FBMKLCI 1804.21
-0.27pts (-0.01%) Volume
2.192b Value 1.873b
1) The KLCI traded sideways today, lagging behind its
regional peers even after the US market rose on better than expected job
figures on Friday indicated that the country was on a sustained path to
recovery. Global bourses were stronger as well after China posted better than
expected Industrial production (+10.3% for Oct from 10.2% in Sept) as HSI,
SHCOMP as well as NIKKEI all gained. In the local market, Technology index
+0.93% stocks continue to outperform the CI as the USD strengthened against the
MYR, with D&O +7.81%, FRB +5.66% and WILLOW +10.76% at the top of the list
for gainers. Market breadth was positive with gainers outpacing losers by 429 :
367. Futures closed 1798.5 (5.7pts discount)
2) Heavyweights: SKPETRO-1.39% RM4.25, UMW -1.58%
RM12.44, PCHEM -0.58% RM6.79, AXIATA -0.29% RM6.84, CIMB-0.26% RM7.60, DIGI
+1.01% RM4.97, TENAGA +0.42% RM9.43, GENTING
+0.38% RM10.36
3) DBT : MPHBCAP 80mil @ RM1.63 (11.18% PUC @ 2.4%
discount matches block owned by ASIA 4D), SUNWAY 9mil @ RM2.82, IJM 5mil @
RM5.70
4) Situational:-
BPURI +1.875% RM0.815 - Bina Puri has entered into a
joint venture with a Thailand-based developer and a Chinese businessman to
develop the Bangkok Marina Resort and Spa, a project with a gross development
value of RM200mil. The development would be undertaken by a special purpose
vehicle in which Bina Puri holds 56%, Thailand-based UFUN Group Ltd 29%, and
businessman Tang Cong Shun 15%. The project involves an area of 7.14ha and will
comprise 817 units of various property types. The construction is expected to
start in the first quarter next year and completion in end-2016.
5) Salcon
The Board of Salcon announced its intention to distribute
part of the proceeds from the proposed disposal of their China Water assets
which raised approx RM518m resulting in a gain of RM94.6m, of up to RM30.0
million to the shareholders of Salcon via a special dividend or other means,
such as capital repayment, the method of which will be determined at a later
stage, after taking into consideration, amongst others, the actual proceeds to
be received from the Proposed Disposal. The Proposed Distribution is
conditional upon the completion of the Proposed Disposals and subject to
obtaining all the requisite approvals.
This would translate roughly to 5sen per share. The
balance of its funds has been earmarked for expansion into property
development. Sentiment over the company is likely to track Focal closely as
they share a common shareholder.
6) Market - The recent outperformance in 2nd/3rd liners
could likely see significant profit taking in the coming week as prices have
gained significantly on very little news flow and also weakening underlying
tone. We advice to trim into strength take this opportunity to and rebalance
portfolio into companies with sustainable business models.
