BURSA MALAYSIA (THU, 10 JAN 2019)
MID-DAY LUNCH BREAK REVIEW
BRIEF MARKET REVIEW:
The FBM KLCI pared some of its gains at the midday break as regional markets paused from their recent rally. At mid-day, the FBM KLCI was up 8.76 points to 1,676.59. The index had earlier risen to a high of 1,681.23. Gainers led losers by 437 to 325, while 317 counters traded unchanged. Volume was 2.18 billion shares valued at RM1.23 billion.
Asia markets traded mixed Thursday afternoon following lower-than-expected Chinese inflation data while investors digested the conclusion of a three-day trade negotiation between the U.S. and China.
China’s December consumer inflation (CPI) — a gauge of prices for goods and services — rose 1.9% on year. That was lower than economists’ expectations of a 2.1% growth, according to a Reuters’ poll. Producer inflation rose 0.9% on-year in December, which was lower than the 1.6% economists were expecting. The latest inflation figures came on the back of poorer-than-expected Chinese manufacturing data for December.
Economic data from the world’s second-largest economy has been closely watched by investors for signs of damage inflicted by the trade war between Beijing and Washington. To stimulate a slowing economy, the Chinese government has taken measures such as reducing the reserves required to be held by banks in the country to encourage lending.
STOCKS IN THE LIMELIGHT:
WCT HOLDINGS BHD (RM0.79, +3.95%)
Shares in WCT Holdings Bhd, which is substantially owned by Tan Sri Desmond Lim of the Pavilion group with a 19.67% stake, rose 2.63% this morning after the group said it would with China-based China Communications and Construction Group (CCCG), jointly develop the first residential project at the Tun Razak Exchange (TRX) here, with an estimated gross development value (GDV) of RM1.1 billion.
Its joint venture company with CCCG, CORE Precious Development Sdn Bhd, officially held the groundbreaking ceremony today and is understood to still be in the midst of tendering the project to a main contractor. CORE Precious is 20%-owned by WCT and the other 80% is owned by CCCG.
The development features two serviced residence towers and one serviced apartment tower and is scheduled to be completed around the end of 2022. The stock closed mid-day at RM0.79, up 3.95%, with a high volume of 5.6 million shares traded.
EVERSENDAI CORPORATION BHD (RM0.675, -3.75%)
Eversendai Corporation Bhd has landed projects in Singapore, India and Qatar worth about RM406 million in total. In a filing to Bursa Malaysia today, Eversendai said the jobs were secured via its subsidiaries Eversendai Engineering Pte Ltd (Singapore), Eversendai Construction Pte Ltd (India) and Eversendai Engineering Qatar W.L.L. Eversendai said it expects the projects to contribute positively to its earnings for FY2019 and FY2020.
Eversendai closed at RM0.675 at mid-day on a high volume of 1.2 million shares traded.
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