FBM30 1590.6
+5.73points (+0.36%) Volume
1,274mil Value 1,236mil
1) KLCI bucked the regionals ending at day's high on
relatively low volume as investors remains on the sidelines reeling from the
election uncertainties in the euro region over the weekend. Index traded in a
tight 4points before late mark ups of MAYBANK, IOICORP and PETDAG pushed index
above 1590 level. Broader market was positive with advancers leading decliners
404:307. Futures closed 1585.5 (5 point discount).
Heavyweights: CIMB+1.06% RM7.63, YTL+4.22% RM1.73,
GENTING+0.95% RM10.66, IOICORP+0.95% RM5.30, MAYBANK+0.46% RM8.75, PETDAG+2.68%
RM19.94, PETGAS+0.83% RM17.00, GENM-1.3% RM3.83
3) DBT: RPB 10m @ 0.38, Denko 5m @ 0.25
4) Situationals:
PERMAJU+20% RM0.875: Share price continued to surged
despite responding to Bursa's UMA that they are not aware of any corporate
developments relating to its business and affairs that could account for the
UMA.
CIMB+1.06% RM7.63: Trading was suspended at midday, as
CIMB announced that it has agreed to acquire 60% of Bank of Commerce,
the 16th largest bank in Philippines, for approximately RM881mil expanding its
commercial banking business in the Philippines. The proposed acquisition is
expected to be completed in the second half of 2012.
5) PERISAI
Entered into a Rig Construction Contract with PPL
Shipyard Pte Ltd (a subsidiary of
Sembcorp Marine), for PPL to design, construct, equip, commission and deliver
the Jack-up Drilling Rig to Perisai Labuan. The Jack-Up Drilling Rig is a
Pacific Class(r) 400 Jack-up drilling rig with technologically advanced
drilling capabilities. Designed and equipped to drill high pressure and high
temperature wells as deep as 30,000 feet, the Jack-Up Drilling Rig is capable
of operating in water depths of up to 400 feet and has full service
accommodation for 150 personnel. The price for the turnkey construction of the
Jack-Up Drilling Rig is a fixed lump sum of US$208 million, payable in two
portions, with an initial 20% payable upfront and the balance 80% on delivery
of the Jack-Up Drilling Rig. The Jack-Up Drilling Rig is expected to be
delivered by the end of July 2014.
Perisai Labuan has also been granted an option by PPL to
construct an additional rig of similar specification to the Jack-Up Drilling
Rig. The price for the Option Rig is US$210 million but is
subject to a revision should cost escalate. The delivery date for the Option
Rig, if the Option is exercised, is expected to be in the second quarter of 2015.
The Jack-Up Drilling Rig is expected to facilitate
Perisai's entry into the offshore drilling segment specifically in Malaysia and
broadly in the Asia Pacific region. +ve to allow Perisai to bid with the big boys for
marginal oil field concessions but this would substantially raise its net
debt/equity ratio of 0.7x currently if payment was via existing cash flow and
external borrowing hence we do expect the company raise part of the funding via
equity which will have an immediate dilution effect as the delivery of the
asset is only scheduled for end Jul 2014.
6) Market - Current tight range trading to continue on
uncertain environment.
