FBMKLCI 1684.63 +1.93pts (+0.11%) Volume 1,215mil Value RM1,299mil
1) KLCI were marginally higher after trading sideways for most of the day, as local market lagged behind China+3%, HK+0.6% which rose after a China regulator said country could boost its FDI by 10 times in its financial markets. Investors will now look ahead to corporate earnings in US for indication in strength of global economy. Market breadth ended mixed with gainers matching decliners at 323. Future closed 1691.5 (7points premium).
2) Heavyweights: GENTING+0.84% RM9.59, MAYBANK+0.33% RM9.03, YTLPOWR+3.75% RM1.66, PCHEM+0.48% RM6.26, GENM-1.39% RM3.56, SIME-0.31% RM9.56, BAT-0.99% RM60.30, TM-0.52% RM5.80
3) DBT: MBMR 2.53mil @ RM3.41 (2.7% premium), GWPLAST 1mil @ RM1.21, PLS 1mil @ RM1.16
4) Situational:
PATIMAS+10% RM0.16: Company topped the volume list after Datuk Seri Abdul Azim Zabidi surfaced as a substantial shareholder with a 5.44% stake in the company. News reported Azim is negotiating with several parties on best solution to rescue Patimas from PN17. Azim recently also surfaced as a substantial shareholder in Tiger Synergy.
SPSETIA+1.28% RM3.16: Share price rose after the Battersea power station project received overwhelming response for the 800units first phase. Of the 800units, 400units has been allocated to Malaysian buyers, 200 units to UK buyers, 100units each to Singapore and HK. The Chancellor of the Exchequer has also confirmed the UK government will support a 1bn pound loan and a guarantee to extend the Northern line underground monorial to the project.
5) WCT : With regards the proposed acquisition of the entire equity interest in Timor Barat Properties SB by Iris Green SB (100% subsidiary of WCT) for a total cash consideration if RM450m, RHB Investment Bank (on behalf of the board) has announced that the Vendors have agreed that the extended conditions precedent period shall be further extended from 15 January 2013 to 31 January 2013. Unless the SSA becomes unconditional on or before 15 Jaunary, Iris Green will have to pay the vendors the sum of RM793,560 being interest for the period of extension commencing fron Jan 15 to Jan 31 at the rate of 5%, calculated on RM380,909 (being RM450m less deposit of RM45m and less Conversion premium of RM24.09m). The interest sum is not refundable & will be forfeited if the SSA is rescinded for any reason other than for a breach of the terms of the SSA by any of the vendors; Neutral.
6) Mkt: continue with its consolidation mode as it awaits positive leads; accumulate on weakness Naim, SKPetro, Alam, Perdana, Armada, KEuro.
