FBM30 1562.82, +1.16 points (+0.07%), Volume 2,661mil, Value 2,119mil
1) Despite the welcomed news of the Greek Parliament had passing the unpopular austerity bill to secure a second bailout package, the KLCI remained subdued which saw lackluster trading with index remaining in a tight 5 points range before closing marginally higher. Plantation names led the gainers list as KLK+2%, UTDPLNT+2.3%, HSPLNT+2.4% while profit taking dominated proceedings as recent out performers were sold down: DRBHCOM-3.7%, NICORP-16.4%, LONBISC+4.3%. Market breadth turned negative with losers thumping gainers 517:364. Futures closed 1558.5 (4 points discount)
2) Heavyweights: GENTING+1.9% RM10.50, TENAGA+1.3% RM6.19, KLK+2% RM25.98, YTL+2.7% RM1.52, BAT+2.4% RM51.50, IOICORP+0.5% RM5.50, PETGAS+0.9% RM16.60, HLBANK+0.5% RM11.56, CIMB-0.7% RM7.16, SIME-0.6% RM9.61.
3) DBT: TWRREIT 2.5mil @ RM1.36, COMPUGT 1.8mil @ RM0.13.
4) Situationals:
TIME+15.7% RM0.405: Share price surged in active trade on news of a potential stake sale by major shareholder, Khazanah Nasional; with three potential bidders for its 45% stake, the Edge weekly reported. The three bidders are Zamcorp, MM Tech Corp and "an entity linked to prominent businessman" Syed Mokhtar Al-Bukhary, the paper said citing an unnamed source.
MBSB+5.8% RM2.36: Local news tabloid speculated that the company's biggest shareholder, Employees Provident Fund is considering buying out the mortgage financing provider.
5) FELDA GLOBAL VENTURES
At a briefing to Felda personnel today, the Government is expecting the market capitalization to touch RM21bn when it list on May 10. The government also intends to pay pre and post listing dividends. Koperasi Permodalan Felda (KPF) will be the single largest shareholder with a 37% stake. The list of other government linked funds including PNB & EPF stakes has also been finalized.
Felda Global has also narrowed down its choice of global partners to two companies to help diversify the group and open more markets. A final decision will be made once negotiations are completed.
+ve as the listing will help refocus interest back on the plantation sector which has been in a consolidation phase.
6) Market - The KLCI could continue its consolidation phase after the record volumes traded last week. We expect it to remain in a tight range of between 1560-1540 pts.