Tuesday, September 22, 2015

Market Roundup | 21 September 2015


FBMKLCI   1639.47pts      -29.98pts (-1.80%)      Volume 1.599b   Value RM 1.868b
 
1) The KLCI slipped -1.80% today following the weaker US market before the weekend as investors digested Fed's dovish strategy to maintain rates. Region was mixed today with the SHCOMP +1.89% bucking the trend while the HSI -0.75%, HSCEI -1.29%, ASX -2.02% fell ahead of the Sept Flash PMI data that would be released this Wednesday. Broad market faced profit taking as the FINANCE  -2.08% index lost the most grounds weighed by MAYBANK -3.33%, CIMB -3.43%, AMBANK -5.25%, PBBANK -0.64%. Market breadth was negative with losers beating gainers by 526 : 274. Futures closed at 1630pts (9pts discount)
 
 2) Heavyweights : MAYBANK -3.33% RM8.41, CIMB -3.43% RM4.78, GENM -7.55% RM4.04, IOICORP -5.44% RM3.82, GENTING -4.00% RM7.43, AMBANK -5.25% RM4.69, MISC -3.93% RM8.31, DIGI -2.08% RM5.64.
 
3) DBT:  KINSTEL 3mil @ RM 0.135, SUNSURIA 2.842mil @ RM0.80, HWANG 1.075mil @ RM1.80.
 
4) Situational:-
LAFMSIA -1.93% RM9.11 - Lafarge Malaysia Bhd is buying the entire stake in Holcim (Malaysia) Sdn Bhd (HMSB) from PT Holcim Indonesia Tbk for RM330 million following the recent merger of their respective ultimate holding companies. As a result, the proposed acquisition is proposed to facilitate the consolidation of the businesses of manufacturing and sale of cement, ready-mixed concrete and other related building materials of LafargeHolcim in Malaysia under LMB. LMB said the proposed acquisition will increase the group's cement plants annual installed production capacity by 9.2% to 14.14 million tonnes from 12.95 million tonnes. LMB said the the proposed acquisition is expected to deliver synergies in terms of operations, cost and capital expenditure.
 
WCT  +0.74% RM1.36 - WCT Holdings Bhd has been awarded an infrastructure works contract at Kwasa Damansara worth RM127.39 million. WCT Bhd, accepted a letter of award from Kwasa Land Sdn Bhd for common infrastructure works at Kwasa Damansara Township Development in Sungai Buloh. The job scope consists of site clearance and site preparation, including earthworks, roadworks, road furniture, drainage works, sewerage reticulation and sewerage treatment plant, water reticulation, park and ride facility, electrical infrastructure works, and soft and hard landscape works. The works are to be completed by Oct 8, 2017.
 
5) ENRA
Entered into a Heads of Agreement with AWT International (Asia) S/B with the intention of collaborating to form a Special Purpose Vehicle , to be the project management vehicle on well, platform and field abandonment/decommissioning projects with any direct or indirect subsidiaries of PETRONAS or Malaysian oil and gas operators and to provide project management, technical engineering services and other technical support and all assets, machine, equipment and related services for the Malaysian Opportunities and/or any operations outside Malaysia mutually agreed by the Parties (hereinunder defined) whether via the SPV or any other entity in which the Parties have equity interests. The Parties also propose to subsequently enter into a Shareholders Agreement in relation to the Proposed Collaboration, whereby the SPV's ratio of equity breakdown between AWT and ENRA shall be 49%:51% respectively.
 
AWT has the engineering expertise and know-how, capabilities and services, and business opportunities, associated with the development of oil, gas and alternative energy assets. AWT proposes to provide at competitive international market rates project management and technical engineering services and other technical support set out in the HOA to secure, undertake and execute the Malaysian Opportunities.
 
Market - Expect cont pull back in the KLCI after its recent sharp run as uncertainties prevail over the US int rate hikes and also fear of slowing global growth. Immediate support 1600pts lvls.