FBM30 1577.62 +4.02 points (+0.26%) Volume 2,139mil Value 1,764mil
1) KLCI was marginally higher despite a more cautious regionals which fell following China government’s decision to raise fuel prices which could further put a dent into China’s weaning growth. Index reached a high of 1579.88 (+6.28pts) but pared its gains over the day before late buying support of core blues led by IOICORP, PPB and AMMB saw index recover 3pts at close. Broader market remained negative as losers outpace gainers 431:314. Futures closed 1575.5 (2 points discount).
2) Heavyweights: IOICORP+0.95% RM5.29, TENAGA+0.77% RM6.54, MMC+5.36% RM2.95, GENTING+0.56% RM10.70, AMMB+0.8% RM6.23, PETGAS+0.49% RM16.48, PCHEM-0.45% RM6.71
3) DBT: RPB 13mil @ RM0.36 (1.5% PUC, 11% discount), KEURO 7mil @ RM1.20
4) Situationals:
MMC+5.4% (RM2.95)/GAMUDA+3.30% (RM3.74): In an e- mailed statement from MRT today, MRT has awarded a 8.2 billion-ringgit tunneling contract to a joint venture between MMC Corp. and Gamuda Bhd. The single largest package in the mass rail network project was awarded to the companies following a competitive bid with four other tenderers, Mass Rapid Transit, or MRT, said in an e- mailed statement today.
IGB+3.2% (RM2.89): Share price was firmer after news reported IGB’s retail REIT valuation could reach RM4.6bn with a capitalization rate of 5.3% exceeding management’s earlier expectation of around RM4bn. IPO is expected to come in 2H2012.
5) KLK: announced that it has entered into an unconditional SPA with HK based Khuan Choo International Ltd to dispose off 100% of it’s Global Crabtree & Evelyn business for USD155m ( RM465m). The proposed disposal is expected to be completed within 3 months unless extended in accordance with the SPA. Disposal is expected to result in a disposal gain to the KLK group of approximately USD 41m for FY09/2012 ( translating to about 11.5s per share); Neutral to +ve on news. The proposed disposal will allow KLK to exit from a non-core business and will enable KLK to focus on & harness the potential of it’s core plantations & oleochemical business where the returns are significantly higher. Retailing currently contributed about 10% of total revenue & 12% of operating profit for Q1 FY2012.
6) Mkt: barring external negative developments, especially on fears of sharper-than-expected slowdown in China & global growth, the local bourse is expected to maintain its consolidation range of KLCI 1560-1590pts until the month end.
