Thursday, April 23, 2015

Market Roundup | 20 April 2015


FBMKLCI   1848.66    +2.80pts (+0.15%)      Volume 3.131b   Value RM2.144b
 
1)  The KLCI started the week wavering between gains and losses to close the day marginally higher helped by the wider-than-expected cut on Sunday by the PBOC to lower the reserve requirement ratio by 100 basis points despite a global sell off last Friday. Regionally, markets closed lower with the HSI -2.02%, SHCOMP -1.61%, ASX -0.76%, STI -0.62% fuelled by renewed worries about Greece's cash crunch. In the local scene, the FINANCE index gained the most ground today boosted by PBBANK +0.72%, .CIMB +0.82%, RHBCAP +0.77%, HLBANK +0.29%, TAKAFUL +1.51%. Market breadth was negative with losers outpacing gainers by 485 : 346. Futures closed at 1848.5 (parity).
 
2) Heavyweights : SIME +1.83% RM9.44, PBBANK +0.72% RM19.60, GENM -3.13% RM4.33, TENAGA +0.55% RM14.52, CIMB +0.82% RM6.15, IHH +1.35% RM5.99, MISC -0.99% RM8.99, SKPETRO -1.10% RM2.69.
 
3) DBT:  XINGHE 17.5mil @ RM0.0756 (8% discount), AXIATA 13.812mil @ RM7.017, ASIAPLY 11.153mil @ RM0.4576 (12.69% PUC @ 6.42% premium), DSONIC 10mil @ RM1.10, KAWAN 6.85mil @ RM1.80 (3.74% PUC @ 5.76% discount).
 
4) Situational:-
WPRTS +1.23% RM4.12 - Terberg Tractors Malaysia Sdn Bhd, a joint venture between Terberg group and Sime Darby Industrial secured a contract worth RM58mil from Westports Malaysia to supply new terminal tractors. The contract comprises of 104 units of YT220 MKII Terberg terminal tractors as well as service and maintenance over the next seven years. Westports said the contract to purchase 104 terminal tractors came at the right time to meet the demand in port operations, adding that the contract would mark Westports as a greater port. Westport had a 76% of market share in container volume as at end 2014, reflecting that container volume has grown increasingly over the years. The first delivery of terminal tractors was expected to take place end-April till August 2015.
 
5) Century Log/ Top Glove
The Board of Directors of the Company is pleased to announce Logistics Sdn. Bhd., a wholly-owned subsidiary of the Century Log, had on 17 April 2015 accepted the offer to dispose a commercial land measuring 6,070.3 square metres, Mukim Of Bukit Raja, District of Petaling, State of Selangor, to Top Glove Properties Sdn Bhd, a subsidiary of Top Glove Corporation Berhad for a cash consideration of RM20.255m.
 
The disposal consideration of RM20.255 was arrived at based on negotiations between the parties and after taking into consideration the prevailing market value of the land. After deduction of ancillary costs and real property gains tax, Century is expected to realise a gain on disposal of approximately RM9.2 million.
 
 
6) Market: Added uncertainty from increased volatility in global markets could see caution return after the decent rally experienced across the board. However availability of cheap funds should ensure the buoyant mood prevails until the current scenario changes.