1) KLCI shrugged off early weakness to close firmer while
global equity markets was mixed on concerns slowdown in China export to 5.9%
could signal the possibility of slowing growth in global economy. Index
recovered as weakness in china data prompted market speculations of possible
monetary easing in China. Penny stocks dominated the volume with gains seen in
FOCUS+10%, PERMAJU+8%, HWGB+8%. Broader market was positive with gainers edging
losers 376:358. Futures closed 1583 (5 points discount).
2) Heavyweights: MAYBANK+0.57% RM8.75, PETGAS+1.77%
RM17.28, AIRASIA+3.11% RM3.65, GENTING+0.75% RM10.68, SIME+0.31%
RM9.80, AXIATA+0.37% RM5.38, BAT-0.7% RM54.00, IOICORP-0.38%
RM5.22
3) DBT: SCOPE 10mil @ RM0.10 (3.4% PUC, 52% discount),
BJMEDIA 2.2mil @ RM0.41
4) Situationals:
PETGAS+1.77% RM17.28: Share price was firmer after its 1Q
net income rose 25% to RM333.5 million, or 16.9sen per share, from
RM266.7 million. Sales climbed 3% to RM914.8 million boosted by higher
utilities and gas transportation revenue. Going forward completion of the
regasification terminal in Malacca within the next 12 months will positively
impact earnings
5) IGB
IGB announced that it has entered into two (2)
conditional Shareholders Agreements with Selia Pantai for the establishment of
two (2) joint ventures through an equity participation of 70:30 basis each in
Southkey Megamall Sdn Bhd and Dimensi Magnitud Sdn Bhd to acquire and develop
the Land into the Proposed Development. Southkey Megamall and Dimensi Magnitud
are presently wholly-owned subsidiaries of IGB. Under the terms of the SAs, IGB
and Selia Pantai will respectively hold 70% and 30% of the issued and paid-up
share capital of Southkey Megamall and Dimensi Magnitud.
The Land is to be acquired from Selia Pantai measuring
approximately 1,570,526 square feet, is currently vacant and zoned for
commercial use. The Land is presently charged to Ambank (M) Berhad and a
sum of approximately RM25,913,679 shall be payable to the Chargee to fully
redeem the Land. IGB will finance its 70% investment in the Land and working
capital towards payment for the Proposed Development using internally generated
funds and/or bank borrowings.
Funding likely to be drawn down from the proposed retail
REIT with Kris Asset and possibly further down the road a office and/or a
hospitality REIT. This would degear IGB from being a asset heavy company and
allow it's to redeploy funds into new developments. +ve
6) Market - Issues in Europe will continue to dominate
immediate sentiment, hence most investors continue to remain sidelined in view
of the uncertainties.