FBMKLCI
1705.09pts -2.02pts
(-0.12%) Volume 2.438b Value RM 2.027b
1) The KLCI traded
within a tight 9pts band before closing just 2pts lower inline with the weaker
global markets overnight. Regions were mixed as the SHCOMP +1.45% rebounded
after yesterday's heavy-selling ahead of the Chinese Plenum next week, STI
+0.51% and ASX +0.30% gained marginally while NIKKEI -0.64%, HSI -0.63%
slipped. TECHNOLOGY +1.80% index continued its stride today gaining the most
grounds amongst the sector boosted by INARI +3.81%, JCY +4.02%, UNISEM +2.20%.
PROPERTY +1.02% index also found renewed interest on undemanding valuations as
IOIPG +4.15%, UEMS +5.83%, SPSETIA +1.81% advanced. Market breadth was negative
with losers inching past gainers by 456 : 419. Market futures closed at
1696.5pts (9pts discount)
2) Heavyweights : CIMB -1.61% RM4.89, DIGI -1.22% RM5.63,
PCHEM -1.08% RM 6.41, MAYBANK -0.34% RM8.59, SIME -0.35% RM8.55, PETGAS +2.54%
RM23.34, GENTING +2.04% RM7.47.
3) DBT : SKPRES 11mil @ RM1.45 (1.01% PUC), SCOPE
4.125mil @ RM0.16, SMTRACK 4mil @ RM0.095
4) Situational:-
BRAHIMS +44.11%
RM0.98 - : Singapore's leading provider of gateway services and food solutions,
SATS Ltd has made an offer of RM218mil to Brahim's Holdings Bhd for its 49%
stake in Brahim's Airline Catering Holdings Sdn Bhd (BACH). Brahim received a
conditional binding offer from SATS unit SATS Investments Pte Ltd to acquire
the 490,000 shares in BACH. The amount would be RM110mil upon completion of the
transaction and the remaining RM108mil conditional upon certain financial
targets being achieved.
BARAKAH 0.00% RM0.975 - Barakah Offshore Petroleum Bhd's
wholly-owned subsidiary PBJV Group Sdn Bhd has signed a memorandum of
understanding (MoU) with Hilong Marine Engineering (HK) Ltd for opportunities
related to offshore transportation and installation projects. Barakah said the
projects were for platform heavy lifts and pipelay as well as full engineering,
procurement, construction, installation and commissioning for offshore oil and
gas field development projects. BUY
5) GASM : informed that the Government has announced that
the implementation of Incentive Based
Regulation Framework ( IBR) by Gas Malaysia will take effect from 1 January
2016. The IBR is a form of economic regulation aimed at incentivising Gas
Malaysia for better operational and financial performance, whilst regulating
the natural gas tariff. In support of the liberalisation of natural gas
industry, which is to gradually align current piped gas towards market prices,
the IBR is introduced to promote efficient resources allocation and usage, and
sustainable financial performance. With respect to its implementation, the IBR
shall first be on a Trial Run Period in 2016, following which, the First
Regulatory Period will run for the next three years from 2017 until 2019. Gas Malaysia has made sufficient preparation
to ensure a smooth transition to this new regulatory framework; +ve, the IBR
promotes cost-efficient tariff structure for the customers. It also bodes well for the Company as it is
designed to ensure earnings clarity.
With the IBR implementation, Gas Malaysia will be financially neutral
with respect to gas costs going forward.
6)Market : The FBMKLCI could be poised for further
pull-back ahead of the Budget's announcement, after lower Japanese exports data
raised concerns over the global economy and renewed Ringgit weakness. Trading
range 1680 - 1720 points expected to hold.
