FBMKLCI
1689.25pts +26.74pts
(+1.61%) Volume 2.692b Value RM 3.213b
1) The KLCI extended its rally to a 3rd consecutive day
despite the mixed US market overnight as the Ringgit staged a 4% rebound
following stronger oil prices and better trade data. Region bourses were mostly
higher today as HSI +3.13% led in gains boosted by energy and financial names,
STI gained +2.17%, ASX +0.59%, NIKKEI gained +0.75% as BOJ maintained interest
rates. Broad market saw risk-on trades today as the CONSTRUCTION +4.38% index leading in gains amongst the
sectors, GAMUDA +7.11%, IJM +7.87%, SENDAI +5.03%, JAKS +6.25%, MUHIBBAH +2.88%
ahead of a more expansionary Budget. Market breadth was largely positive today
amid suspected foreign inflows as gainers beat losers b 699 : 223. Market
futures closed at 1683pts (6pts discount).
2) Heavyweights :
SIME +7.31% RM8.80, CIMB +6.75% RM4.90, SKPETRO +8.94% RM2.07, PCHEM +2.90%
RM6.38, GENM +4.24% RM4.42, GENTING +2.40% RM7.68, IOICORP +1.89% RM4.30, MAXIS
+1.48% RM6.83.
3) DBT : IDEAL 12.082mil @ RM0.40 (6.50% PUC @ 10%
discount), OWG 10mil @ RM2.23 (5.40% PUC), CENTURY 5.346mil @ RM0.82.
4) Situational:-
JOHAN +3.33% RM0.155 - Johan Holdings Bhd's wholly-owned
subsidiary Abacus Pacific N.V. is selling its 66.08% equity interest in Jacks
International Ltd to Creative Elite Holdings Ltd for S$15.86 million (RM48.7
million). Johan said Abacus Pacific signed a sale and purchase agreement with
Creative Elite for the disposal of its 19.83 million ordinary shares at a price
of S$0.80 per sale share. Creative Elite also announced to SGX-ST that it
intends to make a mandatory cash offer to acquire all the remaining ordinary
shares in Jacks International at an offer price of S$0.80 per share, in
accordance with Singapore stock exchange regulations. Upon completion of the
proposed disposal, Jacks International will cease to be a subsidiary of the
company.
5) KNM
KNM announced that its wholly-owned subsidiary, KNM
Process Systems Sdn Bhd accepted a Letter of Award from Drenl Ltd, a company registered in United
Kingdom, to undertake the Engineering, Procurement, Construction and Commissioning
of a Waste-to-Energy Facility at Beddington Lane, Croydon, United Kingdom
amounting to £88 milliom.
KNMPS has also been awarded the Operation and Maintenance
of the said Waste-to- Energy Facility subject to the finalisation of the terms
and conditions.
The EPCC Contract duration is approximately 27 months
commencing after receiving notice to proceed from Drenl Ltd.
The EPCC Contract is expected to contribute positively to
KNM Group's earnings for the financial years ending 31 December 2016, 2017 and
2018.
This further reaffirms its capabilities in the renewable
energy segment and less dependency on the O&G sector. A major rerating
however still hinges on its legacy Peterborough Renewable energy plant which is
suppose to obtain financial close before year end however investors remain
skeptical given the many disappointments in the past.
6) Market - the risk on trade driven by the recent series
of events, delay in US rates, better trade data, oil and CPO rally plus the
Budget at month end could see momentum sustain in the medium term for the KLCI
to attempt the next resistance levels of 1728pts.