1) KLCI was lower inline with the global equity markets
which continued to fall on worries China's economy are showing signs of
slowdown and renewed concern Europe's debt crisis will worsen. Market was
thinly traded with index only -3points before dipping to a low of 1572.95 (-15.11pts) on an apparent error trade of KLK which fell
to RM17.00. Broader market was negative with decliners doubling
gainers 481:233. Futures closed 1575.5 (9 points discount).
2) Heavyweights: GENTING-1.69% RM10.50, PPB-1.94%
RM16.16, CIMB-0.26% RM7.63, AIRASIA-1.37% RM3.60, PCHEM-0.46% RM6.54,
HLBANK-0.99% RM12.06, UEMLAND-1.48% RM2.00, DIGI+0.49% RM4.07,
3) DBT: DAYA 6mil @ RM0.20 (3.4% PUC, 52% discount),
REXIT 1.1mil @ RM0.25
4) Situationals:
XDL+2.04% RM0.25:
Share price was firmer after company said it plans for a primary listing on the Hong Kong stock exchange.
XDL will delist from Bursa Malaysia within the next 18months should the plan go
through.
5) KIM LUN
The company was awarded a contract by Esquire Corner Sdn
Bhd for the construction of apartments and ancillary buildings in Shah Alam,
Selangor . The contract sum for the Project is RM148.54m and is expected to be
completed by September 2014.
6) MAYBANK
Maybank Kim Eng Holdings Limited, an indirect
wholly-owned subsidiary of Maybank, has today acquired a call option over
15,435,000 ordinary and paid-up shares of par value Vietnam Dong 10,000 each in
Kim Eng Vietnam Securities Joint Stock Company ("KEVS") ("Call
Option"), representing approximately 51.45% of the charter capital of KEVS
("Option Shares") from the local founding shareholders of KEVS for a
cash consideration of VND308.7 billion (or approximately RM45.38 million based
on the prevailing exchange rate of RM1:VND6,803 as at 10 May 2012).
Maybank Kim Eng currently owns approximately 48.55% of
the charter capital of KEVS. The principal activities of KEVS are to provide
securities brokerage services, proprietary trading activities, investment
consultancy, investment portfolio management, underwriting activities and
securities depository activities.
The Call Option and other relevant agreements provide
Maybank Kim Eng among others, effective control of all the voting shares of
KEVS, thus making KEVS an indirect subsidiary of Maybank. The purpose of the
Call Option is to facilitate the acquisition of the Option Shares when the
foreign ownership limitation in established Vietnamese securities companies has
been lifted or removed.
With KEVS becoming an indirect subsidiary of Maybank,
Maybank will be able to accelerate and realise its vision of becoming a
regional financial services leader in South East Asia by combining Maybank's
commercial banking presence with Maybank Kim Eng's growing stock broking and
investment banking presence in Vietnam.
7) Market - Focus will continue to be on the on going
European sovereign debt crisis but today's moderate inflation numbers from
China has given renewed hope of allowing the government to further ease
policies to counter the slowing economy.
