FBM30 1594.24 -7.65 pts (0.48%) Volume
1.56b Value RM2.74b
1) The local bourse fell in early trading & remained
depressed thereafter, as optimism about positive US economic reports was
overshadowed by disagreements amongst European leaders ahead of a summit on the
region's debt crisis today. Market interest was focused on FGV which made it's
debut on the KLSE, ending the day with a commendable 16% premium over it's IPO
price of RM4.55 after touching an intraday high of RM5.46. It made up 50% of
total value traded for the day. The property sector +0.32% bucked market trend,
led primarily by KLCCP+12%. The broader was negative, with losers thumping
gainers 477:248. Futures closed 1592 pts (2.24 pts disc) .
2) Heavyweights: MRCB-2.8% RM1.77, BAT-1.6% RM55.10,
MHB-1.3% RM5.17, IOI-1.2% RM5.14, GENM-1.1% RM3.52, PBBANK-1% RM13.76,
MISC+2.7% RM4.54, WCT+2.9% RM2.45, GAMUDA+0.6% RM3.46.
3) DBT: LUSTER 70.9m @ RM0.14, KURASIA 27m @ RM0.635,
PREMIER 15m @ RM0.40 ( 5% premium).
4) Situationals:
IJM -0.6% RM5.08 : after Co announced that the Govt, via
the Public Private Partnership unit (PPP), has decided not to proceed with the
proposed 9.6km extension of the NPE. The Cabinet had earlier approved the
project in April 2011. The alignment, costing, concession terms & financial
closing have yet to be sorted out on the project. The NPE is 100% owned by IJM
Corp.
WCT +2.9% RM2.45: Announced that Dubai based Meydan LLC
has filed a civil suit against WCT and it's JV partner Arabtec Construction LLC
in their long standing dispute over the construction of Nad Al-Sheba
racecourse. In a Bursa filing, WCT said Meydan has filed a civil claim of 3.5b
UAE Dirham ( RM3b) against the WCT-Arabtec JV.
5) CREST BUILDER
Crest Builder Holdings Berhad, through its 51%
subsidiary, Landasan Bayu Sdn Bhd, received a Letter of Intent from Lembaga
Getah Malaysia (Malaysian Rubber Board) for the Proposed Development on Lot 76,
Seksyen 88, Bandar Kuala Lumpur.Lot 76, located at the intersection of Jalan
Ampang and Jalan Jelatek,measures approximately
19,247.34 square metres in area. Landasan Bayu Sdn Bhd, is a 51:49%
joint venture between Crest Builder Sdn Bhd and Tindakan Juara Sdn Bhd.
The Proposed Development is a mixed development,
comprising three 28 storey Apartment and SOHO Towers, a 33 storey Corporate
Tower and a 6 storey Boutique Retail Mall, complete with the infrastructure,
common facilities and common services.
The Development is expected to commence physical works in
2013, and is expected to be completed in 2018.The Proposed Development is
expected to have an estimated Gross Development Value (GDV) of RM1.33bn, based
on a plot ratio of 1:8.0. The estimated Gross Floor Area of the Development is
expected to be about 1.65 million square feet.
Under the Proposed Development Agreement, Lembaga Getah
Malaysia (MRB) is entitled to RM300m in a mixture of both cash entitlement as
well as completed property entitlement. +ve this comes hot on the heels of its similar business
model on its tie
up with Prasarana to develop the Dang Wangi LRT station
with a GDV of RM1.04bn where Prasarana will be entitled to 21.1% of the GDV.
Both these projects will catapult CrestBld immediately into the big league
development from its traditional construction base. Trading BUY
6) Market - Main local funds are likely to maintain
buying support tomorrow ahead of 2012 1H closing but with no expectations of a
solution coming from the Euro Summit over the week end, focus will return to
the unsustainable sovereign debt issue hence we continue to recommend a sell
into strength at this juncture.
