1) The KLCI opened firmer, but
drifted south after the first hour of trading as investors mainly remained
sidelined on the lack of leads in the market, coupled with the on-going
concerns of the general election.
The lower trend was also in
tandem with the region, with major Asean markets pulling back after sizeable
gains in the previous session & as risk appetite deteriorated slightly
after the Bernanke fuelled bounce earlier in the week. Construction -1.42% was
the major loser - Gamuda-1.6%, IJM-1.4%, Mudajaya-1.7%, WCT-2%. Losers thumped
gainers 2:1. Futures closed 1585.5 ( 1.75 pts premium).
2) Heavyweights: CIMB-1.6%, Maybank -0.2%, Axiata +0.2%, Genting unch, PChem -0.2%, Tenaga -1.1%, TM+0.2%.
3) DBT: RPB 29m @ 0.37 (10%
disc), BJToto 16.2m @ 4.35
4) Situationals:
Scomnet -42% : after Co
announced that the PM's son Mohd Nazifuddin Mohd Najib indicated that he will
not be pursuing the option to purchase the 18.6% stake in the company at 22.5s.
IGB -2.5% : after it signed a non-binding MOU with Selia Pantai SB for the proposed establishment of a 70:30 JV for the purpose of acquiring & developing 3 vacant parcels of leasehold land in Mukim Plentong, Johor Bahru into a retail mall and/or mixed development. The MOU shall remain valid for 30 days except if mutually agreed in writing by the parties.
Selia Pantai is a public
private smart partnership between the Selia Group & the Johor state
government.
5) YTL CORP
The utilities and construction
group has identified targets and may make a purchase in the second or third
quarter with its RM13bn war chest according to its MD. It no suitable asset is identified, the
company could also increase its dividend payout. Dividend could possibly double
from 2sen last FYE to 4sen. The acquisition could be overseas, which will mark
its first foray offshore for the past three years. Indications that the oversea
venture could be in Asia due to the perceived undervalued currencies vs the USD
and generally better outlook.
6) Market - Sharp sell off
especially in 2nd liners could linked to talks that BURSA is mulling
restrictions on selected counters that have seen sharp movements on heavy
volume trading recently. We feel the selling has spilled over into quality mid
caps sending them down to attractive levels. Trading Buy
