FBM30 1583.78 +10.33 points (+0.66%) Volume 1,630.3mil Value 1,934.5mil
1) Market rallied for the third consecutive day, led by core blues as investors are positive on the global economy following positive economic data in US overnight while there are signs Europe's leaders will speed up the timetable for setting up a bailout fund. Index touched a high of 1587.11 (+13.66pts) just slightly below its all time high of 1597pts. Rotational play saw water related stocks surging led by KHSB+12%, Puncak+9%, KPS+5% as broader market was also positive with gainers doubling decliners 540:276. Futures closed 1587 (3 points premium).
2) Heavyweights: CIMB+2.23% RM7.33, PCHEM+2.22% RM6.90, DIGI+1.98% RM4.12, GENTING+1.34% RM10.60, YTL+4.7% RM1.78, SIME+0.5% RM9.98, AMMB+1.46% RM6.26, PPB-1.97% RM16.94
3) DBT: ASIABIO 11.9mil @ RM0.05 (3.1% PUC, 28.5% discount), HIBISCS 6mil @ RM1.78 (1.4% PUC), SUNREIT 4.9mil @ 1.25
4) Situationals:
CIMB+2.23% RM7.33: CIMB signed a MOU for the proposed acquisition of certain businesses of The Royal Bank of Scotland (RBS) in Asia Pacific. The acquisition is for certain cash equities, equity capital markets and corporate finance business of RBS in Asia Pacific.
5) EBWorx: announced that it's Board has received a letter from Hitachi Ltd (potential buyer) in respect of a potential proposal to acquire all the outstanding ordinary shares of the company by a conditional voluntary general offer at an indicative price of RM0.90, subject to the terms set out in the proposal. Subject to the conditions including completion of due diligence by the potential buyer, no material adverse change in the company, the retention of key personnel and receipt of all internal approvals by the potential buyer, proposes to acquire the shares with a minimum level of acceptances of no less than 85% of the nominal value of the shares. The indicative price of RM0.90 per share is subject to adjustments following the outcome of the due diligence or any dividends to be made prior to making the offer; Neutral, the offer price of RM0.90 represents a premium of 11% to last traded of 78.5s.
6) Mkt: continued flows into emerging markets will squeeze the local bourse higher towards the KLCI 1600 level. Stocks at attractive levels for a trade are MRCB, Gamuda, Benelac, LionInd, L&G, Globetronic, MPI.
