KUALA LUMPUR: With the US and Japan economies expected to do well, M&A Securities says it is forecasting the FBMKLCI will hit 1,838 points and is advising investors to stay in the market.
Its recommendation is investment in strong blue chips counters with attractive valuations, especially the ETP-related sectors.
“We have an Overweight call on Finance, Construction and Oil and Gas sectors,” it said.
Meanwhile, the market closed Monday with the FBMKLCI marginally higher by 1.02 points to end at 1,786.67. This was in line with firmer Asian market but M&A said the market was bracing with the weaker China’s economy, which slowed for second quarter as growth in factory output and fixed asset investment weakened.
There were 372 gainers, 356 losers and 304 counters unchanged. Volume traded for the day declined further to 1.12 billion from 1.16 billion valued at RM1.61 billion.
The gainers on Bursa were TAHPS Group which rose 39 sen to RM6.55, Puncak Niaga Holdings up 34 sen to RM2.65, My EG and Allianz which both grew 26 sen to RM2.21 and RM9.48, and Kumpulan Perangs which added 20 sen to RM1.89.
The losers were Nestle, BAT, NPC Resources, KLK and Gabungan AQRS.
M&A’s pick of the notable news of the day includes Scomi Energy securing RM159m Tenaga contract transport coal for the latter's electricity-generation operations. The two-year contract starts from Sept 1 this year, and comes with an optional one-year extension.
Also in the spotlight is RHB Bank Bhd’s offer of RM20mil term loan to the Federation of Chinese Associations Malaysia (Huazong) to partly finance the construction cost of the association's new headquarters. The loan will be spread over a 10-year period. The new building with an estimated cost of RM70mil will be built on a 3.5ha land located on a highly accessible site between Sungai Besi/Besraya and Plus highways and is adjacent to University Putra Malaysia.
Meanwhile’s Zecon’s major shareholders have decided to privatise and delist the firm via a selective capital reduction and repayment exercise. According to Zecon, its minority shareholders will receive a total cash payment of RM35.78mil or 80 sen per share under the selective capital reduction and repayment. The capital reduction involves the cancellation of 44.72 milion shares representing a 37.5% stake in Zecon held by minority shareholders.
Last but not least, Protasco is reported to have bagged RM23mil Sarawak contract from JKRProtasco Bhd has bagged a RM23 million contract from the Public Works Department (JKR) to maintain roads in Sarawak. In a filing with Bursa Malaysia, the construction firm said its subsidiary HCM Engineering Sdn Bhd has been awarded a periodic maintenance work contract for federal roads in Zone 2A.
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