FBM30 1575.31 +5.88points (+0.37%) Volume 800mil Value 1,446mil
1) KLCI touched day's high of 1578.76 (+9.33pts) inline
with the regional markets which rose on hopes ECB is preparing to take action
to resolve the eurozone financial crisis. Gains were pared as China reported
new bank loans in April dropped 33% from March raising concerns the biggest
banks may fall short of their 2012 loan targets. Broader market was positive
with advancers outpacing decliners 411:278. Futures closed 1571.5 (4 points
discount).
2) Heavyweights: MAXIS+2.04% RM6.51, BAT+3.70% RM55.50,
KLK+1.33% RM22.84, YTL+1.56% RM1.95, AIRASIA+1.93% RM3.70, SIME+0.31% RM9.71, GENM+1.13% RM3.57, TENAGA-0.62% RM6.39
3) DBT: BJTOTO 11.6mil @ RM4.30, LNGRES 8.1mil @ RM0.35
(4.26% PUC, 22.8% premium), HARTA 3.2mil @ RM3.79, MEDIA 18.38mil @ RM2.23
4) Situationals:
GCB+0.75% RM2.70: Company has received the necessary
approvals from the relevant authorities in Malaysia and Singapore for
listing on the main board in SGX
MHB+1.80% RM5.10: News reported company is likely to
secure a contract for the construction of a 6,000 tonne wellhead platform
for Central Diyabekir, Turkmenistan according to its MD and CEO Dominique De
Soras. The outcomde of the tender by Petronas Cairgali is
expected to be announced soon.
5) CMSB
Announced that its wholly owned subsidiary company,
Samalaju Industries Sdn Bhd had entered
into a MOU with Malaysian Phosphate Additives Sdn Bhd for the purpose of
recording their intention to enter into negotiations in good faith pertaining
to an Integrated Phosphate Plant with an annual production capacity of
approximately 500,000 tonnes in
Samalaju, Sarawak at a current estimated cost of RM850 million. The MOU sets
out the terms in respect of the Project to allow the parties to enter into
negotiations pertaining to a joint venture agreement subject to the terms and
conditions to be mutually agreed. The principal activity of MPASB is in the manufacture and
marketing of various grades of Food and Feed Phosphates, Fertilizers Phosphate
derivatives.
The indicative equity structure of the Project Company is
MPASB 60% and SISB 40% provided however that the parties acknowledge other
equity holders may be introduced, subject to mutual agreement. The Project
Company shall undertake a feasibility study in respect of the Project in order
for SISB and MPASB to assess whether it is feasible to proceed with the
Project. The duration period for the exclusivtivity MOU is to 31
December 2012. +ve as CMSB continue to be the best proxy for a play into
Sarawak SCORE projects.
6) Market - The sustainability of the recent bounce back
in equities rely heavily on further evidence that stimulus packages will be
introduced to divert the global economy from a potential double dip recession.
