FBM30 1521.99, +0.26 points (+0.02%), Volume 1,858mil, Value 1,872mil
1) KLCI ended mixed trading in a 5 points range as market was sluggish despite the positive region which rose on positive US data and speculations slowing China export data could encourage monetary easing policies. Malaysia's industrial production growth was also lower than estimates as manufacturing growth slows. Construction+1.2% outperformed in anticipation of jobs being awarded from the ETP program. Market breadth was positive with advancers outpacing decliners 416:330. Futures closed 1527 (5 points premium).
2) Heavyweights: DIGI+1.04% RM3.90, PETGAS+1.59% RM15.34, KLK+1.06% RM24.84, TM+1.03% RM4.91, PCHEM+0.47% RM6.36, GENTING-2.15% RM10.90, GENM-0.77% RM3.88, MHB-1.91% RM5.65
3) DBT: SCOMI 16.3mil @ RM0.15 (46% discount), BJCORP 12mil @ RM0.94 (10.5% discount),
4) Situationals:
TAKASO+2.08% RM0.245: TAKASO topped volume today with share price reaching a high of RM0.28 after news reported that company will be acquiring Kayumas Plantation PNG Ltd which has a timber license and concession in a bid to diversify its business. The company holds the rights to a net loggable area of 40,000ha of timber possibly worth up to RM500mil with length of extraction up to 9 years.
MBSB+4.12% RM2.02: Bank Negara has granted permission for MBSB to participate in its Central Credit Reference Information System (CCRIS) effective this month. This information is collected by the central bank's credit bureau from participating lending institutions to assit them in making informed decisions on credit applicants.
GAMUDA+3.52% RM3.53: Gamuda in response to news reports confirmed they have been invited by China Railway Construction corp to be its local partner in a group bidding for the Gemas-Johor Bahru railway project that is worth RM8bil.
5) SAPURACREST
Announced that SapuraAcergy Sdn Bhd has been awarded a contract for a subsea construction project, offshore Vietnam. SASB is a joint venture company equally owned by SapuraCrest Petroleum Berhad and Subsea 7 S.A. The scope of work requires the installation of 28km of 12" diameter pipeline, a 28km umbilical, Pipeline End Terminations and Subsea Isolation Valve , Structures, spools and pre-commissioning.
The value of the Contract awarded is approximately USD100 million, with the offshore work expected to be performed in mid 2012.
+ve the merger exercise with Kencana expected to be finalized by the 1Q this year will be the major re rating catalyst for both companies.
6) Market - Current bullish trend to continue with situationals and 2nd liners continuing to take center stage in the run up to CNY.
