FBM30 1573.45 +3.80 points (+0.24%) Volume 1,618mil Value 2,025mil
1) KLCI continued to outperform the regionals reaching a high of 1576.23 (+6.58pts) as investors were cautious after Federal Reserve chairman Ben Bernanke failed to deliver more measures to stimulate the economy. Speculations of China not easing its monetary policy further after PMI showed expansion at 51.0 also weighed on the region. Heavyweights were mixed with index supported by SIME+2.5% following its positive results. Broader market was weaker with losers outpacing advancers 506:309. Futures closed 1575.5 (2 points premium).
2) Heavyweights: SIME+2.48% RM9.93, PCHEM+0.75% RM6.75, BAT+1.72% RM53.10, DIGI+0.5% RM23.56, UEMLAND+1.3% RM2.34, GENTING-1.32% RM10.46,YTL-2.86% RM1.70, TENAGA-0.48% RM6.25
3) DBT: DAYA 20mil @ RM0.185 (1.6% PUC, 7.5% discount), DIJACOR 15mil @ RM1.20 (3.2% PUC, 26% discount)
4) Situationals:
SILVER-49% RM0.205: Share price fell to a low of 18sen after the company suspended three key executives with effect from Feb 24 including MD Datuk Jackson Tan Han Kook and two other key executives as company undertakes an internal inquiry into allegations of irregularities in the company's accounts which may amount to RM111.5mil. The company is also now classified as a PN1 and PN17 counter given that its auditors Crowe Horwath had expressed a disclaimer opinion on the group's latest audited accounts.
5) Perwaja -2% - 280,000,000 Warrants issued will be admitted to the Official List of Bursa Malaysia and the listing and quotation of the Warrants on the Main Market under the "Industrial Product" with effect from 9.00 a.m, Friday, 2 March 2012. The Stock Short Name, Stock Number and ISIN Code of the Warrants are "PERWAJA-WA", "5146WA" and "MYL5146WAW21" respectively.
Details of warrants: 1:1 basis with Strike px RM1, expiry 28 Feb2022 versus mother shr px of 70.5c. Lacklustre performance of the sector on back of slower demand and weaker prices will weigh on raw material prices. Margins will remain depressed. Perwaja is trying to address these issues by building its own concentration plant to be completed by 1Q12 and its pelletisation plant by 3Q12 for effective cost savings. Co is also in negotiation to secure an iron ore mining concession in Terengganu to transform Perwaja into a first fully integrated steel producer in Msia with secured raw material in place, keeping feedstk cost low boosting margins.
6) Mkt - lack of further catalyst after results reporting season may see KLCI trend sideways with intermittent interest in selected situational stks. Top trading ideas on stks which have retraced include: Coastal,DRB, Genting, MISC, Benalec, Affin.
