Market Roundup | 23 March 2012

FBM30 1585.83 +2.59 points (+0.16%) Volume 1,998mil Value 1,406mil

1) KLCI managed to stay positive for its 5^th consecutive days supported by gain in GENTING+2% while regionals were sold down (HSI-1% and SHCOMP-1%) on concern of slowing global economy, following weaker PMI numbers in China and Eurozone overnight. Agricultural Bank of China’s unexpected drop in profit also weighed on market sentiment. Plantation+0.4% was firmer as CPO future+2% on possible decline in production. Broader market was negative as decliners doubled advancers 520:282. Futures closed 1588 (2 points premium).      

2) Heavyweights: GENTING+2.23% RM11.00, IOICORP+1.70% RM5.38, PETGAS+1.09% RM16.70, YTL+1.14% RM1.77, CIMB-0.39% RM7.58, AXIATA-0.39% RM5.12, TENAGA-0.45% RM6.68, DIGI-0.51% RM3.92

3) DBT: INARI 6mil @ RM0.365 (1.8% PUC), NAGAMAS 3mil @ RM0.69 (5.9% PUC, 9% discount), APM 2.2mil @ RM5.05 (2% PUC, 8.8% premium)

4) Situationals:

LINGUI+1.97% RM1.55/GNEALY-0.55% RM7.18: The Samling group has increased its stakes in Lingui to 67.23% and GNEALY to 53.68% under its proposed privatization exercise. Samling will acquire LINGUI at RM1.63/share and GNEALY at RM7.50/share.

GENTING+2.23% RM11.00: Two Malaysian operators won the first casino junket licenses in Singapore. The permits are valid for one year and the two so-called international marketing agents will only operate at Resorts World Sentosa run by Genting Singapore, according to the CRA’s website.

5) KPJ

KPJ has accepted the Offer from major shareholder Jcorp to acquire 80% in PT KPJ Medika for a total cash consideration of RM15,840,000.00. PT KPJ Medika owns and operates a private specialist hospital known as Rumah Sakit Medika Permata Hijau in Jakarta, Indonesia with 92 beds capacity.

PT KPJ Medika registered an audited profit after tax of RM12,539,519.00 and audited net assets of RM21,746,224.00 for the financial year ending 31 December 2011. Also included in the audited profit is gain on disposal of PT KPJ Medika land and building to Al-„Aqar Healthcare REIT amounting to RM10,263,864.00. KPJ has been managing PT KPJ Medika for 15 years. In view of the profitability of PT KPJ Medika for the last 15 years, KPJ foresees that the Proposed Acquisition as a lucrative investment and further for expansion in the Indonesian market.

6) Market – Choppy conditions to continue. Track European bond rates closely as they appear again to be edging uncomfortably higher.