FBM30 1576.23 pts
+0.16 pts ( +o.o1%) Volume 677m
Value RM1.22b
1) Malaysian stocks advanced early, amid speculation that
the Federal Reserve will take steps to stimulate the US economy & after the
ECB endorsed a plan to guarantee bank deposits. However, optimism was capped
ahead of the Italian bond auction & Greece election. Trading was choppy
& restricted to a narrow range as the mixed regional markets provided
little lead, before late selling pushed index to close at day's low of 1576.07 pts. Investors again largely remained side-lined
as evident from the moderate volume. The broader market was positive, with
gainers leading loser 386:282 . Futures
closed 1572.5 pts ( 3.73 pts disc).
2) Heavyweights : UMW+1.8% RM8.32, TM+1.3% RM5.53, ARMADA+1.3%
RM4.05, DIGI+1% RM4.10, TENAGA+0.6% RM6.48, GENTING-1% RM9.40,
PPB-0.8% RM15.72, GENM-0.6% RM3.44, PCHEM-0.6% RM6.38.
3) DBT: PRTASCO 44.6m @ RM1.20 ( 26% premium, 14.9% PUC),
BYASSET 15m @ RM0.83, DBE 14m @ RM0.07
4) Situationals:
MAS +2.7% (RM1.15)
: after news report said that Co has found enough takers for it RM2.5b 10-year
perpetual Sukuk, of which the first RM1b tranche was issued to KWAP. The Sukuk
will be utilized as working capital & refinancing of existing borrowings.
Co also said that it has obtained firm commitments for the remaining RM1.5b
tranche. The Sukuk carries a profit rate of 6.9% pa for the first 10 years. MAS
CEO said management will be announcing it's new business plan on June 21, after
it's AGM.
CBIP +2% (RM2.48)
: after Co announced that it has secured a RM40m contract from Jaya Tiasa
Holdings to supply & install part of the mechanical & engineering works
of a 120 tonnes/hour palm oil mill.
5) STARHILL REIT
Announced that it's wholly owned subsidiary & trusts
have entered into 3 separate Hotel Business & Property Sale Agreements with
the respective sellers of Marriot Hotels' properties & business assets,
namely Commonwealth Managed Investments Ltd
(CMIL) to acquire the Marriot Hotels for a total cash consideration of AUD
415m ( RM1.31b). The Marriot hotels are located in prime CBDs in Sydney,
Melbourne & Brisbane. The proposed acquisition is expected to contribute
positively to Starhill's distributable income and distribution per unit &
reposition Starhill REIT with 2 more income streams comprising a) stable fixed
lease rental from it's existing properties and b) variable income from the
Marriot hotels. The acquisition will increase the Trust's property assets from
RM1.58b to RM3b comprising hospitality assets in Malaysia, Japan &
Australia. The acquisition is expected to be funded though a combination of
bank borrowings & existing cash of the Trust;+ve
6) Market - Jitters remain evident in Europe with
borrowing cost rising after the German and Italian debt auctions today.
Cautious stance remain with range bound trading between 1530pts -1580pts.