Wednesday, December 9, 2015

Market Roundup | 8 December 2015


FBMKLCI   1669.24pts   -2.76pts (-0.17%)    Volume 1.781b   Value RM1.684b
 
1) The KLCI closed marginally lower following a weaker Wall St overnight as oil prices dipped to 7 year lows after OPEC failed to come to an agreement on production cuts. Regions were mostly lower as NIKKEI -1.04%, HSI -1.34%, SHCOMP -1.89%, HSCEI -1.40%, ASX -0.91%, STI -0.81% fell after China Trade data disappointed investors. TECH  +0.92% outperformed the market boosted by UNISEM +5.04%, MPI +3.10%, GTRONIC +0.93% while the INDUSTRIAL -0.55% index lost the most grounds drag by PETGAS -1.88%, SIME -1.28%, GAB -1.13%. Market breadth was negative with losers beating gainers by 423 : 393. Futures closed at 1659.5pts (10pts discount).  

2) Heavyweights PETGAS -1.88% RM22.80, SIME -1.28% RM7.71, SKPETRO -1.40% RM2.10, GENTING -0.41% RM 7.20, PBBANK -0.10% RM18.32, AMBANK -0.43% RM4.60, HLBANK +1.23% RM13.14, GENM +0.46% RM4.33.
 
3) DBT : MAGNUM 7mil @ RM2.55, TROP 5mil @ RM0.95m, SMRT 4.405mil @ RM0.275, SUPERLN 2.984mil @ RM1.9947, GTRONIC 1mil @ RM6.38.
 
4) Situational:-
 INSTACO +8.92% RM0.305 - Instacom Group Bhd's unit, Vivocom Enterprise Sdn Bhd bagged a RM116.4m construction contract from CRCC Malaysia Bhd. The contract is for the provision of construction works for a gated community housing scheme consisting of semi-detached units, villa mansions, apartment block and housing units under the Rumah Selangorku scheme, in Bandar Ulu Klang, Gombak, Selangor, said Instacom. Trading BUY
 
5) EDUSPEC
The company signed a Master Distribution Agreement with CM ASIA LEARNING PTE LTD whereby the Company grants an exclusive distribution rights within the Designated Markets and the right to appoint resellers/distributor to distribute Science Technology Engineering Mathematics (STEM) Education Using Robotics, Stem Computer Science For Schools Program (STEM CS) and Software Development Program (SDP) to CM Asia.
The Company will acquire a (19.35%) of shareholding of the Distributor upon execution of this Agreement.
 CM ASIA LEARNING PTE LTD.  a private limited liability company incorporated in the Republic of Singapore, principally engaged in the business of marketing and distributing software solutions.

+ve as this will enable Eduspec leverage on CM Asia to enhance the development of the market and increase the sales of its Product in the Designated Markets, it would be advantageous to co-ordinate its distribution activities with a distributor in the Designated Market territory who possesses a readily available and sales network in the territory.
 
6) Market – Sliding commodity prices and impending US rate hike will continue to exert downward pressure on the KLSE. Remain range bound with a downward bias.