FBMKLCI
1639.63pts +36.03pts
(+2.25%) Volume 2.199b Value RM 2.231b
1) The KLCI was stronger as it surged +2.25% after the
local government announced stimulus measures to boost the market. Region
bourses were mostly lower as NIKKEI -1.63%, SHCOMP -2.67%, STI -0.34%, while
the HSI +0.27% and ASX +0.50%. Local stocks rally led by CI heavyweights namely
TENAGA +6.59%, SIME +7.39%, DIGI +4.88% while the CONSTRUCTION index +2.26%
followed closely behind boosted by GAMUDA +2.93%, IJM +2.58%, WCT +2.47%.
Market breadth was positive as gainers edge losers by 470 : 342. Futures closed
at 1631pts (8pts discount).
2) Heavyweights :
TENAGA +6.59% RM11.96, SIME +7.39% RM7.70, DIGI +4.88% RM5.58, PBBANK +1.35%
RM18.00, AXIATA +2.71% RM6.06, CIMB +2.51% RM4.90, GENM +5.01% RM4.40, KLK
+5.26% RM22.00, MAYBANK +1.18% RM8.51.
3) DBT: CAP
31.5mil @ RM0.135 (2.71% PUC), POHKONG 14mil @ RM0.30, PPG 6.75mil @ RM0.35.
4) Situational:-
SUNCON 0.00% RM1.12 - Share price remain tepid albeit
bagging a construction project worth RM1.6b from Putrajaya Holdings Sdn Bhd
(PHSB) for works in Precinct 1, Putrajaya. SunCon said its subsidiary Sunway
Construction Sdn Bhd had received the letter of award from Putrajaya Bina Sdn Bhd, which is a wholly-owned
subsidiary of PHSB. The award would involve the proposed design, construction
and completion of government office buildings consisting of office towers,
podium parking and external works for Parcel F, Precinct 1, Pusat Pentadbiran
Kerajaan Persekutuan, Putrajaya.
5) ECONOMICS
The Prime minister announced some new measures today at a
news conference, meant to improve sentiment, He said the equity investment
firm, ValueCap, would be given funds to invest in undervalued Malaysian
companies. As such, the government will reactivate ValueCap with funds of 20
billion ringgit.
The PM also announced that the factory sector would be
exempted from import duties until the economy recovers from a slowdown, but did
not specify which specific sectors would benefit.
Additionally Khazanah Nasional Bhd has announced
additional domestic investments of RM6.77bil in support of the Government's
newly unveiled initiatives to strengthen Malaysia's economy.
Short term positive however notably the RM hardly reacted
to these measures and more is likely needed in view of the persistent low
commodity prices which the Msian economy is highly reliant on.
6) Market - Any
further push up on the KLCI after today's feel good announcement will meet
selling resistance especially with the many uncertainties that remain
outstanding. Trim into strength