Market Roundup | 4 May 2012

FBM30 1591.04     +7.87points (+0.50%)  Volume 1,330mil     Value   1,589.6mil     

1) KLCI closed at day's high bucking the regionals which fell on news US service industries expanded less than expected. Investors snap up stocks which were recently sold off led by UEMLAND+2.5%, BENALEC+9%, MRCB+3% and MAYBULK+8.5% while index was marked up 5pts at close pushed up by gains in TENAGA, GENTING, PCHEM. Broader market turned positive with gainers thumping decliners 456:274. Futures closed 1583 (8 points discount).

2) Heavyweights: TENAGA+2.33% RM6.60, GENTING+1.33% RM10.64, PCHEM+1.53% RM6.65, AXIATA+0.75% RM5.37, SIME+0.41% RM9.79, IOICORP+0.57% RM5.27,AIRASIA+1.11% RM3.64, UEMLAND+2.42% RM2.12

 3) DBT: EDUSPEC 10.1mil @ RM0.11 (2.7% PUC), YINSON 4.1mil @ RM1.82 (2.1% PUC), RPB 3.9mil @ RM0.38 (5.5% PUC, 9.5% discount)

 4) Situationals: 

FAJAR+1.58% RM0.965: Company received a LOA from MRCB Engineering Sdn.Bhd for the Construction, Completion, Testing and Commissioning of Depot and Traction Power Substation Kg. Kuala Sungai Baru including Civil Works, External Works and all other associated works (Package B) for Ampang Line Extension Project. The Sub-Contract sum is RM299.8mil. The construction shall be completed within 30 months from the commencement date. 

5) HIBISCUS

Executed the Transaction Agreements between Lime Petroleum Plc, a jointly controlled entity of Hibiscus Petroleum, and North Energy ASA to Secure Interests in 4 Concessions in Norway. Current ownership interest of North Energy Interest to be transferred to Lime from the 4 various production lic will range from 10% to 20%. The purchase consideration for the Proposed Transfer of Norwegian Interests to Lime is approximately NOK31.8 million (equivalent to approximately USD5.5 million or RM16.8 million)* if the transfer is completed in 2012. It will increase to approximately NOK31.8 million plus Lime's share of actual costs incurred in 2012 if the transfer is completed in 2013. In the event that the partners of any of the production licenses shown in Table 1 elect not to extend the tenure of a license for technical or commercial reasons, then Lime will have the option to replace such unavailable production licenses with an equal number of optional production licenses.

 If completion of the Agreements is not achieved by the Long-Stop Date of 1 July 2013  as a result of Lime being unsuccessful in its Pre-Qualification application, Lime is obligated to pay the minimum consideration amount of NOK27.5 million (equivalent to approximately USD4.8 million or approximately RM14.5 million) to North Energy. The amount of NOK27.5 million is payable upon execution of the Agreements.

6) Market - Focus will be on election results in Europe and US Payroll numbers out tonight. Underlying tone remains cautious.