FBMKLCI
1749.17 +7.80pts (+0.45%) Volume 1.478b Value RM1.986b
1) The KLCI broke its 3 day losing streak to close +0.45%
higher despite the flattish US market overnight. Regional bourses were mixed
before the widely anticipated ECB meeting later tonight as the ASX -0.93% led
in losses, NIKKEI fell -0.34%, SHCOMP closed flat -0.01% while the HSI +0.69%
outperformed after HSBC PMI data beat consensus. In the local scene, INDUSTRIAL
index +1.5% gained the most, boosted by gains amongst heavyweights, namely SIME
+3.35%, MISC+0.71%, BAT +0.92%, PETGAS +0.36%. Market breadth was positive with
gainers beating losers by 444 : 358. Futures closed at 1743.5 (6.5pts
discount).
2) Heavyweights : SIME +3.35% RM8.63, DIGI +2.66% RM5.79,
KLK +4.28% RM22.38, IOICORP +1.48% RM4.10, YTL +2.58% RM1.59, PCHEM1.11%
RM6.34, MAXIS0.73% RM6.87, CIMB -2.56% RM5.32.
3) DBT: BJLAND
19.3mil @ RM0.71, BORNOIL 6mil @ RM0.70 (1.58% PUC), CYPARK 4.50mil @ RM1.80
(2.23% PUC), BARAKAH 4mil @ RM0.87
4) Situational:-
COCOLND +20.59% RM2.46 - Share price gained after another
takeover offer from Hong Kong-based First Pacific Co Ltd offered to acquire the
COCOLAND's business for RM463.3m. Cocoaland said First Pacific has offered to
acquire all the business and undertaking for a cash price equivalent to RM2.70
per ordinary share of 50sen each in the company.
5) SILK HLDGS : announced that its subsidiary, Jasa Merin
(Malaysia) Sdn Bhd has been awarded a contract by Vestigo Petroleum SdnBhd, for
the provision of Marine Vessel Services to Support Vestigo's Drilling Program
& Production for Tembikai Field Development. The contract, commencing from
the third week of June 2015, is for a primary term of two years & is
estimated to have a value of approximately RM21.17m for the primary term, is
expected to contribute positively to the earnings of the Group for the financial
year ending July 2015 and beyond. There are no significant risks involved in
JMSB fulfilling its obligations under the contract ; +ve as it builds up it's
offshore supply vessel segment. Presently operates a fleet of 19 vessels
comprising 2 Straight Supply Vessels ("SSV") and 17 Anchor Handling
Tug Supply Vessels ("AHTS"). All of its OSVs are Malaysia-flagged and
are relatively young, averaging 5 years in age. The OSV business has been the
sole earnings contributor to the group as the Kajang Ring Road (KRR) has been
on accounting loss due to existing high financing and amortization costs.
6) Market: We expect market to remain choppy as technical
indicators still suggest further weakness, although some bargain hunting is
beginning to surface. Short term trading range to be between 1730- 1770 points.