FBMKLCI
1706.68 +0.40pts
(+0.02%) Volume 784.6mil Value RM1,348mil
1) KLCI saw cautious trading with index trading in a
tight range before closing near overnight level. Regional were positive on
speculation earthquake in China could spur demand while Italy political risk
eased following reelection of President Napolitano for 2nd term. Properties-1%
underperformed with recent outperformers UEMLAND-1.46%, IJMLAND-3.4%,
TEBRAU-5.3% seeing profit takings. Market breadth was firmly negative with
decliners more than doubling advancers 463:212. Futures closed 1699.5pts (7pts
discount).
2) Heavyweights: MAYBANK+0.72% RM9.77, PBBANK+0.25%
RM16.32, GENM+1.09% RM3.70, AXIATA+0.3% RM6.74, IHH+0.82% RM3.68, UMW+0.6%
RM13.40, GENTING-1.96% RM10.00, TENAGA-0.25% RM7.88
3) DBT: PMCORP 14mil @ RM0.12 (1.8% PUC), PJI 12mil @
RM0.115, DIJACOR 4mil @ RM1.50
4) Situationals:
MISC-13.77% RM4.57: Share price fell to a low of RM4.50
after the proposed takeover by Petronas at RM5.50 a share has been withdrawn.
This is due to insufficient mandate from the minority shareholders of MISC.
Petronas had only secured 86% of MISC below the 90% threshold for the offer to
turn unconditional.
5) WASEONG
Announced that its wholly-owned subsidiary, PMT
Industries Sdn Bhd entered into a Joint
Venture Agreement with Shinko Ind. Ltd., for the purpose of combining their
capabilities and expertise in commencing and carrying out the business of
manufacturing turbines and any other related ancillary equipment, parts and
spares as specifically agreed by the parties through a proposed new joint
venture company. Shinko is inter alia in the business of manufacturing and
producing turbines and pumps and possess wide technical knowledge in
manufacturing these products. SHINKO has been extremely successful in
manufacturing and supplying pumps and turbines to marine and general industries
since 1938. Using its own technology, SHINKO has designed and manufactured more
than 10,000 sets of steam turbines since they developed the technology in 1956.
Today, SHINKO is one of the world's most reputable brands
for steam turbines with an established reputation for quality, reliability and
performance.
The JVA and to be held in the proportions of 51% and 49%
by SHINKO and the Company respectively. The principal object of the proposed
new JV Company shall be manufacturing turbines and any other related ancillary
equipment, parts and spares. Through this collaboration, SHINKO and PMT will
combine their capabilities, resources and expertise to commence and expand
further the business of manufacturing turbines and any other related ancillary
equipment, parts and spares. It will also provide SHINKO with its first
manufacturing base outside Japan to increase its manufacturing capacity and
establishing proximity with end users. The proposed new JV Company will enhance
technical collaboration between the JV Parties and create competitive advantage
to promote further growth of SHINKO steam turbines in the agro-based and
renewable energy sectors.
6) Market - Investors are taking a more defensive stance
ahead of GE13 on May 5th and thus should see a shift back into core blues from
recent mid caps with the KLCI maintaining a range between 1680-1700pts levels.
