Tuesday, June 5, 2012

Market Roundup | 5 June 2012

FBM30 1555.18   -18.41points (-1.17%)  Volume 677.6mil   Value 1,144mil

1) Global equities was sold off as KLCI ended at day's low following disappointing US job growth figures and a weak China service industry, raising concern the debt situation in Eurozone are causing a slowdown in the global economy. Plantation-2.26% was the biggest sector loser led by IOI, KLK after CPO futures broke RM3,000/MT falling to a low of RM2925/MT its lowest level since Nov'11. Broader market was negative with decliners trashing advancers 674:114. Futures closed 1552 (3 points discount).

2) Heavyweights: IOICORP-3.66% RM5.00, GENTING-3% RM9.70, MAYBANK-1.04% RM8.60, PCHEM-2.10% RM6.52, GENM-4.07% RM3.54, TENAGA-1.38% RM6.42, PPB-2.33% RM15.92, PBBANK-0.44% RM13.64

3) DBT: GPRO 11.2mil @ RM0.05 (4.5% PUC, 47% discount), HWGB 5mil @ RM0.38, IJACOBS 4.5mil @ RM0.165 (3.75% PUC, 26.6% discount)

4) Situationals: 
GENM-4.07% RM3.54: share price fell after news reported they are not the only party being considered for a planned USD4bn mega convention centre that could come with a casino license. MGM Resorts International is among the companies in the queue.

5) ALAM M 
Announced that Alam Radiance (L) Inc, a jointly controlled company signed a Memorandum of Agreement with Pacific Crest Pte Ltd, Singapore for the purpose of acquiring a Accommodation Work Barge identified as Crest Station 3. Crest Station 3 is purchased at a consideration of USD31.55m; equivalent RM94.65m only. Upon delivery, Crest Station 3 is expected to serve a contract with Exxonmobil Exploration and Production Malaysia Inc,  announced on 28 May 2012.  +ve as this contract generates above market rates but expected. BOW

6) Market - Weakness to persist without a fresh round of stimulus from the US and China while Euro debt worries will continue until some form of jointly issued debt is agreed upon to help recapitalize the banking system. Track these events for a rebound.