FBM30 1601.89
+7.79prs (0.49%) Volume 1.18b Value
RM1.63b
1) The KLSE traded higher, after US home prices fell at
the slowest pace in more than a year & speculation that China will do more
to boost economic growth. The index rose early in the session and traded
sideways largely before late buying pushed it to close at day's high of 1601.89
pts. Construction -1.1% was disappointing, MUHIBBAH-15%, WCT-2.9% GAMUDA-1.7%,
IJM-0.8% . The broader market was fairly even, with gainers losing out to
losers 364:366. Futures closed 1604 pts ( 2.11 pts prem).
2) Heavyweights : MISC+5.2% RM4.42, GENM+2.6% RM3.56,
DIGI+2.2% RM4.26, YTL+1.5% RM2.03, PBBANK+1.3% RM13.09, BAT+1.8% RM56.00,
WCT-2.9% RM2.38, GAMUDA-1.7% RM3.44.
3) DBT : LUSTER 25m @ RM0.14, MPHB 13.5m @ RM3.39,
PATIMAS 10m @ RM0.07.
4) Situationals;
MUHUBBAH -15% RM1.02 : after Co announced that CIMB Bank
has withdrawn it's support of the planned scheme to restructure Asia Petroleum
Hub (APH). APH was placed under receivership in January & CIMB had appointed
Pricewaterhouse & Coopers to oversee the restructuring. Muhibbah is one of
the main contractors for APH.
UMW +0.6% RM9.05 : Co said it was buying more oil rigs as
it seeks to grow it's O&G business in Malaysia. In a Bursa filing, UMW said
it was buying a drilling company & an oil rig that is under construction
for USD214m ( RM683m). UMW also has an option to buy an additional jack-up rig
for USD212m. The proposed acquisition is in line with group's plan to raise
revenue & profit contribution of it's O&G division, to offset the
cyclical nature of it's auto business.
5) MHB: announced that it's wholly owed subsidiary MMHE
SB has successfully bidded for the F14/F29 project award which comprises 3
structures by Sarawak Shell Bhd. The combined contract value of the project is
RM278m. The 1st & 2nd jobs are for the procurement, fabrication &
pre-commissioning of the F14DR-A topside & F14/F29 process module, while
the 3rd job is to fabricate the F14DR-A jacket. With the addition of this new
award, MHB would have 2 projects being fabricated simultaneously at it's MMHE
West Yard - the other being Gumusut-Kakap Floating Production System. The
F14/F29 would enhance the production of gas in Sarawak as these structures
would be installed at gas fields located at a water depth of about 320 feet
when they are completed in about a year's time; +ve, to add to earnings and O/B
of RM3b. The 40% decline in share price from it's July 2011 peak has largely
discounted it's slow O/B replenishment, which should improve in 2HY 2012 - BOW.
6)Mkt: focus on Felda Global Ventures(FGV MK) listing
tomorrow with consensus 12-month target price of RM5.53 versus IPO at RM4.55.
Expect plantation stocks trading to be affected by the performance of Felda.
