FBM30 1525.56, +3.27 points (+0.21%), Volume 1,515mil, Value 1,579mil
1) KLCI continued to track higher recording 4 straight days of gains, ignoring regional markets which closed in -ve territory as easing inflation in China failed to overcome worries over fresh worries in Europe's economy. Index managed to close at day's high due to firm buying seen in select bluechip names: GENTING+1.9%, TENAGA+1.1%, Gamuda +1.9%, Bursa 2.48%, MISC +1.6%, Proton +3.4%. TECHNOLOGY (-1.6%) led the losers with JCY-4.2%, DATAPRP-5.4%, GPACKET-1.7% as profit taking set in on recent outperformers. Market turning 2 tiered as losers edged gainers 418:351. Futures closed 1524.5 (1 point discount).
2) Heavyweights: GENTING+1.9% RM10.96, TENAGA+1.1% RM6.23, MAYBANK+0.4% RM8.25, MISC +1.65% RM6.15, PETGAS+0.5% RM15.44, DIGI+0.3% RM3.92, GENM-1.3% RM3.85, KLK-0.7% RM24.52, PBBANK-0.2% RM13.18.
3) DBT: SCOMI 14.8mil @ RM0.15 (1.2% PUC, 47% discount), TMS 12.4mil @ RM0.09 (2.5% PUC, 14% discount), IPMUDA 10mil @ RM0.54 (13.8% PUC, 21%discount).
4) Situationals:
BPURI+5% RM0.945: Stock gained as much as 10% after company confirmed it is finalizing terms with the National Highway Authority of Pakistan for a concession to upgrade and operate the Hyderabad-Karachi highway. Executive Director Matthew Tee said, "Our team is currently negotiating with the authorities on finalizing the concession agreement," in a telephone interview today, confirming an Edge Financial Daily report. Bina Puri aims to conclude negotiations before the Lunar New Year holidays which start this year on Jan. 23. The construction cost is estimated at 18.2 billion Pakistani rupees ($202m).
5) Takaso: Takaso Resources (TRB) today announced that it had executed a Heads Of Agreement (HOA) with Kayu Emas (PNG) Ltd to set forth the general understanding reached between the 2 parties & they are desirous of entering into more detailed definitive Agreements to formalize the arrangements. Among the terms of the general understanding, TRB shall conduct it's independent due diligence findings to verify the presentation by Kayumas ( so far including it's concession timber licence and a representation of loggable area of up to 40,000 ha of timber in Papua New Guinea), including the projected profits from the said concession. The 2 parties also aim to enter into formal agreements within 3 months from the date of the HOA. TRB may acquire 100% of Kayumas if it so wishes; +ve but expected.
6) Mkt - upward momentum to continue as mkt heads towards CNY with rotational interest amongst lower liners and sectors. Sime-heavyweight laggard and cheapest big cap plantation stock, trading at PER'12 14x against industry average of 16x. Expectations of higher CPO and possible spillover interest from FELDA listing in April to buoy interest in stk-BUY.
