FBMKLCI
1615.01pts +1.84pts
(+0.11%) Volume 1.661b Value RM 1.949b
1) The KLCI broke its 4 day losing streak recovering its
early session losses in the 2nd half to close marginally higher after Fed's
Chair suggested that it is on-course to raise rates this year dimming concerns
over slowing of the global economy. Regional bourses were mixed with SHCOMP
-1.62%, ASX -0.58% whilst NIKKEI +1.76 on speculation that BOJ will be stepping
up its easing policy in October policy meeting. CONSUMER PRODUCTS +0.69% led in
gains boosted by PPB +2.37%, QL +2.99%, BAT +0.68%, BONIA +9.03%. Market
breadth was marginally negative with losers edging gainers 381 : 355. Market
futures closed at 1612.5 (2.5pts discount).
2) Heavyweights : TM +1.99% RM6.66, PBBANK -0.45%
RM17.60, PPB +2.37% RM15.56, CIMB -0.64% RM4.69, TENAGA +0.33% RM12.08, PCHEM
+0.66% RM6.06, YTL +1.27% RM1.59, SIME -0.40% RM7.44.
3) DBT: ECOWLD
55.22mil @ RM1.40 (2.34% PUC @ 4.11% discount), BJLAND 12.607mil @ RM0.685,
HWANG 4.0mil @ RM1.80 (10.45% discount).
4) Situational:-
PESTECH +1.56% RM5.86 - has received a letter of
acceptance from Tenaga Nasional Bhd to construct a 500/275kV Yong Peng East,
Johor backbone main substation, at a cost of RM134.4 million and will enable
the national grid 500kV backbone connectivity from Yong Peng East to Lenggeng,
Negri Sembilan and futher access to Ayer Tawar in Perak. When ready, the
project will form the transmission line infrastructure for the Peninsular power
grid system," said the group, adding that the construction is expected to
be completed in 1,085 days.
5) PLANTATIONS
The Malaysian Palm Oil Board will implement a RM100
million palm oil replanting incentive scheme beginning Oct1, 2015 till Dec
2015. The scheme targetted the replanting of 83,000 hectares of unproductive
and old palms.
The incentive allocation of RM1,500 per hectare for an
approved area of 33,000 hectares in the first phase. Meanwhile, an incentive of
RM1,000 per hectare would be allocated for an approved area of 50,000 hectares
under phase two.
It is expected that the implementation of the replanting
incentive scheme would contribute to a reduction of crude palm oil production
by 250,000 tonnes and subsequently to a decline in stocks, as well as, help
stabilise palm oil prices.
Incidentally palm oil prices are +23% from 6-yr low on
Aug. 26 closing above 2,240 ringgit on the back of the continued weakening RM.
6) Market : Rotational play with negative bias on the
KLCI as concerns continue over the 1MDB saga and uncertainty over the timing of
the US rate hike.
