FBMKLCI 1814.04
+18.19pts (+1.01%) Volume 1.946b
Value RM1.834b
1)
The KLCI bucked the trend as it closed at its day high despite the weaker US
market overnight. Regional bourses were mostly flat after China's HSBC PMI data
came in below estimates, SHCOMP +0.10% pared earlier losses as the weaker
data boosts hope for stimulus while HSI -0.39%, NIKKEI -0.21% and ASX closed
+0.22%. In the local market, INDUSTRIAL +1.29% market gained the most grounds
today lifted by heavyweights PCHEM +3.93%, HARTA +2.68%, PMETAL +3.97%, LAFMSIA
+1.01%. Market breath was neutral today as gainers and losers were evenly
matched at 400 : 415. Futures closed at 1817 (3pts premium).
2)
Heavyweights : GENTING +4.81% RM8.70, TENAGA +1.54% RM14.46, CIMB +1.98%
RM6.46, PCHEM +3.93% RM5.55, PPB +3.26% RM15.20, IHH +1.72% RM5.91, GENM +2.19%
RM4.19, KLK +2.07% RM22.60.
3)
DBT: CAP 10mil @ RM0.35 (1.66% PUC), BJAUTO 7.3mil @ RM3.46 (6.5%
discount), WINTONI 5.515mil @ RM0.30.
4)
Situational:-
NOTION
+3.94% RM0.395 - Hard disk drive (HDD) component make Notion VTec Bhd plans to
launch its own smartphone brand, Trendi, by May this year to create a new
revenue stream for the group. According to the executive chairman, the group
aims to sell about 1.0k units of its budget smartphone within the first week of
its launch and they intend to price it below RM500.0. The group added that it
will depend on how the market responds before they decide whether further
investment is required.
5)
ALAM
Alam
announced that MDSV 1 (L) Inc, a wholly-owned subsidiary of Deepsea Leader
Venture (L) Inc, had, signed a Memorandum of Agreement with Wellspring Marine
Trading Ltd for acquisition of offshore support vessel namely OLV Venture 1 for
a total purchase consideration of USD60m
OLV
Venture 1 was built in 2014 and is currently registered in China. The offshore
support vessel is of 85M DP2 6000 brake horse power (BHP).The vessel is planned
to be deployed in the operational waters of Malaysia and South East Asia to
support the exploration and production (E&P) activities in the region.
The
acquisition is expected to be completed by mid of April 2015. Upon completion
of the acquisition, the vessel shall be registered to ply Malaysian flag.
The
acquisition of the aforesaid vessel will be financed partly by proceeds from
the New Share Issuance recently issued by ALAM and borrowing from financial
institution with staggered payment structure.
Alam
was recently awarded an 2 +1 umbrella contract for the provision of spot charter
for marine vessels by Petronas Carigali for its operations in Malaysia. This
vessel could be earmarked for the contract. Hold until better visibility in the
O&G sector particularly OSVs.
6)
Market – Bargain hunting for big caps and the strong bounce in RM indicates a
glimmer of hope for a more sustainable bounce on the KLCI. Immediate upside
resistance at 1830-1838pts range.