1) KLCI ended April on a positive note, as worries on
effect of weekend rally dissipates. Index rose to a high of 1574.49 (+6.69pts)
before closing offbest on news of Spain falling into another recession while
S&P downgraded spanish banks. Investors stayed away in a holiday shorten
trading week with volume falling below 1bil. Broader market remained negative
with losers leading gainers 388:297. Futures closed 1565.5 (5 points discount).
2) Heavyweights: CIMB+1.09% RM7.41, DIGI+0.75% RM4.04,
GENM+1.32% RM3.84, BAT+1.35% RM55.54, IOICORP+0.39% RM5.22, PETGAS-0.95%
RM16.78, YTL-1.22% RM1.62, AMMB-0.64% RM6.26
3) DBT: RSAWIT 70mil @ RM.935 (5.3% PUC, 13.4% discount),
ARMADA 50mil @ RM3.95, SUNREIT 6mil @ RM1.27
4) Situationals:
OSK+10% RM1.71, RHB+1.66% RM7.37: RHB and OSK has
received notification from Bank Negara Malaysia that the Minister of Finance
has granted approval for the Proposed Merger under the Banking and Financial Institutions Act,
1989. The terms and conditions of the
Proposed Merger will be announced subject to the execution of the conditional
share purchase agreement for the Proposed Merger.
KNM-1.18% RM0.835: The Board of KNM announce that it had
approved for the company to undertake a proposed fund raising exercise
involving a Rights Issuance of RM200 million. The definitive terms for the
Rights Issue will be determined by the board of the company subject to the
advice of the company's corporate advisors to be appointed in due course. KNM
will be seeking its shareholders' approval for the Proposed Rights Issue at a
general meeting.
Its wholly owned subsidiary, Kencana HL Sdn. Bhd. in
consortium with Shinryo (M) Sdn Bhd, signed a contract with Petronas Gas Berhad
to provide engineering, procurement, construction and commissioning of two Cogeneration plants, having combined
capacity of 50MW of electrical power and steam capacity of 120 ton per hour.
The Scope of Works of this Contract in general includes project management,
engineering, procurement, construction and installation of steel structures,
piping and equipment as well as civil works. The portion of the contract value
for Kencana HL is estimated at RM35 million. The Contract is expected to be
fully completed by first quarter of calendar year 2014.
Both Kencana and SapuraCrest will be suspended till the
21 May to facilitate the merger of both companies. The merged entity will be
the largest integrated O&G service provider and have a market cap in excess
of RM10bn and an order book of over RM13bn. Expect a placement play upon
requotation.
6) Market - global uncertainty coupled with election
concerns domestically will continue to see investors remained side lined.
Immediate direction to be dictated by US ISM numbers and
consumer spending report.
