FBM30 1561.30, -4.75 points (-0.3%), Volume 2,309.6mil, Value 2,145.9mil
1) KLCI bucked the regional trend as it trade sideways in the negative territory despite improved sentiment in regional bourses as China pledged to help resolve Europe's debt crisis. On the domestic front, selling in selective banks and plantation big caps weighed down the index (IOICORP-1.1%, HLBANK-0.7%, HLFG-0.3%, KLK-0.3%) ahead of the release of the 4Q GDP number by BNM later today. Market breadth improved as recently sold down 2nd liners rebounded as gainers led losers 433:385. Futures closed 1560.5 (1 point discount).
2) Heavyweights: IOICORP-1.1% RM5.43, PETDAG-3% RM18.22, SIME-0.3% RM9.61, PCHEM-0.6% RM6.94, YTLPOWR-2.1% RM1.86, MAXIS-0.7% RM5.76, PETGAS-0.6% RM16.64, DIGI+1.5% RM4.16, BAT+1.4% RM52.48.
3) DBT: SUNREIT 20mil @ RM1.29, SERSOL 8mil @ RM0.35, NICORP 7.6mil @ RM0.30.
4) Situationals:
MULPHA +1.1% RM0.465: Shares was suspended this morning 9.00 am to 10.00 am due to the company wish to announce that it expects to record a one-off gain of about RM57.35mil from the sale of its 75% stake in Hong Kong listed Manta Holdings Company Ltd for RM111.15mil. Mulpha said its unit Jumbo Hill Group Ltd had on Tuesday entered into a sale and purchase agreement with Eagle Legend International Holdings Ltd to dispose of the stake, comprising of 150mil shares at HK$1.90/share. The proposed disposal enables Mulpha to realise its investment in Manta at an attractive valuation, the proceeds of which may be redeployed to the repayment of bank borrowings and/or working capital requirements.
5) CBIP - announced the acquisition of two companies
a) 94% of the issued and paid-up share capital in PT Berkala Maju Bersama for a total purchase price of up to Rp26,258,600,000 or equivalent to RM9,054,690
b) 94% of the issued and paid-up share capital in PT Jaya Jadi Utama for a total purchase price of up to Rp20,059,000,000 or equivalent toRM6,916,897.
Both companies are principally involved in the plantation sector but yet to commence its development activity. The total area granted is approximately 32812 hec, consisting of 25488 of Convertible Production Forest and 7,324 of other purpose area.
The purchase price was arrived at valuing the other purpose area at RM621/hec and RM448/hec for the areas categorized as Convertible Production Forest.
The Acquisitions provide an opportunity for CBIPH Group to further expand its plantation business. The additional land banks pursuant to the Acquisitions would enable CBIPH Group to develop its existing plantation business into a sizable plantation segment and provide CBIPH Group with further sustainable long term earnings.
6) Market - Sentiment on the KLCI could improve with better than expected 4Q GDP numbers. The country achieved a 5.2% YOY growth in the 4Q vs 4.8% (f). Full year growth came in at 7.2%. Focus to remain on situationals with the KLCI maintaining the current range of 1540pts to 1568pts levels.