Friday, April 10, 2015

Market Roundup | 9 April 2015


FBMKLCI   1849.39    -0.92pts (-0.05%)      Volume 1.799b   Value RM1.790b
 
1)  The KLCI closed flat today following the mixed US market overnight after  differing views by the Fed before release of jobs data tonight. In the regional scene, bourses were stronger led by HSI which gained 2.7% after mainland investors flood the market with the new exchange link established, NIKKEI +0.75% while SHCOMP -0.93% and ASX -0.48% fell marginally. In the local scene, PROPERTIES index gained the most grounds today boosted by UEMS +2.96%, ECOWLD +2.87%, SPSETIA +0.87% after jitters over the impact of GST subsided. Market breadth was positive with gainers beating losers by 479 : 374. Futures closed at 1844 (5pts discount).
 
2) Heavyweights : PBBANK -0.72% RM19.12, PPB -3.53% RM15.28, MAYBANK -0.62% RM9.49, TM -1.07% RM7.39, IOICORP +2.42% RM4.65, GENTING +1.08% RM9.30, YTL +1.78% RM1.71, GENM +1.14% RM4.41.
 
3) DBT:  GENTING 27.475mil @ RM9.18 (0.73% PUC), THHEAVY 10mil @ RM0.335, OCK 3mil @ RM0.93, YINSON 1mil @ RM2.95
 
4) Situational:-
CBIP +3.5% RM2.07 - CB Industrial Product Holding Bhd (CBIP) has been awarded an RM49.8m contract from United Plantations Bhd to design a palm oil mill at Ulu Bernam. Subsidiary Modipalm Engineering Sdn Bhd - had received the letter of award to design, supply, fabricate, deliver to site, erect, test, commission and guarantee performance for construction of a 60-tonne fresh fruit bunch per hour palm oil mill at Ulu Bernam.
 
5) KNM
KNM announce that its wholly owned subsidiary, KNM Process Systems Sdn Bhd, had successfully secured new awards for YTD 2015, for about USD56.67 Million (equivalent to about RM204m) for i) Pengerang Integrated Petroleum Complex Project - from Toyo Group, for supply of Columns, Reactors, Drums and Tanks totaling USD33.53 million and from Tecnicas Reunidas Group for supply of Reactors, Columns and Pressure Vessels totaling USD15.17 million, ii) Turkmengas Petrochemical Complex Project from Toyo Engineering Corporation Japan, for USD7.97 million for supply of Towers. The contract period for the Projects runs between 12 months to 18 months.
+ve as are able to continue to replenish order book with emphasis on EPC/RAPID contracts. The company is also looking to build recurring income in the Renewable Energy space and we expect further news flow on this front in the weeks to come. Trading at a fair valuation of 9x current year, sizeable contract wins could be a catalyst help push it out of the current trading range of btw 60c-80c. Incidentally its Rights plus warrant acceptance closes next Monday 13th April. Accumulate at lower end of its trading range.
 
6) Market: Momentum in mid caps to continue to grow in the weeks ahead buoyed by the liquidity flushed environment.