FBMKLCI
1736.19 +12.06pts (+0.70%) Volume 1.656b Value RM1.510b
1) The KLCI was flat in the morning before buying
interest picked up in afternoon session to close 12pts higher, boosted by late
buying in heavyweights PCHEM +2.80%, MISC +2.28%, GENTING +2.18%. Regional
markets saw gains overall with NIKKEI +0.93%, SHCOMP +0.66%, HSI +0.52% as
China saw a 8.3% YoY rise in foreign direct investment of $68.4bn. TECHNOLOGY
+1.83% index surged for a 2nd day running boosted by JCY +3.36%, MPI +2.80%, GHLSYS
+4.46% mirroring another record high for the NASDAQ. Market breadth was
positive with gainers beating losers by 555 : 261. Futures closed at 1732pts
(4pts discount).
2) Heavyweights : PCHEM +2.80% RM6.60, GENTING +2.18%
RM8.42, CIMB +1.27% RM5.57, MISC +2.28% RM8.08, GENM +1.88% RM4.33, SIME +0.81%
RM8.68, ASTRO +2.71% RM3.03, PPB +1.73% RM15.30.
3) DBT: TAKASO 19.956mil @ RM0.3811 (9.77% PUC @ 18.9%
discount), BJLAND 4.307mil @ RM0.68 (4.23% discount), SGB 2.85mil @ RM0.70
(2.73% PUC @ 3.70% premium)
4) Situational:-
KKB +1.11% RM1.83 - KKB Engineering Bhd has received
contracts totalling RM14.6m to supply steel structures and liquefied petroleum
gas cylinders. It said it had accepted a purchase order from JGC (Malaysia) Sdn
Bhd for the supply of fabricated steel structures for Tank 7 new jetty-PAF
project for Petronas' LNG Train 9 Project. It also received a purchase order
from Petron Malaysia Refining & Marketing Bhd for the supply of 14.0 kg gas
cylinders.
MULPHA +2.90% RM0.355 - Mulpha International Bhd's
indirectly-owned subsidiary, Mulpha Strategic Ltd, has disposed of its entire
stake of 19.9% in PBD Developments Ltd for RM55.1m to Oasis Star Ltd, a
wholly-owned unit of Tian An China Investments Co Ltd. MSL is wholly-owned
subsidiary of Mulpha Group Services Sdn Bhd. Mulpha Group said the payment was
received in cash in HK dollars, amounting to HKD112.1m based on the exchange
rate of HKD1.0:RM0.49.
5) IJM :IJMII (Mauritius) Limited ("IJMIIM"), a
indirect wholly-owned subsidiary, had on 20 July 2015 entered into a
conditional Share Purchase Agreement with MAIF Investments India
("MAIF") and Swarna Tollway Private Limited ("STPL") to
dispose of 175,000,000 equity shares of INR10 each and 14,000,000 cumulative
compulsorily convertible preference shares of INR10 each, representing 70% of
the issued and paid-up share capital of STPL to MAIF for a total consideration
of INR6,853.1m (eqivalent to about RM407.8m). The expected gain from the
Disposal is approx RM92.62m. CIDB Inventures Sdn Bhd ("CIDBI"), a
95%-owned subsidiary of the Company and a 30% shareholder of STPL, will also
dispose the balance 30% of STPL for a total consideration of INR3,176.8m (c
RM189m ). The disposal of CIDBI's 30% stake in STPL is subject to obtaining the
necessary approvals from the authorities and within a period of forty two (42)
months from the completion of the Disposal.
STPL is a private limited company incorporated in India and the
Concessionaire for the improvement and upgrading of existing 2-lane highways
from km 52.8 to km 163.6 of Tada-Nellore section and km 217 to km 252 of
Nandigama-Ibrahimpatnam section of the National Highways No. 5 and No. 9
respectively in Andhra Pradesh, India on a Build-Operate-Transfer basis; +ve,
as disposal proceeds will come in handy. We are of the view that IJM is in the
midst of entering a new phase of growth as most of its major earnings drivers
are in "expansion mode". Firstly, the group has secured RM5.9b new
order-book in FY15, which boosted its total outstanding order-book to RM7.0b.
This will provide five years of earnings visibility. The completion of IJM
Land's privatisation exercise should also boost its net profit in FY16.
6) Market - The local market is expected to continue its
sideways trading mode amid the prolonged domestic issues on 1MDB, as well as
the on-going corporate earnings, which may provide some fresh clues for the
market. With that, we reckon that the local bourse could be on course to
consolidate within 1690-1740 points range this week.