FBM30 1582.53 +4.91 points (+0.31%) Volume 3,593mil Value 1,793mil
1) KLCI edged higher recovering from morning low of 1573.17 (-4.45pts) as index was supported by selected buying of core blues including IOICORP+1.7% and AXIATA+1%. Regional was marginally lower as concerns about China’s slowing economy is being offset by strength of US economy. Volume surpassed 3bil as penny stocks was active led by MTRONIC+132%, AGLOBAL+35%, INGENS+27%. Broader market was marginally positive as gainers edged losers 384:339. Futures closed 1586.5 (4 points premium).
2) Heavyweights: IOICORP+1.7% RM5.38, AXIATA+0.78% RM5.15, TENAGA+0.6% RM6.58, YTLPOWR+2.78% RM1.85, PPB+1.33% RM16.78, BAT+1.49% RM53.20, PCHEM+0.45% RM6.74, CIMB-0.26% RM7.63
3) DBT: CNOUHUA 22mil @ RM0.22 (3.3% PUC, 7% premium), DBE 22.5mil @ RM0.10 (3.3% PUC), DIALOG 5mil @ RM2.30
4) Situationals:
CYPARK+2.67% RM1.92: Share price was firmer after company announced its 8 MW Solar Park in Negri Sembilan has been successfully completed on 31 Dec 2011. Company will start exporting and selling its energy to TNB grid at 95 sen per kilowatt on 28 March 2012. The solar park will add another 5MW by the end of the year. Cypark expects to generate annual turnover of about RM45 million from year 2013 onwards.
5) Texchem: announced that it has entered into a conditional SPA with Fumakilla Ltd of Japan for the sale of 70% of Technopia Sdn Bhd & 70% of PT Technopia Jakarta (PTTJ) for USD 36m & USD 6.4m cash respectively. Both companies are involved in the business of manufacturing and trading of insecticide products. Following the sale, Texchem will still hold the remaining 30% in the companies. By way of a Put Option Agreement, Fumakilla has granted Texchem a put option on the remaining shares, exercisable at any time between 1st July 2018 & 30 Sept 2018, the price of which will be based on a formula set out in the agreement; +ve, the proposed transaction will enable texchem to partially realise the value of it’s investment & enable it to further reinforce it’s existing other businesses. Co expects to net a gain of approximately RM68m from the disposal. Further, the JV with Fumakilla will enable Technopia & PTTJ to tap into Fumakilla’s know how & technology in the advanced and high end household insecticide products as the Japan market for such products are ahead of the Asean market.
6) Market: maintain existing range trade as regional & commodity markets pay close attention to the HSBC Flash China Manufacturing PMI tomorrow for early leads on the state of China economy.
1) KLCI edged higher recovering from morning low of 1573.17 (-4.45pts) as index was supported by selected buying of core blues including IOICORP+1.7% and AXIATA+1%. Regional was marginally lower as concerns about China’s slowing economy is being offset by strength of US economy. Volume surpassed 3bil as penny stocks was active led by MTRONIC+132%, AGLOBAL+35%, INGENS+27%. Broader market was marginally positive as gainers edged losers 384:339. Futures closed 1586.5 (4 points premium).
2) Heavyweights: IOICORP+1.7% RM5.38, AXIATA+0.78% RM5.15, TENAGA+0.6% RM6.58, YTLPOWR+2.78% RM1.85, PPB+1.33% RM16.78, BAT+1.49% RM53.20, PCHEM+0.45% RM6.74, CIMB-0.26% RM7.63
3) DBT: CNOUHUA 22mil @ RM0.22 (3.3% PUC, 7% premium), DBE 22.5mil @ RM0.10 (3.3% PUC), DIALOG 5mil @ RM2.30
4) Situationals:
CYPARK+2.67% RM1.92: Share price was firmer after company announced its 8 MW Solar Park in Negri Sembilan has been successfully completed on 31 Dec 2011. Company will start exporting and selling its energy to TNB grid at 95 sen per kilowatt on 28 March 2012. The solar park will add another 5MW by the end of the year. Cypark expects to generate annual turnover of about RM45 million from year 2013 onwards.
5) Texchem: announced that it has entered into a conditional SPA with Fumakilla Ltd of Japan for the sale of 70% of Technopia Sdn Bhd & 70% of PT Technopia Jakarta (PTTJ) for USD 36m & USD 6.4m cash respectively. Both companies are involved in the business of manufacturing and trading of insecticide products. Following the sale, Texchem will still hold the remaining 30% in the companies. By way of a Put Option Agreement, Fumakilla has granted Texchem a put option on the remaining shares, exercisable at any time between 1st July 2018 & 30 Sept 2018, the price of which will be based on a formula set out in the agreement; +ve, the proposed transaction will enable texchem to partially realise the value of it’s investment & enable it to further reinforce it’s existing other businesses. Co expects to net a gain of approximately RM68m from the disposal. Further, the JV with Fumakilla will enable Technopia & PTTJ to tap into Fumakilla’s know how & technology in the advanced and high end household insecticide products as the Japan market for such products are ahead of the Asean market.
6) Market: maintain existing range trade as regional & commodity markets pay close attention to the HSBC Flash China Manufacturing PMI tomorrow for early leads on the state of China economy.
