FBMKLCI
1725.56 +1.83pts (+0.11%) Volume 1.223b Value RM 1.394b
1) The KLCI traded in positive territory thruout the day
before closing 2pts (0.11%) above shrugging off the weaker US market overnight.
Regional bourses were mixed today as the SHCOMP -1.65% led in losses after
continued efforts by Chinese government to diminish the volatility of the
market drove investors away, ASX closed -0.42%, while NIKKEI +0.46%, HSI +0.44%
gained. CONSTRUCTION +0.60% index gained the most grounds amongst the sectors
as GAMUDA +1.28%, IJM +0.29%, MUHIBBAH +2.70% advanced. Market breadth was
neutral with even gainers and losers, 383 : 388. Futures closed at 1715pts
(10pts discount).
2) Heavyweights : MAXIS +3.03% RM6.79, CIMB +1.14%
RM5.29, MISC +1.46% RM8.32, IOICORP +0.94% RM4.28, IHH +0.82% RM6.11, MAYBANK
+0.21% RM9.19, TENAGA -1.34% RM11.78, GENTING -1.19% RM8.29.
3) DBT: IDMENSN
7.5mil @ RM0.125 (1.51% PUC @ 13.8% discount), TEXCHEM 6.932mil @ RM1.6540
(5.586% PUC @ 5.3% premium).
4) Situational:-
HIBISCS +0.57% RM0.87 - Hibiscus Petroleum Bhd's
wholly-owned unit, Gulf Hibiscus Ltd, has been awarded the South East Ras El
Ush concession (Block 2) in Egypt by the Ganoub El-Wadi Petroleum Holding Co,
an entity of Egypt's Ministry of Petroleum. Hibiscus Petroleum said the
acceptance of the concession provided the company an opportunity to explore and
develop in an area which was one of the oldest producing basins in the world.
The basin had over 1,900 drilled wells with a total of 123 producing fields and
an annual production of about 180 million barrels of oil.
5) Fututech : announced that in reference to the heads of
agreement ("HOA") entered into with the Vendors to explore and
negotiate on a proposed acquisition by Fututech of the entire issued and
paid-up share capital of Kerjaya Prospek (M) Sdn Bhd and Permatang Bakti Sdn
Bhd for a total indicative purchase consideration of RM380m, the parties have
mutually agreed to an extension of time of a period of 2 months from 6 August
2015 (i.e. until 6 October 2015) to enter into the Definitive Agreements for
the Proposed Injection; Neutral on announcement - the proposed acquisition will
garner a RM2b order book and a profit guarantee of close to RM150mil for 3
years. The deal is said to be financed by a mixture of shares and cash. Group
is aiming for its property development division to be its top earnings
contributor moving forward and is expected to start seeing contributions from
2015 onwards. This is positive as property development is more lucrative,
commanding higher margins and will be complemented by Group's stable
manufacturing and construction divisions. The acquisition with a healthy order
book is a material catalyst going forward.
6) Market : Market
is expected to be range-bound within 1685-1745 points in the near term while
awaiting fresh catalysts. The regional markets could be in for a volatile ride
amid growing concerns over the slowdown in China's economy and downbeat
sentiment coming from Wall Street. Domestically, attention will again revert to
quarterly corporate results, more so this time as it is the first full quarter
post-GST implementation.