KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Reaffirmed Outperform with target price (TP) of RM1.90 SapuraKencana Petroleum’s (SAKP) wholly-owned subsidiary SapuraKencana Mexicana S.A.P.I. de C.V. has been awarded a USD113m (c.RM461m) contract by Pemex Exploración y Producción for an approximate 8-9 months duration. The award is for the procurement and construction of a 36-inch by 18km sour gas pipeline (KMZ – 76) from platform E – KU – A2 to Platform CA – AJ – 1(J4) in Ciudad del Carmen, Campeche, Mexico. We are pleased with this announcement as the award underpins the Group’s progress in Mexico, having first initiated its local operations in May 2015. Aside from providing contract replenishment and moreover enhancing earnings visibility to the Group, the contract concedes that SAKP’s execution capabilities are intact and is poised for more jobs in the region going forward. Our Outperform recommendation on SAKP is thus reaffirmed, with a TP of RM1.90 based on our blended SOP valuation. Contract de...