FBMKLCI
1686.51pts -10.44pts
(-0.62%) Volume 2.148b Value RM 2.053b
1) The KLCI fell inline with the global markets as
investors retreat to safety amid rate uncertainty as the Fed concludes its 2
day meeting tonight. Region was lower as the SHCOMP -1.72% led in losses
weighed by energy stocks, HIS -0.80, HSCEI -1.46%, STI -0.39%, ASX -0.20% all
slipped on profit taking; NIKKEI bucked the trend closing +0.67% higher.
BANKING -0.72% lost the most grounds today
weighed by heavyweights PBBANK -1.19%, MAYBANK -0.93%, HLFG -2.19%, CIMB
-0.61%. Market breadth was however positive with gainers beating losers by 449
: 383. Market futures closed at 1690 (3pts discount).
2) Heavyweights : PBBANK -1.19% RM18.18, AXIATA -1.91%
RM6.15, MAYBANK -0.93% RM8.47, BAT -2.33% RM62.70, CIMB -0.61% RM4.84, MAXIS
-0.74% RM6.65, PCHEM -0.62% RM6.37, SKPETRO -1.40% RM2.11.
3) DBT : BIOHLDG 10mil @ RM0.29 (2.15% PUC), HWANG 5.9mil
@ RM1.80 (2.31% PUC), INIX 5mil @ RM0.135
4) Situational:-
KNM -0.94% RM0.525 - KNM Group Bhd's wholly-owned
subsidiary, KNM Process Systems Sdn Bhd has signed a contract agreement with
Cypark Sdn Bhd worth RM268.4m. The deal was inked via SHK Consortium, the
consortium formed between KNM Process Systems and Japan's Hitachi Zosen
Corporation. KNM Group said the contract entailed engineering, procurement,
construction and commissioning (EPCC) works in respect of the solid waste
modular advanced recovery and treatment systems waste management solutions at
Ladang Tanah Merah, Negeri Sembilan.
5) UMWOG :
announced that UMW Offshore Drilling Sdn Bhd, a wholly-owned subsidiary
of UMW Malaysian Ventures Sdn Bhd, which in turn is a wholly-owned subsidiary
of UMW-OG, has received a Letter of Award from PETRONAS Carigali Sdn Bhd
("PCSB") for a contract for the provision of a Jack-Up Drilling Rig
for PCSB. The Contract is for the provision of Drilling Rig Services for PCSB's
Drilling Programme, whereby UMW-OG Group will assign its UMW NAGA 7 for this
contract. The Contract is for 7 firm wells with Extension Option of one plus one well (estimated duration of minimum
1 month for each well). The commencement of the Contract is 15 October 2015.
UMW NAGA 7 is a premium independent-leg cantilever jack-up rig that has a drilling
depth capability of 30,000 feet and has a rated operating water depth of 375
feet; +ve, although the value of the contract was not revealed, the provision
of the abovementioned drilling rig services is expected to contribute
positively to the earnings and net assets of UMW-OG Group for the financial
years ending 31 December 2015 and 31 December 2016. However, the outlook for
UMWOG remains challenging in the near term as a slowdown in the O&G sector
resulted in a continued downward pressure on dayrates, which is exacerbated by
an influx of uncontracted newbuilds. Furthermore, utilisation is expected to
contract further as more rigs are completing their contracts this year.
6) Market : The KLCI could head towards a downward-bias
trajectory in the short-term, as investors are getting more cautious post the
largely neutral Budget 2016 and ahead of the FOMC meeting. Immediate support at
1685 points.
