FBMKLCI
1621.62 +11.69pts
(+0.73%) Volume 1.863b Value RM 2.210b
1) The KLCI broke its 5 day losing streak today after the
US market rebounded in intraday as investors digest the Chinese's move to
devalue the Yuan for a 2nd day. Region bourses were stronger led by SHCOMP +1.76% as PBOC eased fear on Yuan
devaluation, STI gained +1.30%, NIKKEI +0.99%, HSI +0.43%, ASX +0.11%. Most of
the sector gained with the TECHNOLOGY +4.42% index leading in gains boosted by
INARI +8.65%, VITROX +9.89%, JCY +4.72% followed by CONSTRUCTION +1.68% index
as IJM +1.61%, GAMUDA +0.69%, WCT +3.33% advanced. Market breadth was positive
as gainers outpaced losers by 714 : 217. Futures closed at 1618.5 (3pts
discount).
2) Heavyweights : MAYBANK +2.25% RM8.60, CIMB +2.83%
RM5.08, GENM +3.95% RM3.94, PBBANK +0.54% RM18.30, AMBANK +2.77% RM5.19,
SKPETRO +2.95% RM2.09, TENAGA +0.55% RM10.86, AXIATA -1.00% RM5.91.
3) DBT: NEXGRAM
14mil @ RM0.085, GDEX 5.5mil @ RM1.15, TITIJYA 2mil @ RM1.70.
4) Situational:-
KAREX +6.79% RM3.30 - Karex Bhd is proposing to buy the
entire equity interest in another condom maker Medical-Latex (Dua) Sdn Bhd from
Beiersdorf AG for RM13.0m. The world's largest maker of condoms said the
purchase would allow it to build on MLD's reputation as one of the leading
premium quality condom manufacturers. It would allow Karex to acquire MLD's own
brand manufacturing product, under the Enjoyable Safe Pleasure (ESP) brand.
5) UZMA
Uzma entered into a MOU with East Coast Economic Region
Development Council to develop the "Uzma Group Integrated Offshore Supply
Base at
Teluk Kalong Industrial Estate, Kemaman, Terengganu; a 20,000 square
meter rented/leased land.
Uzma's potential investment in the said PROJECT is
RM471.48m over a period of 15yrs.
Uzma intends to invest approximately RM94m over a period
of the first 5 years in the said PROJECT and to apply their technology,
expertise, equipment and facilities, and/or other resources for the successful
implementation and development of the said PROJECT.
+ve for a longer
term recurring income model however further details will be required to asses
the fundamental impact for such a substantial investment over the next 15
years.
6) Market - Barring any further unexpected negative
surprises, we expect the current technical rebound to remain intact with an
upside resistance of 1680pts.