KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
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...