FBM30 1574.83 -15.08 points (-0.95%) Volume 1,743mil Value 2,030mil
1) KLCI fell inline with the regionals as investors were cautious with renewed uncertainty of Greece debt swap while Australia was the latest to report a weaker than expected 4Q GDP numbers mounting worries about slowing global economies. Sentiment in the local bourse was also affected by weaker Malaysia exports which grew at the slowest pace in 15 months in January. Penny stocks dominated the volume list with gains seen in NICORP+26%, HWGB+9%, SILVER+24%. Broader market was negative with losers outnumbering advancers 476:283. Futures closed 1575.5 (1 point premium).
2) Heavyweights: SIME-1.90% RM9.80, CIMB-1.48% RM7.31, GENTING-1.65% RM10.74, MAYBANK-0.91% RM8.71, YTL-3.43% RM1.69, PCHEM-1.16% RM6.84, AXIATA-0.78% RM5.12, DIGI-0.97% RM4.07
3) DBT: JETSON 1.5mil @ RM1.48 (2.5% PUC), CSL 1.2mil @ RM1.20 (12.4% PUC, 9% premium)
4) Situationals:
DIJACOR-11% RM1.49: DIJACOR was among the actively traded stock but saw its share price weaker after it resumed trading today as Group CEO, Tan Sri Danny Tan Chee Sing, plans to inject his privately held assets valued at RM1.1bn. Company had also proposed a rights issue and fund raising exercise of up to RM500mil for CAPEX and working capital.
5) Plantation: Palm oil may rally to RM4000/tonnes by the end of June as global edible oil supplies tighten before retreating in the second half as output increase, according to Dorab Mistry, director of Godrej International Ltd. He was restating an earlier prediction, giving the forecast at an industry conference in KL today. Benchmark CPO closed at RM3,266,+0.7%. Earlier USDA has forecast that inventories of global edible oil will decline to less than 30 days of consumption, the lowest since 1977.
6) Power: 1MBD said today that it has signed an agreement to buy independent power producer Tanjung Energy Holdings for RM8.5bn. Tanjung Energy Holdings, controlled Ananda Krishnan via Tanjung Plc, owns 8 power plants & has interest in 5 power plants in 6 countries, including Egypt, Pakistan & the UAE with a total net generating capacity of 3951 MW. The transaction is subject to customary financing & regulatory approval ; Expected, after earlier media speculations. The sale of Tanjung Energy is the second major divestment by Ananda. In August 2011,he sold Tanjung's gaming business, Pan Malaysian Pool SB, to a group of Malaysian businessmen for an undisclosed amount.
7) Market - with investors' heightened sensitivity towards global growth lately, a good US jobs data on Friday is critical for markets to arrest this correction. In addition, an acceptable resolution the the Greek's debt-swap deal by March 8 deadline is paramount to ensure no further contagion to sovereign debts of peripheral EU countries.