Market Roundup | 9 April 2012

FBM30 1591.28 -7.59 points (-0.47%) Volume 1,076mil Value 1,077mil

1)KLCI was lower as recent rally encouraged investors to lock in profits following weaker than expected US job report which cast doubt on the strength of US recovery. China inflation also came in higher than expected prompting speculation that China may delay easing of monetary policy. Market breadth was negative as decliners doubled gainers 468:238. Futures closed 1586 (5 points discount).      

2) Heavyweights: PBBANK-0.87% RM13.68, YTL-3.35% RM1.73, MAYBANK-0.45% RM8.84, GENTING-0.73% RM10.84, TENAGA-0.77% RM6.44, IOICORP-0.56% RM5.29, DIGI-0.51% RM3.90, AMMB-0.79% RM6.30

3) DBT: ALAQAR 2.3mil @ RM1.19

4) Situationals:

EITA+7.89% RM0.82: EITA Resources Berhad made an impressive debut on the main market today reaching a high of RM0.93 with 38mil shares traded. EITA is in the business of marketing and distribution of E&E components and equipment, design and manufacture of Elevators and Busduct systems. IPO saw the issuance of 23mil new shares at RM0.76. EITA has a dividend policy of at least 30% of its annual earnings.

GUANCHG-0.36% RM2.79: Guan Chong Bhd is seeking secondary listing on the main board of SGX to facilitate its access to the capital market in Singapore. The proposed corporate exercise to be completed by 2H2012 would include 1) Public offering of up to 62mil shares or 19.6% enlarged capital (31mil new & 31mil vendor sale) 2) 1 for 2 bonus issue to the enlarged base.

5) UEMLAND

UEMLAND entered into a conditional sale and purchase agreement with TBV (a wholly-owned subsidiary of

Khazanah Nasional Berhad in relation to the Proposed Acquisition of freehold land in Pulai, District of Johor Bahru measuring approximately 122.28 acres or 5,326,416.61 square feet (“sqft”), for a total cash consideration of

RM93,212,290.71 or RM17.50 per sqft. currently classified as agricultural land although it is designated for residential development. The Land is strategically located in Nusajaya and is approximately 40.0 kilometres to the south-west of Johor Bahru City Centre. Specifically, the Land is adjacent to Kota Iskandar (the Johor State Government Administrative Centre) and ULHB’s existing prime development in Nusajaya, being Puteri Harbour, an integrated waterfront and marina development which offers a panoramic view

of the Straits of Johor. The Land also forms part of the land bank measuring approximately 4,500 acres, which was effectively disposed of to Khazanah as part of the degearing exercise of the UEM World Berhad

It is UEMLAND’s expectations that demand for residential properties in Nusajaya would continue to increase given the scheduled completion of several catalyst projects by the end of 2012. These include the Coastal Highway, the Legoland theme park as well as the local campuses of the University of Southampton and Marlborough College.

+ve and highlights the Group’s confidence on the impact of the new catalyst projects in Nusajaya ability to draw investors into the development.

6) Market – Likely to trend lower led by US/ European markets which have been closed for Easter. Immediate support 1580pts.