FBM30 1504.22, -9.32 points (-0.62%), Volume 1,658.8mil, Value 1,527.5mil
1) The KLCI reversed its earlier 11 pts gain and drifted lower throughout the day to close almost at intra-day's lows after the cautious statement by China's Premier on an expected relatively difficult quarter ahead for businesses. Weighing down the index were banking heavyweights: CIMB-1.9%, MAYBANK-0.8%, AMMB-1%. Properties (-1.4%) was the main loser with UEMLAND-6.3%, IGB-3%, MAHSING-7%, UOADEV-2%, after analyst downgraded the sector on concern economic growth will be slow this year. Market breadth was negative with losers edging gainers 404:387. Futures closed 1505 (1 point premium).
2) Heavyweights: CIMB-1.9% RM7.10, AXIATA-2.2% RM4.89, MAYBANK-0.8% RM8.27, GENTING-0.9% RM11.14, SIME-0.5% RM9.07, UEMLAND-6.3% RM2.23, AMMB-1% RM5.74, PETDAG-2.5% RM17.00, KLK+2.2% RM23.50, TENAGA+0.3% RM5.97.
3) DBT: ASUPREM 3.5mil @ RM0.205, JTIASA 2mil @ RM6.80
4) Situationals:
SEACERA+9.9% RM0.72: Company will kick-start 2012 with a 500-acre mixed development project in Ulu Langat, Selangor with GDV of at least RM2bn that will span over 10 to 15 years, its MD said. Of the 500 acres, Seacera owns 113 acres, which it bought from Duta Skyline Sdn Bhd for about RM27mil or RM5.50/sq ft. The remaining land is currently owned on a 78:22 JV basis with Duta Skyline, with the larger portion by Seacera.
5) Priceworth
Announce that its wholly-owned subsidiary, Ligreen (SI) Limited has on 29 December 2011 entered into a Logging Management and Technology Agreement with Success Company Limited whereby Ligreen (SI) Limited is appointed as the Contractor to carry out logging activities within the Registered Land, Lot 9 of LR 598, Parcel No. 098-003-2 and Lot 10 of LR 598, Parcel No. 098-003-03 on Kolombangara Island, Western Province, Solomon Islands in accordance with the terms and conditions of the Agreement.
As the Contractor, it will carry out the logging activities within the Concession Area of the total land size of approximately 1,053 hectares. The Licensee and Contractor shall jointly market the logs harvested from the Concession Area.
In consideration of the logging activities to be carried out by the Contractor, the Contractor shall receive 55% of the declared sales contract from the Licensee.
The Concession Area is estimated to have a log volume of approximately 60,000m3 per annum which can be processed into sawn timber, plywood and downstream wood products. The logs will be partly utilized for the Group's internal consumption and for export purpose.
6) Market - Consolidation above the 1500pts levels after the recent sharp run up but we remain bullish on the short term and continue to advocate trading on dips.