KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Fairly valued Kimlun’s JV with Zecon has clinched the first Pan Borneo Highway Sarawak package for 2016 worth MYR1.46b. This lifted its orderbook by 37% to MYR1.6b. Further job wins could come from other Klang Valley highways while precast orders could be boosted by MRT projects. We raise our 2016-18 EPS estimates by 8%-25% after imputing higher job win forecasts. Our new TP is MYR1.50 (+8%). HOLD; positive sentiment ahead of major infra work awards in the sector could lift valuations further. Increasing orderbook by 37% Kimlun’s 30% owned JV with Zecon (ZEC MK, Non Rated) has won a contract from Lebuhraya Borneo Utara (Non-Listed) for the Pan Borneo Highway Sarawak worth MYR1.46b. The total works are expected to complete in 48 months by 1Q20. This increased its outstanding orderbook by 37% to MYR1.6b. Assuming a pretax profit margin of 5%, we forecast a net profit contribution of MYR16m (5.5sen EPS) into 2020. Diversifying into infrastructure jobs This job win sig...