Thursday, December 29, 2011

Market Roundup 291211

FBM30 1506.69, +2.58 points (+0.17%), Volume 1,588.8mil, Value 1,163mil       

1) KLCI continued its recent upward trend on thin volumes despite weaker markets in the US and Europe overnight. Tech (+1.7%) stocks led the gainers with UNISEM+6.7%, MPI+3.7%, NOTION+5.8%, ENG+4.6% while select lower liners hogged the limelight with gains on active trade: SANICHI+16.7%, MULPHA+2.7%, KNM+5.8%. Market breadth was healthy with gainers doubling losers 492:254. Futures closed 1510 (4 points premium).

2) Heavyweights: AXIATA+1.2% RM5.05, CIMB+0.8% RM7.16, PBBANK+0.5% RM13.18, PETGAS+0.7% RM15.20, RHBCAP+2.4% RM7.30, PPB+0.7% RM17.12, BAT+0.8% RM49.60, KLK+0.4% RM22.68, YTL-2% RM1.48, MAYBANK-0.2% RM8.32.

3) DBT: BPURI 2.5mil @ RM0.84, MENANG 1.7mil @ RM0.20

4) Situationals: 
BOXPAK-9.7% RM2.23: Share price fell as low as RM2.21 (-10.5%) in the afternoon session, erasing early gains as the company denied a news report of a planned buyout by major shareholder Kian Joo Can Factory. The company says in an exchange filing it isn't aware of any formal discussions and hasn't appointed any investment bank for the purported buyout. Kian Joo also denied the news report in a separate filing. KIANJOO-1.42% RM2.09.

TCUBES-14.3% RM0.18: Shares fell in active trade after the company revealed that its accumulated losses for the FY ended March 31, 2011 was RM17.24mil and not RM7.3mil as stated in its Annual Report. Tricubes said there were typo errors on the accumulated losses as stated in pages 49, 61, and 98 of the 2011 Annual Report. The announcement followed an audit of its 2011 Annual Report which was submitted to Bursa on Sept 7.

5) KFC/QSR
The President of the Malay Chamber of Commerce (M) has come out to say that they would make a counter offer of RM6.90/share for the controlling stake in QSR. He further commented that the offer letter would be presented either later today or tomorrow. Recall that Massive Equity a SPV JV between Johor Corp (51%) and CVC Capital Partners Ltd (49%) had earlier tabled an offer for KFC (RM4) and QSR (RM6.80) which was duly accepted by the respective board of directors. The Malay Chambers of Commerce had earlier objected to this sale as it could result in both companies ending up in the hands of foreigners.

The offer by Massive Equity is still pending an EGM for minority approvals.

6) Market - Maintain short term bullish trend which could last into late Jan for the traditional CNY rally.