FBMKLCI
1780.54 -1.21pts
(-0.07%) Volume 2.457b Value
RM1.896b
1)
KLCI clawed back from morning weakness and traded mostly in positive territory
before late selling of core blues saw index close marginally lower after a
downbeat session on Wall Street as investors focus turns to the Fed's two-day
meeting beginning Tuesday. Regional bourses were broadly higher led by SHCOMP
+2.24%, touching a 5-year high on rising stimulus expectation by the PBOC which
helped spur the HSI +0.53%, STI +0.51% whilst NIKKEI -0.04% was flat as the BOJ
commenced its monthly meeting today. In the local scene, O&G counters
continued to see selling pressure weighed by COASTAL -4.67%, ARMADA -3.81%,
PENERGY -3.52%, SKPETRO -2.14%, UMWOG -1.40% mirroring the fall in crude oil
prices. Market breadth was negative as losers thumped gainers by 504 : 294.
Futures closed at 1779.5 (1pt discount).
2)
Heavyweights : DIGI +0.97% RM6.28, SKPETRO -2.14% RM2.29, IOICORP +1.11%
RM4.55, GENM -1.21% RM4.07, GENTING -0.73% RM8.15, MAXIS -0.56% RM7.11, PETDAG
+1.73% RM18.78, IHH +0.55% RM5.45.
3)
DBT: REDTONE 74.608mil @ RM0.80 (11.15% PUC @ 3.62% discount), TMS 10.688mil @
RM0.07 (16.7% premium), JIANKUN 1.7mil @ RM0.30 (11.8% discount), PERDANA
1.345mil @ RM1.14 (12.9% premium).
4)
Situational:-
SENDAI+6.54%
RM0.815 - Eversendai Corporation Bhd has secured two new construction contracts
worth RM246 million in Saudi Arabia. The first contract valued at RM203 million
was awarded by the BACS Joint Venture comprising Saudi Arabian Bechtel Company,
Almabani General Contractors and Consolidated Contractors Company WLL, to
construct the East, North & South Depots of the Riyadh Metro project -
Package 1 (Lines 1 and 2) for the Riyadh Development Authority. The Riyadh
Metro is a rapid transit system and part of the Riyadh Public Transport
Project. The contracts were scheduled to be completed by October 2016. This
steel work package is the first of the steel works package in this Riyadh Metro
development and Eversendai is optimistic of securing more steel works packages
in this US$22.5 billion mega project. It had also secured a RM43 million
structural contract for a commercial hangar in Riyadh. The hangar will be used
for the servicing and maintenance of aircrafts.
WCT
-1.24% RM1.60 - WCT Holdings Bhd has proposed to undertake rights issue of
shares, on a one-for-10 basis, to raise RM107.61 million to RM143.23 million.
The proposed renounceable rights issue comprises up to 143.22 million new
ordinary shares of 50 sen each, on the basis of one rights share for every 10
existing WCT shares held. The proceeds will mainly be used for working capital
including repayment to suppliers and sub-contractors. On top of the rights
issue, WCT also proposed a bonus issue of up to 315.09 million new warrants on
the basis of one free warrant for every five existing shares held. Both the
rights issue and bonus warrants are expected to be completed by the third
quarter of 2015.
5)
GBGAQRS/ SURIA
GBGAQRS
entered into a JVA with Suria Capital Holdings Berhad for the purpose of
commercially developing a parcel of prime land within Kota Kinabalu Port area
measuring approximately 7 acres forming part of the piece of master land of
23.25 acres, situated at Jalan Tanjung Lipat, Kota Kinabalu, Sabah into a
mixed development currently provisionally known as One Jesselton
Waterfront comprising the development of residential units, retail
units/shopping mall, office towers, the Retail Mall, Suria Corporate Office,
service suites, service apartments and car parks.
The
Project shall carry a minimum net sale value of RM1.1 billion and the minimum
return to Suria Capital is RM198.0 m, which represents at least 18% of the NSV.
This Suria Capital’s entitlement shall be settled in-kind RM166.4 m and in cash
RM31.6 m
We
are positive over the announcement but cautious nonetheless as Suria Capital in
May 2013 entered into a joint venture agreement with SBC Corporation Berhad to
commercially develop 16.25 acres of the adjoining land is still waiting the
long delayed State level approvals.
6)
Market – Choppy trading to continue around the 1780pts levels as restructuring
in most clients portfolios of their O&G counters continues and concerns
remain over the weakening RM.
