1) KLCI started the new week on a weaker note in tandem
with the regionals on renewed concern about the euro zone debt crisis after
Spanish bond yields spike with cost of protection surging to all time high.
Index fell to a low of 1594.63 (-8.49pts) before paring its losses on buying
support for heavyweight albeit in a lightly traded market.
Market breadth turned negative with losers thumping
gainers 428:272. Futures closed 1598 (0.5 point premium).
3) DBT: DUTALND 5.7mil @ RM0.49, E&O 2mil @ RM1.50
4) Situationals:
KEURO+2.4% RM1.28: News reported signing of concession agreement
for the
West Coast Expressway (WCE) with the Government is
expected to be held within the next 2 weeks with some adjustments to the
original terms for the proposed concession.
The company has indicated that they are still interested in acquiring a stake in Indonesian Bank, PT Bank Ina Perdana provided that Indonesian regulators allow foreign ownership of at least 51%. It is also continuing to explore with substantial shareholder, Bank of East Asia on opportunities to leverage off BOEA's network in China to offer Islamic banking services.
The company is on tract to meet Basel 3 requirements set
for enforcement next year as they are well capitalized with 83% in Tier 1
capital.
6) Market - The KLCI remains in overbought territory and
is susceptible to trending lower on any negative news. Maintain consolidation
with downside support of 1580pts.
