FBM30 1500.91, +4.76 points (+0.32%), Volume 993.8mil, Value RM743.8mil
1) The KLCI managed to inch higher to close at the psychological level of 1,500 as it kicked off the last trading week on the back of an expected Santa rally driven by continued improving US economic data. Late closing action on some select heavyweights helped push the index to close day's high: UMW+5.8%, TM+4.2%, MHB+1.3%. Plantation (+1%) related stocks advanced despite palm oil futures dropped from one-month highs as investors lock-in gains: IOICORP+1.4%, KLK+1.6%, TWSPLNT+2.4%, RSAWIT+1.2%. Broader market however was mixed with gainers edging losers 378:341. Futures closed 1503.5 (3 points premium)
2) Heavyweights: TM+4.2% RM5.00, IOICORP+1.4% RM5.26, UMW+5.8% RM6.98, DIGI+1.1% RM3.78, PETGAS+1.8% RM14.40, KLK+1.6% RM22.56, GENTING+0.6% RM10.94, AMMB+0.7% RM5.97, AIRASIA+0.8% RM3.73, CIMB-0.6% RM7.05
3) DBT: MENANG 21mil @ RM0.20, TENAGA 14mil @ RM5.80, SUNWAY 7.1mil @ RM2.45
4) Situationals:
INGRESS+3.4% RM0.77: Stock reached its intra-day's high of RM0.79 (+6%) after the company said it secured a RM55 million power line project. Ingress said in an exchange filing a letter of intent for the project has been issued to an unincorporated joint venture between its two subsidiaries, Multi Discovery and Ramusa Engineering, for the project by Tenaga Nasional. The project is expected to start within 1Q of FY13, which comprise the establishment of PMU 132kV Kota Setar Applied Innovative Services Rehab and 132kV Lines Diversion at PMU Kota Setar and the proposed 275kV Bulk Supply to Bahru Stainless (Extension of 2 x 275kV Overhead Line Bays at PMU275/132/22 kV Cahaya Baru). This comes hot on the heels of a LOA from Proton worth RM84.8mil.
5) WCT
Has been awarded an Investment Certificate by the People's Committee of Ho Chi Minh City to undertake a residential and commercial mixed development on a piece of land measuring approximately 46,577 meter square located at the development corridor of Nguyen Van Linh Expressway at the New Urban Development Area of Saigon South, approximately 10km from the Central Business District of Ho Chi Minh City.
The Project is earmarked for the development of mid-high class residential apartments and commercial properties for the purposes of lease and/or sale. With a plot ratio of 6, the Project is planned for commercial shoplots and condominium units complete with a garden and full-fledged facilities for modern living.
The duration of the Project is fifty (50) years from the date of receipt of the Investment Certificate.
Concurrent with the issuance and award of the Investment Certificate, the People's Committee of HCMC has also approved the establishment of a limited liability company namely, WCT-DPN Company Limited ("WCT-DPN"), a 70%-owned subsidiary of the Company. The remaining 30% equity of WCT-DPN will be held by Southern Land Corporation ("SLC"), a joint stock company duly established and existing under the Laws of the Socialist Republic of Vietnam on 26 March 2001.
WCT-DPN's initial charter capital is USD25.15m. Its principal business activity is the development and management of the Project.
Neutral as most Malaysian developers that have ventured into property development in Vietnam have yet to show any significant contribution to their bottom lines. The market's focus will remain on order book replenishment as the company significantly lags behind its original guidance of RM2bn new contracts.
6) Market - Investors will continue to seek guidance from the US market to lead global equities higher as hopes of a stronger than expected recovery in the US may counter the slowdown in Europe.