11 Feb 2014 -BC Daily Trading Floor

Trading ideas: Coastal Contracts, Petronas Gas, Gamuda

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cmsb-cb, dayang-cf, digi-cs, supermax-co, wct-wb, coastal-wa ...     

dsonic ...   

happy trading all ...

Economy

US: House to vote Feb 12 on debt-limit increase plan. The House plans to vote Feb. 12 to increase the US debt limit and restore cost-of-living raises for military retirees, said Representative Robert Pittenger of North Carolina. As the party struggles to gather votes for raising the debt ceiling before borrowing authority runs out, Treasury Secretary Jacob J. Lew today took steps to keep the US under the debt ceiling and urged Congress to raise the limit to avoid “potentially catastrophic consequences.” (Bloomberg)

US: China urged to finalise investment treaty in 2014. The United States and China should aim to complete a planned investment treaty this year, the US-China Business Council (USCBC) said on Monday. The world's two biggest economies agreed in July to restart stalled negotiations on an investment treaty, with Beijing dropping previous efforts to protect certain sectors of its economy from the start. "It's very important for us to grasp this opportunity to try to move forward and see how serious they are," USCBC President John Frisbie said in unveiling the council's annual priorities statement. Previously, Beijing had agreed to talks only if certain Chinese industries, especially in its service sector, were exempt. But it agreed to drop blanket restrictions for the current talks. Frisbie said China had to start dismantling restrictions on foreign investment in sectors including automotive, financial services, agriculture and health to help overcome US domestic resistance to greater ties with China. (Reuters)

EU: Banks’ debt addiction threatens ECB-led overhaul. Domestic euro-area government debt accounted for 4.3% of total bank assets in Dec, according to ECB data, up from 3.5% in June 2012, when euro leaders launched the banking union, and from 2% in Sept 2008, when Lehman Brothers Holdings Inc. collapsed, triggering the financial crisis. For the ECB, the appeal of state debt is a concern as it ponders further stimulus amid anemic consumer-price growth. Draghi said before the central bank would offer more low-cost liquidity, “we will want to make sure that this operation is not going to be used for subsidizing capital formation by the banking system under these carry-trade operations.” (Bloomberg)

EU: French recovery seen struggling to pick up speed. France will eke out meager economic growth in the first three months of 2014, the central bank said on Monday, as the euro zone's second-biggest economy struggles to avoid falling further behind the pack. Data on Monday showed French industrial production dropped 0.3% in Dec from Nov, falling short of expectations, although the figure for the fourth quarter as whole was positive. The weakness of France's recovery is adding to pressure on President Francois Hollande to deliver faster growth. In its first estimate of first-quarter GDP, the Bank of France forecast that the economy would grow 0.2% in Jan-March compared with the final quarter of 2013. That would mark a slowdown from Oct-Dec, when the central bank has estimated the EUR2trn (USD2.7trn) expanded 0.5%. (Reuters)

China: Signals volatility in money markets will persist. China‟s central bank signaled that volatility in money-market interest rates will persist and borrowing costs will rise, underscoring the risk of defaults that could weigh on confidence and drag down growth. “When the valve of liquidity starts to tame and curb excessive credit expansion, moneymarket rates, or the cost of liquidity, will reflect that,” the People‟s Bank of China said in a Feb 8 report. “The market needs to tolerate reasonable rate changes so that rates can be effective in allocating resources and modifying the behavior of market players.” (Bloomberg)

Japan: Puts its faith in service sector spending. One of the central goals of “Abenomics”, the growth strategy that Mr Abe launched a year ago, is to coax businesses to spend more – on everything from payrolls to factories, equipment and infrastructure. Spending is something that many have been reluctant to do during the country‟s 15 years of deflation, preferring instead to hoard cash, refocus on foreign markets or both. If that does not change, experts say, Japan‟s recent recovery is likely to be shortlived. (Financial Times)

Japan: Record low current account surplus. Japan posted its smallest current account surplus on record last year, throwing the spotlight back on Tokyo‟s ability to service its huge debt and exposing a danger point in an economy starting to find its feet after years of underperformance. The world‟s third-biggest economy sped past many of its Group of seven counterparts in 2013 spurred by an aggressive mix of fiscal and monetary expansionary policies. But a deteriorating external position has cast a shadow on the recovery as policy makers worry that the economy may falter if exports do not regain momentum. (Reuters)

Malaysia: Dec 2013 industrial output index rises 4.8%. Malaysia‟s Industrial Production Index (IPI) increased 4.8% in Dec 2013 compared with the same month a year ago, reported the Statistics Department. The increase was contributed by growth in the manufacturing and the electricity indices by 6.7% and 6.0%, respectively, while the mining index fell by 0.8%. The IPI in Nov 2013 has been revised to positive 3.8% yearon- year. (Bernama)
Markets

Coastal Contracts: Lands RM1.24bn charter job. Coastal Contracts wholly-owned subsidiary Thaumas Marine Ltd (TM) has secured a charter contract for the provision of a self-elevated jack-up service with gas compression capabilities to Mexico‟s state oil company, Petroleos Mexicanos (Pemex) worth RM1.24bn. The group‟s total order book now stands at about RM2.5bn. Coastal Contracts said the charter contract will commence in the second half of 2015 for a period of eight years, with an extension option of up to 12 years. (Financial Daily)

GHL Systems: Expects earnings to more than double after acquisition. GHL Systems expects its profit to more than double following its acquisition of Australia-listed e-pay Asia Ltd. CEO Raj Lorenz expects meaningful contribution from e-pay to start from the 2Q of the current FYE Dec 31 (FY14). However, because GHL could be issuing up to 246.28m new shares to finance the acquisition (a 132.7% increase from its current number of issued shares), EPS would also be diluted from 2.33 sen to 2.29 sen. (Financial Daily)

F&N: 1Q net profit jumps 21% to RM68.77m. Fraser & Neave Holdings (F&N) reported a 21% jump in net profit to RM68.77m for 1QFY14, from RM56.82m in the previous corresponding period, contributed by soft drink sales and its dairies operations in Malaysia and Thailand. However, no dividend was declared. Going forward, the group said its prospects remained challenging as the budget rationalisation efforts by the government could impact consumer disposal income. (Financial Daily)

AirAsia: 25% increase in passengers last year. AirAsia flew a total of 42.6m passengers for the whole of 2013, up 25% from 34.1m in 2012. According to AirAsia preliminary operating statistics released yesterday, the low-cost carrier carried 11.8m passengers, a whopping 28% increase in 4Q13 (Dec), compared with 9.2m in the previous corresponding quarter. It said the group recorded a load factor of 81% in the fourth quarter. For the full year, AirAsia said the growth in capacity stood at 26% allowing the group to close the year with load factor of 79%. In 2013, AirAsia said it carried 21.8m passengers from Malaysia, 10.5m from Thailand, 7.9m from Indonesia and 2.2m from the Philippines. (StarBiz)

Petronas Gas: Regasification revenue boosts PetGas 4Q net profit. Petronas Gas (PetGas) says its 4Q13 (Dec) net profit climbed to RM393.7m from RM295m a year ago, while revenue increased to RM1.02bn against RM909m previously. The improved performance was driven by regasification revenue following commencement of the group‟s LNG Regasification Terminal operations in second quarter of 2013 and higher gas transportation revenue. The increase, however, was partially offset by lower utilities revenue on fall on off-take by customers. (StarBiz)

Oil and Gas (Overweight): MMHE, Sapura Kencana, THHE shortlisted for RM1.5bn gas project. Petronas Carigali SB has shortlisted Malaysia Marine and Heavy Engineering Holdings (MMHE), Sapura Kencana Petroleum and TH Heavy Engineering (THHE) for the Baronia gas project tender worth an estimated RM1.5bn. The three Malaysian firms were among 11 local and foreign O&G firms shortlisted for the tender, according to Upstream Online. The outcome of the tender will be announced before June, said the specialist news portal. (Financial Daily)
MARKET UPDATE

US markets inched slightly higher overnight as investors await the maiden speech by new FED Chair Janet Yellen on monetary policy, though nothing new is expected to be revealed in that current policies of gradual tapering and low short-term rates will remain the order of the day despite the weak underlying employment numbers recently. The Dow Jones Industrial Average was 0.1% higher while the S&P 500 closed 0.2% higher.

European markets had mixed reactions to lower-than-expected December industrial production numbers in France and Italy which declined 0.3% and 0.9% respectively, with the CAC 40 (France) gaining 0.2% and the FTSE MIB (Italy) slipping 0.1%. Amongst the other key benchmarks, UK‟s FTSE 100 and Germany‟s DAX gained 0.3% and declined 0.1% respectively. Spain‟s IBEX 35 saw a more pronounced 0.9% fall.

Most Asian markets closed higher for the day, led by the Shanghai Composite Index‟s 2.0% gain as reportedly strong sales figures during the Chinese New Year period boosted confidence in the country‟s consumer strength even as economic momentum slows as a result of the government‟s engineering away from investment-led growth. The Hang Seng Index declined 0.3% however, though the Straits Times Index inched 0.1% higher. Closer to home, Indonesia‟s JCI and Thailand‟s SET Index slipped 0.4% and 0.5% while the FBM KLCI gained 0.4% led by buying in MISC (+2.1%), CIMB Group (+2.0%) and IOI Corporation (+1.9%).

Coastal Contracts continues to growth in strength, this time round with the announcement of an 8-year RM1.2bn charter contract awarded by a group of Mexican upstream contractors for the provision of a self-elevated jack-up service with gas compression capabilities. Recall that the Group had recently expanded into the upstream oil and gas sector through the construction of a state-of-the-art jack-up drilling rig. Including this, the company‟s outstanding work orders stand at a whopping RM2.5bn, safely securing its growth prospects for the foreseeable future. PDZ Holdings, amongst the most actively traded stock in recent weeks, confirmed news reports that it was in preliminary negotiations with various parties to explore potential business dealings, amongst which are a China-based oil and gas player as well as a contractor with Petronas for an asset acquisition exercise. With the share price already having risen about 50% in just over a month, albeit from a relatively low base of 8sen, further movement will depend primarily on the structure of deal (should it materialize) and the pricing, considering the rather large 869.3m share base.

Source: PublicInvest Research - 11 Feb 2014

line v slow ...   

cya ...   

wow ... Susan Jie ... huat ar     

Good afternoon BC comrades... so quiet today  

yea kinda quiet.

KLCI still at resistance

carlsberg ?

topglove?
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Cals wrote:carlsberg ?

topglove?
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TOPGLOV-CP very uncle bb .... small play and took profit     

Watching MAYBULK ... anyone?

WinningHeart wrote:Watching MAYBULK  ... anyone?

Errrm.. nope, concern going to be trap for sometime as I think it need uncle play... may get yourself stuck for some time   looks a bit overbought, may go downhill tomorrow.. just my 2 cents   

In sona-wa just now, in 0.315, out 0.32, just some small play to test out this "hot sona" ... looks like steaming hot  today    

anonymous682 wrote:

WinningHeart wrote:Watching MAYBULK  ... anyone?

Errrm.. nope, concern going to be trap for sometime as I think it need uncle play... may get yourself stuck for some time   looks a bit overbought, may go downhill tomorrow.. just my 2 cents   

In sona-wa just now, in 0.315, out 0.32, just some small play to test out this "hot sona" ... looks like steaming hot  today    

huhu ... everyday those not yet goreng up counter will be goreng in rotation        

WinningHeart wrote:

anonymous682 wrote:

WinningHeart wrote:Watching MAYBULK  ... anyone?

Errrm.. nope, concern going to be trap for sometime as I think it need uncle play... may get yourself stuck for some time   looks a bit overbought, may go downhill tomorrow.. just my 2 cents   

In sona-wa just now, in 0.315, out 0.32, just some small play to test out this "hot sona" ... looks like steaming hot  today    

huhu ... everyday those not yet goreng up counter will be goreng in rotation        

good luck bro          ..  which maybulk bb u aiming now ? CK ?

anonymous682 wrote:

WinningHeart wrote:

anonymous682 wrote:

WinningHeart wrote:Watching MAYBULK  ... anyone?

Errrm.. nope, concern going to be trap for sometime as I think it need uncle play... may get yourself stuck for some time   looks a bit overbought, may go downhill tomorrow.. just my 2 cents   

In sona-wa just now, in 0.315, out 0.32, just some small play to test out this "hot sona" ... looks like steaming hot  today    

huhu ... everyday those not yet goreng up counter will be goreng in rotation        

good luck bro          ..  which maybulk bb u aiming now ? CK ?

just watching at the moment ... MAYBULK-CK is very sensitive to mum but today it's over sensitive so I didn't go in       

close of session 

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ace
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warrant
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