Market Roundup | 16 April 2015

FBMKLCI   1847.94    +7.81pts
(+0.42%)      Volume 2.695b   Value RM2.521b

 

1) The KLCI closed higher inline with the stronger US market overnight as oil prices continued to rallied on reports of lower production. In the regional market, bourses were stronger led by the SHCOMP +2.71%  which rose to 7 year highs despite concerns over the increase in margin trading in the country, HSI +0.44%, ASX +0.66% , HSCEI +1.72% also gained amid improving sentiments. In the local scene, CONSTRUCTION +1.74% index gained the most  grounds today led by IJM +2.79%, GAMUDA +1.55%, EKOVEST +3.70%. Market breadth was positive today with gainers beating losers by 517 : 340. Futures closed at 1845 (3 pts discount).

 

2) Heavyweights : PBBANK +1.15% RM19.24, MAYBANK +1.17% RM9.45, TENAGA +0.97% RM14.44, SKPETRO +3.07% RM2.68, IHH +1.92% RM5.83, GENTING +1.01% RM8.97, CIMB -1.44% RM6.15, TM-1.35% RM7.30

 

3) DBT: ALAM 34mil @ RM0.715 (3.67% PUC), BARAKAH 7.8mil @ RM0.90, JAKS 6mil @ RM0.70

 

4) Situational:-

ECOWLD  +1.11% RM1.82 - Eco World Development Group Bhd will ink a deal next week with the Penang Development Corp (PDC) to purchase 190.2ha in Batu Kawan and in the process become a major property developer in the state. Eco World, which was the only bidder for the land, would pay about RM1.0b or RM50.0 per sq ft for the 190.2ha. The group will sign the sale and purchase agreement with PDC at a later date, but it is learnt that the award would be handed out next week in a ceremony to be attended by Eco World chairman Tan Sri Liew Kee Sin.

 

 

5) TM

TM in support of the Govt initiative to boost broadband take up has introduced 2 new Broadband packages. First a RM38/mth for 1Mbps with data use of 1GB vs existing RM88/mth available from 16^th June 2015. Under UniFi, a 10Mbps triple play package at RM179/mth for 10Mbps will replace the existing package at RM199/mth.

Likely to set another price war in the broadband space amongst the telco players as this area continues to register the strongest growth.

 

6) Market – The slight recovery in the RM and rebound in oil will help in rebuilding investor confidence in the market and prolong the current recovery particularly in the mid cap space.