FBM30 1570.62
-4.69points (+0.37%) Volume
577mil Value 988mil
1) KLCI snapped its three day gain, trading in the red
the whole day as investors remain wary of global economy after Fitch downgraded
Spain 3 notches to BBB on concern Spain's troubled banks' situation could
worsen. Disappointment prevailed after Ben Bernanke dampened expectations for
further monetary stimulus and German exports dropped. Investors continued to
shy away from the market as evident by paltry 577mil shares traded. Broader
market was negative with losers leading gainers 376:288. Futures 1573.5 (3pt
premium).
2) Heavyweights: GENTING-2.35% RM9.56, IOICORP-1.56%
RM5.06, MAXIS-1.38% RM6.42, PCHEM-0.77% RM6.49, AXIATA-0.37% RM5.35,
MAYBANK-0.23% RM8.70, YTL+3.63%
RM2.00, PETGAS+1.48% RM17.80
3) DBT: LNGRES 34.8mil @ RM0.35 (18.3% PUC, 30% premium),
COMPUGT 10mil @ RM0.115 (44% premium), SEACERA 4.2mil @ RM0.70 (4.2% PUC, 27%
premium)
4) Situationals:
WCT+0.83% RM2.42: Share price bucked the weaker market
after announcing a contract worth RM72.8mil for industrial civil works from
Vale Malaysia Minerals Sdn Bhd. This is the 2nd time WCT score a job from Vale
which lifted its outstanding orderbook to RM2.5bn.
AFFIN+3.9% RM3.20: Vol and px breakout surging to a high
of RM3.38 in early morning after market talk that Bank of East Asia could be
divesting its 23.5% stake in Affin in an effort to monetise their assets. This
potential divestment could spur stk to play catch up in terms of its valuations
(trades as cheapest bank in town with P:B 0.9x only).
5) Crestbldr (RM1.03)- announced price fixing for its
(10%PUC) 12,385,215 new placement Shares at RM1.00(par value)-representing a
discount of approximately 2.25% from the 5-day volume weighted average market
price of the CBHB Shares up to and including 7 June 2012, being the market day
immediately preceding the Price Fixing Date of RM1.023. There is also a
proposed bonus issue of new warrants on basis of 3 warrants for every 10 shares
held on an entitlement .
Co is in the midst of expanding further into property
development as it was recently awarded with the redevelopment of Dang Wangi LRT
station and potentially MRB's land opposite GE Mall which could enhance its GDV
by RM2bn. Its unbilled construction OB stands at RM500m v mkt cap of RM128m.
Trades at attractive PER 6.8x-trading buy.
6) Mkt - tomorrow's China economic numbers and European
leaders' scheduled talks over the wkend on possible aid is unlikely to yield
definitive results to sooth investors' frayed nerves. Investors' reluctance to
commit until an European debt solution can be found will see volatile, thin
trading conditions prevail.