FBMKLCI
1563.94 +31.80pts
(+2.08%) Volume 2.784b Value RM 2.763b
1) The KLCI staged a sharp rebound closing +2.08% higher
boosted by heavyweights AXIATA +5.51%, PCHEM +7.80%, DIGI +5.05% shrugging the
drastic sell down in the US overnight. Region were mixed as the SHCOMP -7.63%
led in losses despite PBOC's mini intervention to inject more funds into the
market, HSCEI -0.92%, NIKKEI -3.96% fell while HSI +0.72%, ASX +2.72%, STI
+1.50% closed in positive territory. TRADING/SERVICES +1.77% index gained the most ground amongst
the sectors as AXIATA +5.51%, IHH +3.26%, TM +4.68%, TENAGA +1.73% advanced,
followed by INDUSTRIAL PROD +1.69% index
which was lifted by PCHEM +7.80%, PETGAS +0.48%, EVERGRN +5.02%. Market breadth
negative as gainers beat losers by 487 : 381. Futures was 1556.5pts (7pts
discount)
2) Heavyweights :
AXIATA +5.51% RM6.12, PCHEM +7.80% RM5.80, DIGI +5.05% RM5.20, PBBANK +1.62%
RM17.56, TM +4.68% RM6.48, TENAGA +1.73% RM10.54, CIMB +2.16% RM4.72, IHH
+3.26% RM5.70
3) DBT: SANICHI 32mil @ RM0.06 (2.79% PUC), TRC 7mil @
RM0.30 (1.45% PUC), PMHLDG 5.33mil @ RM0.225
4) Situational:-
TM +4.68% RM6.48 - Telekom Malaysia Bhd (TM) plans to
further extend the high-speed broadband
(HSBB) service coverage in Kedah including to Alor Setar under the HSBB 2
project, its Kedah and Perlis general manager said. Currently, the UniFi
service in the state is available in Kulim, Taman Ria housing estate and Bakar
Arang industrial area both in Sungai Petani, as well as Langkawi. TM has over
11,600 UniFi customers in Kedah, and the company plans to broaden its coverage
including to Alor Setar through the HSBB 2 project which will be implemented
soon.
SIME +1.4% RM7.12 - Sime Darby today clarified that the
Company is currently exploring various options which include, among others,
capital management and fund raising exercises, and/or other initiatives to
strengthen its balance sheet.
5) Coastal
1H June Tover
+10.2% RM515m Net +3.3% RM100.7m EPS 19sen
9% below
cons(f) RM220m
Coastal Contracts' 1H15 net profit rose 3.4% to RM100.7 million, on 10.3% higher
revenue of RM515.0 million. The growth was attributed to increased delivery of
OSVs in the first quarter of 2015, as well as enhanced product mix comprising
higher-value OSVs.
It is on track to
complete the construction of its first jack-up gas compression service unit
(JUGCSU) in the third quarter of 2015. The Group had secured a USD370 million
12-year charter contract of the JUGCSU,
to be used by Mexico's national
oil company Petróleos Mexicanos. It targets to see first contributions from the
12-year charter in the first half of 2016.
Current orderbook stands at a total of RM3.4 billion. Of
the total orderbook, OSV and other vessels, amounting to RM1.1 billion, will be
due for delivery until 2017. The O&G
division made up the remaining orders of
RM2.3 billion. Px has retraced
almost 39% YTD and is trading at fwd PE of 4.8x which could provide some
support at these levels. Hold
6) Market - Volatility in the major market will continue
to have significant influence on the KLCI. Today's strong close today linked to
major closing of a main local fund could be extended if China's rate cut has
the desired efect on equity markets.