Wednesday, August 5, 2015

Market Roundup | 4 August 2015


FBMKLCI   1723.73     -20.46pts (-1.17%)      Volume 1.335b   Value RM 1.528b

 

1) The KLCI erased yesterday's gain after bluechips AXIATA -5.968%, MAXIS -8.47%, TENAGA -2.45% dragged the index -1.17% lower; this was inline with the weaker US market overnight following a weak set of economic data. However, regional bourses were positive led by SHCOMP after Govt's efforts to crackdown short selling of shares boosted sentiments, HSCEI +0.59%, ASX +0.33% while the HSI closed flat -0.02%. TECHNOLOGY -1.16% index slumped after JCY -3.26% RM0.74, INARI -1.45% RM3.38, UNISEM -2.28% fell. Market breadth was negative as losers beat gainers by 549 : 260. Futures closed at 1711 (12.5pts discount).   

 

2) Heavyweights : AXIATA -5.98% RM6.44, MAXIS -8.47% RM6.59, TENAGA -2.45% RM11.94, CIMB -1.69% RM5.23, UMW -5.97% RM10.08, DIGI -1.63% RM5.41, MISC +5.39% RM8.20, PBBANK +0.52%. 

 

3) DBT: JETSON 2mil @ RM0.425 (18% premium), ACOSTEC 1.724mil @ RM 0.62 (-6.1% discount),  TGOFF 1.2mil @ RM0.40

 

4) Situational:-

POS +0.68% RM4.39 - Pos Malaysia Bhd has awarded a RM40.4m procurement contract to Synergycentric Sdn Bhd to provide optimisation and enhancement of wide area networks (WAN) services. The solution aims to develop an up-to-date network solution and service management services which will fulfil Pos Malaysia's current and future requirements. It said the contract would be completed within 24 months.

 

REDTONE -0.69% RM0.71 - REDtone launches CitiAct app for public to engage with councils: Integrated telecommunications solutions provider REDtone International Bhd launched its first Internet of Things application called CitiAct, a new mobile application for the public to engage with the local councils. With the new app, REDtone said, the public could report cases and track issues sent to the councils to respond effectively.

 

5) ALAM

 

Announce that Workboat International DMCCO, a subsidiary of ALAM  , had entered into Charter Party Agreement with Allianz Middle East Ship Management LLC, a company incorporated in United Arab Emirates for the provision of one unit Safety Standby Rescue Vessel.

The Contract is for the vessel charter of MV Setia Emas, ALAM's vessel for a primary period of three years with an extension option of another two years. The Contract, valued at approximately RM40.7 million (inclusive of extension period).

 

Although positive, this single contract will not stem the negative sentiment over the sector as oil prices hit 6mth lows on supply outlook.

 

 

6) Market - KLCI to resume its range bound trading with a negative bias , trading btw 1740-1680pts levels. Current result season could trigger further downgrades as most sectors are experiencing a slowdown.