FBMKLCI
1885.72 +4.24pts (+0.23%)
Volume 1.512b Value 2.057b
1) The KLCI traded mostly in negative territory before
closing 4 pts above parity echoing US market which close positive overnight. In
the regional market, bourses were flat before the weekend as investors await
for important China manufacturing as well as US GDP data on Monday; HSI +0.11%,
SHCOMP +0.15%, NIKKEI -0.08%. In the local scene, the underweight CONSTRUCTION
index posted strong gains today after buying interests boosted heavyweights
such as WCT +2.29%, GAMUDA +0.44%, IJM +0.29. Market breath was barely positive
as gainers was neck to neck with losers today 420 : 405. Futures closed at
1882.5 (3points discount)
2) Heavyweights : SKPETRO +3.23% RM4.47, MISC +2.83%
RM6.53, IHH +2.07%, GENM +1.66% RM4.28, TENAGA +0.50% RM11.88, CIMB +0.41%
RM7.33, PBBANK -0.58% RM20.24, ASTRO -3.42% RM3.38
3) DBT : TUNEINS 85mil @ RM2.20 (11.30% PUC @5.2%
discount), MEDAINC 1mil @ RM0.60 (17.3% discount).
4) Situational:-
SKPETRO +3.23%
RM4.47 - SKPETRO announced EPCIC contract wins for (i) 3 remote wellhead
platforms in the North Malay Basin by Hess Exploration and Production Malaysia
B.V. and; (ii) 4 wellhead platforms and associated subsea pipelines for JDA
Block B-17 and B17-01 Field Phase 3 Development Project by Carigali-PTTEPI
Operating Company Sdn Bhd yesterday. The 3 remote wellhead platforms are for a
period of c.25 months; whilst the 4 wellhead platforms are for a period of c.39
months. The contracts are valued at c. USD415m (RM1.3b).
5) MRCB
MRCB announced that the Company together with Nusa
Gapurna Development (NGD), have on 20 June 2014 entered into a settlement
agreement with PKNS to resolve all disputes, conflicts, differences, claims and
complaints against each other arising directly or indirectly from the NGD's
Share Sale Agreement (SSA), the Suit and the pending appeals in the Court of
Appeal and all ancillary issues in connection therewith (“Settlement Agreement”).
In conjunction with the Settlement Agreement, MRCB has
also entered into a share sale agreement with PKNS for the acquisition of the
30% equity interest in P.J Sentral held by PKNS (“Proposed Acquisition of 30%
of P.J Sentral”) for a cash consideration of RM85,300,000 (“PKNS SSA”). The
shareholders of MRCB had approved the Proposed Acquisition of 30% of P.J
Sentral at the EGM held on 20 June 2013 and the PKNS SSA contains amended terms
as compared to the terms of the Proposed Acquisition of 30% of P.J Sentral
which were tabled to the shareholders of MRCB in connection with such approval.
Simultaneous with the execution of the Settlement
Agreement, P.J Sentral and PKNS have entered into a development agreement for
the purposes of granting development rights to PKNS over the development of a
building identified as Tower 2 which is to be constructed/developed on a parcel
of development land held by P.J Sentral (“Development Rights”) at an agreed
value of RM91,119,462.27.
The resolution of the purchase of 100% stake in PJ
Sentral is highly positive as MRCB can
now finalise its master plan for this catalytic project with an estimated GDV
of c.RM6b. Expect a rerating of the stock.
6) Market: is likely to be well supported next week ahead
of the half-year closing.
