpaced gainers by 617 : 313. Futures closed at
1818pts (1pt premium).
2) Heavyweights : SKPETRO -4.21% RM2.73, MISC -2.61%
RM8.20, AXIATA -0.83% RM7.10, FGV -5.60% RM2.19, ASTRO -4.28%, TENAGA -0.40%
RM14.66, PBBANK +0.98% RM18.50, DIGI +0.78% RM6.40.
3) DBT: CHHB 9.09mil @ RM1.10 (3.29% PUC @ 14.1%
discount), CMSB 4.139mil @ RM4.15, SNTORIA 2mil @ RM1.06 (5.4% discount),
YINSON 1.5mil @ RM2.70 (1.9% discount).
4) Situational:-
BRAHIMS -10.68% RM1.17
- Brahim's Airline Catering Sdn Bhd entered into a settlement agreement
with Malaysian Airline System Bhd (MAS) yesterday, as part of the latter's
recovery plan announced by Khazanah Nasional Bhd in August last year. Brahim's
said among the salient terms of the SA is that, it would commence on Oct 1,
2014 and remain in force until a new catering agreement (NCA) is signed on or
before March 31, 2015. During the interim period, BAC will provide a reduction
of 25.0% of the monthly final bill to MAS, and not compromise on the quality of
meals provided.
5) PESTECH
PESTECH had on 27 February 2015 received a Letter of
Award from Sarawak Energy Berhad in relation to Sarawak Energy's Samajaya
132/33/11kV Substation Establishment in Kuching, Sarawak, for a total contract
value of RM48,363,257.25. This marks the first indoor substation in Kuching
that PESTECH will be building for Sarawak Energy. The Project is expected to
commence on 6 March 2015 and to be completed within eighteen months from the
Commencement Date.
This further adds to the company's order book of RM530m
with outstanding tender book of RM1.6bn.
+ve Although we like the business model and outlook for
the company, the stock has enjoyed a tremendous run up YTD of 44% and
valuations now are beginning to look a bit rich at 18.5x current FY.
6) Market - Uninspiring result reporting period and
continued weak economic numbers will see the KLCI continue to drift lower with
an immediate support level of 1800pts levels.
