FBM30 1603.07 +1.64 pts ( 0.1%) Volume 1.48b Value RM1.70b
1)The KLSE opened lower, after US home sales &
manufacturing data missed estimates fueling concerns that global economic
expansion is weakening, as well as Rating agency Moody Investors Services's
downgrade of 15 of the world's biggest banks. Despite the initial weakness,
index crept upwards, moving against regional trend, to trade most of the day above
overnight levels before closing with a modest 0.1% gain. Although there was
improved participation from both retail & institutional investors, market
breath was negative, with gainers trailing losers 312:410. Futures closed 1606 pts ( 2.93 pts prem).
2) Heavyweights: TM+2.9% RM5.69, MISC+2.7% RM4.22,
TENAGA+2% RM6.70, AXIATA+0.9% RM5.47, IOI+0.6% RM5.28, YTL-2.4% RM2.03,
MHB-1.8% RM5.29, GENM-1.4% RM3.55, GAMUDA-1.4% RM3.55, PCHEM-1.1% RM6.56.
3) DBT: LUSTER 218.5m @ prices between RM0.075 to RM0.14
( 20.3% PUC,at a disc to market), LUSTER-WA 10m @ RM0.07, EWEIN 4.9m @ RM0.70.
4) Situationals:
WASEONG +2.7% RM1.90
: after it was reported that Co has emerged as the winner in the bid for
Perdana Petroluem 26.9% stake in Petra Energy. In a Bursa announcement, Waseong
said it had won the bid following the close of submission on June 15. Both
companies did not reveal the value of the share sale, pending execution of a
definitive agreement.
KNM -0.7% RM0.725 : after proposing a 1 for 2 rights
issue with free detachable warrant for the right share ( 1:1 basis). The
indicative price of the new rights will be payable in 2 calls, 1st call @ 40%
of the new rights share price while the remaining 60% will be capitalized from
the share premium account . Completion expected by 4QCY2012.
5) PPB
The company today announced that Waikari a fully owned
subsidiary of 80% owned FFM Bhd has entered into an Equity Interest Transfer
Agreement and a shareholders agreement with Wilmar China New Investments Pte
Ltd for the proposed Kunshan acquisition. Waikari shall purchase a 20% stake in
Yihai Kerry Kushan from Wilmar China for USD10.3m. Waikari may be required to
contribute a proportionate shareholders loan to Yihai Kerry Kunshan. If so, the
shareholders loan is estimated at USD1-.184m thus increasing Waikari's total
investment to USD20.483m. Yihai Kerry Kunshan has a registered capital of
USD47.08m. Its principal activity is flour milling which commenced in June
2011. Net assets stood at RM124m and it registered a net loss of RM19.37m for
FYE 12/2011.
The proposed acquisition represents an opportunity for
the FFM group to tap on the distribution network of the Wilmar Group in PRC and
expand into the growing economies there. The proposed Kunshan acquisition is in
line with the PPB group's stratergy of overseas expansion for its flour
business and is expected to contribute significantly to the group revenue
moving forward. +ve
6) Market - The KLCI continues to defy global concerns
ahead of the key listing of Felda next Thursday. If current conditions prevail
we recommend a trim into strength as we do not expect a strong follow through
after the mid year closing activity expected next week.