1) Stocks erased its morning gains (HI:1600.67 +3.16pts) as heavyweight succumbed to selling pressure in the afternoon inline with the weaker regionals which fell after foreign direct investment into China dropped for a fifth month while Spanish borrowing costs climbed to the highest level this year stoking fears of a resurgent in Eurozone debt crisis. Volume reached 2bn as buying interest was evident in penny stocks led by AGLOBAL+74%, MTRONIC+13%, FOCUS+15%. Market breadth was marginally positive with gainers edging decliners 355:341. Futures closed 1598 (2 points premium).
2) Heavyweights: MAYBANK-0.45% RM8.81, AXIATA-0.56%
RM5.36, YTL-1.15% RM1.72, ARMADA-0.9% RM4.41, BAT-0.4% RM54.46, RHBCAP-0.53%
RM7.55, SIME+0.2% RM9.90,
3) DBT: TRIUMPL 8.5mil @ RM0.60 (33% discount), RPB
2.9mil @ RM0.38 (14.6% discount)
4) Situationals:
ARMADA-0.90% RM4.41: Share price rose to a high of RM4.53
before seeing some profit taking as company announced its Derrick pipelay barge
has been awarded RM600mil by Lukoil for engineering, procurement, installation
and commissioning contract for the Filanovsky field in Russia's Caspian Sea. This
brings total firm orderbook to RM7.6bn.
AGLOBAL+74% RM0.20: Bursa issued an UMA query to AGLOBAL
today following
sharp rise in share price with company topping the volume
with 520mil shares traded. Trading was suspended at 4.05pm and board of
directors responded that they are not aware of any factor which contributed to
the UMA after making due enquiry with the directors. Trading will resume
tomorrow. 5) CIMB
At its EGM today, its CEO was quoted as saying that they hoped to complete negotiations soon on its proposed acquisition of a stake in the Bank of Commerce belonging to San Miguel Corp, a diversified Philippines conglomerate. CIMB is also applying for a new license in South Korea and expanding into the Asean region which includes Laos, Myanmar and Vietnam.
Furthermore on the non interest income front, it is
looking at new stockbroking and corporate finance licences and intends to offer
stockbroking and advisory (services) in all the markets.
+ve as it competes with its closes local rival Maybank in
expanding into the region.
6) Market - Cautious mood to be maintained ahead of Spain
bond auctions in the next few days. Immediate support 1580pts.
