1) Trading activity was again fairly subdued, as the KLCI index drifted
sideways in choppy trading within a narrow 4 point range before closing
near day's high at 1585 pts. This on the back of lower regional markets,
which was down for the second straight day on concerns about growth
prospects of China & the US, prompting investors to trim risk exposure.
Region's weakness was exacerbated by news that Sun Hung Kai Properties
Ltd was suspended from trading as cable TV reported that it's
Co-chairmen were asked to assist in an investigation by the HK's
anti-graft body. Market volume was again dominated by lower liners
AGlobal +8.3%, Nicorp, Scomnet & Mtronic -4.5%. Market breath was again
negative as losers thumped gainers 462:260. Futures closed 1584 ( 1.44
pts disc). .
2) Heavyweight: CIMB +1.3%, Maybank-0.3%, Axiata unch, Digi +0.2%,
Genting +0.4%, Tenaga -0.9%, Sime-0.1%, IOIC -0.2%.
3) DBT: SEG 114.8m @ 1.71 (20.5% PUC - likely Cerahsar SB's block),
SEG-WA 59.8m @ 1.21 (32% of total issued), Genetec 20m @ 0.06 (70%
disc).
4) Situationals:
Bintai +10% : after Co announced that the Land Transport & Authority of
Singapore had awarded a contract to Samsung C&T Corp-Bintai Kindenko Pte
Ltd (60:40 JV) to supply & install electrical devices, tunnel
ventilation & environmental control system for a total contract value of
S$166m ( RM406m). Bintai Kindenko Ltd is a 70% subsidiary of Bintai. The
contract are due for completion by Dec 2016.
AirAsia +1.4% : Group CEO said Co is looking into South Korea & 2 other
Asian countries (possibly Myanmar & Vietnam) to set up new operations
as it widens it's reach to more countries in the Asia-Pacific. Co is
also targeting a May listing for AA Thailand & October for AA Indonesia,
with the listing of AA-X to follow the next year.
5) Crestbuilders: announced that it's wholly owned subsidiary
Crestbuilders International SB & it's JV partner Detik Utuh SB had
received a LOA from Sykt Prasarana Negara Bhd for a proposed joint
venture development of a parcel of prime commercial land located at Dang
Wangi LRT station measuring approximately 2.72 acres. A Joint Land
Development Agreement shall be executed whereby the JV shall undertake
to carry out the development & Prasarana as the landowner. The proposed
development is a mixed commercial development which comprises of a
retail mall, upscale residential suites, hotel & offices. Prasarana
shall be entitled to 21.2% of the GDV, estimated at RM220m ; +ve,
expected to contribute positively to the future earnings of
Crestbuilders.
6) Market - negative sentiment to persist with players continuing their liquadation while quater-end dressing activities will dominate towards the close.