FBMKLCI
1796.36 -5.47pts (-0.30%)
Volume 2.140b Value 1.782b
1) The
KLCI fell today after topping above the 1800 level as the US market closed
lower on the back of the quadruple witching where index futures, stock index
options, stock options and single stock futures all expired on the same day. In
the regional market, SHCOMP +1.33% reopened today and continued where they left
off just before the US QE rally while the HSI -0.56% and NIKKEI -0.16% were all
lower today on overall weaker sentiments as the US debt ceiling talks looms. In
the local market, Financial index led in losses weighed down by names like CIMB
-1.60%, MAYBANK -0.58%, HLBANK -0.83%. Market breadth was skewed towards the
negative with losers edging over gainers by 390 : 358. Futures closed 1791.5pts (5 pts discount).
2) Heavyweights : CIMB -1.60% RM7.95, MAYBANK -0.58%
RM10.24, UMW -1.86% RM12.66, BAT -1.71% RM63.00, DIGI -0.80% RM4.96, IHH -0.93%
RM4.23, AMBANK -0.78% RM7.60, RHBCAP +2.17% RM7.97
3) DBT : KHSB 19.32mil @ RM0.836 ( 4.293% PUC), PALETTE
4.867mil @ RM0.05 (1.675% PUC @ 29% discount), MAS 3.2mil @ RM0.32
4) Situational:-
TCHONG +0.62% RM6.40 - Tan Chong Motor has received
approval of its Labuan based ETCM Pte Ltd subsidiary's investment proposal and
a 50-year permit from the Myanmar Investment Commission, to manufacture and
market motor vehicles at the industrial area of Bago region in Myanmar. TCM
will construct a plant within a year to assemble Nissan vehicles to be sold in
Myanmar. TCM said that the total capital outlay, including the construction of
assembly plant and showroom, purchase of machineries and equipment for the
initial first three years is estimated at US$50m and will be funded internally
and from external borrowings.
5) IRIS : IRIS Healthcare Sdn Bhd ("IHSB"), a
wholly-owned subsidiary of Iris, and 3 other parties have collectively offered to acquire all the
ordinary shares of RM1.00 each in Versatile Creative Berhad ("VCB")
not already owned for a cash consideration of RM0.50 per VCB Share ("Offer
Price"); +ve. Recall that on 19 September 2013, Iris has entered into a
MOU with Federal Land Development Authority ("FELDA") to implement
seven (7) Sentuhan Kasih projects in several states in Peninsular Malaysia.
Sentuhan Kasih is Iris's rural development plan to sustainably provide basic
needs and amenities, modern infrastructure, all of which are supported by
modern integrated farming. Part of Iris's proposed business plan is to set up
Food Distribution, a division that will be involve in marketing and
distribution of farm produce from Rimbunan Kaseh and Sentuhan Kasih farms. The
Food Distribution division may package the fresh produce from these farms and
to distribute and market them. VCB and its subsidiaries ("VCB Group")
is mainly involved in the manufacturing and trading of paper board packaging
products, specialising in offset-printed boxes and offset-laminated cartons;
manufacturing and sale of plastic packaging products; and provision of colour
separation and lithography services and printed material. Thus, the proposed
acquisition of VCB Group will be a strategic fit into the proposed business
plan of ICB Group in the Food Distribution division.
6) Market: to
consolidate after its recent strong gains as the KLCI Index runs into strong resistance around the 1800 levels,
coupled with the recent lost in momentum as seen from the marked drop in
volume.
