Daily Commentaries 20th Sep 06
OSK Research
Technical View
Tenaga continued its strong performance following news that it has scrapped plans to issue new shares, reducing the risk of a share overhang. However, profit taking on institutional stocks saw the KLCI shedding 2.73pts yesterday. Several retail stocks tumbled following the news that the US’ SEC will investigate Aeneas Capital Management. Tan Sri Azman Mokhtar’s second attempt to take AmCorp Group private at RM1.40/shr may spur trading interest in the stock today. Other local news are Hiap Teck’s excellent 4Q06 results, the lower vehicle sales in August (-6.4%), representing a consecutive seven-month of decline as higher interest rates and the lower value of used cars deterred purchases. Also, the award of RM13m contract by Petronas Carigali to Tanjong Offshore, Lion Forest capital distribution raised to RM2/shr from RM1.20/shr and Oilcorp’s RM15m acquisition of a deepsea fishing company. Meanwhile, CIMB has issued 20m and 30m of Sime Darby and Gamuda call warrants, respectively. Despite the oil price dipping below US$62pb, market may be cautious ahead of the FOMC meeting tonight. Nevertheless, consensus has anticipated the Fed to keep interest rate on hold at 5.25%. In addition, the military coup in Thailand and weaker close on the Dow may dampen today’s sentiment. On the local front, Aug CPI number will be released today, expected at 3.6% (Jul: 4.1%).
Technical View
Tenaga continued its strong performance following news that it has scrapped plans to issue new shares, reducing the risk of a share overhang. However, profit taking on institutional stocks saw the KLCI shedding 2.73pts yesterday. Several retail stocks tumbled following the news that the US’ SEC will investigate Aeneas Capital Management. Tan Sri Azman Mokhtar’s second attempt to take AmCorp Group private at RM1.40/shr may spur trading interest in the stock today. Other local news are Hiap Teck’s excellent 4Q06 results, the lower vehicle sales in August (-6.4%), representing a consecutive seven-month of decline as higher interest rates and the lower value of used cars deterred purchases. Also, the award of RM13m contract by Petronas Carigali to Tanjong Offshore, Lion Forest capital distribution raised to RM2/shr from RM1.20/shr and Oilcorp’s RM15m acquisition of a deepsea fishing company. Meanwhile, CIMB has issued 20m and 30m of Sime Darby and Gamuda call warrants, respectively. Despite the oil price dipping below US$62pb, market may be cautious ahead of the FOMC meeting tonight. Nevertheless, consensus has anticipated the Fed to keep interest rate on hold at 5.25%. In addition, the military coup in Thailand and weaker close on the Dow may dampen today’s sentiment. On the local front, Aug CPI number will be released today, expected at 3.6% (Jul: 4.1%).
posted by nomadhunter at 7:13 PM
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