FBM30 1600.85 +1.7 pts (0.11%) Volume 1.08b
Value RM1.28b
1) The market advanced after Eurozone leaders agreed on
measures to cut soaring borrowing costs in Italy & Spain, in addition to
directly recapitalizing regional banks & better than expected economic
reports from China to Japan. Trading was confined to a narrow 5 pts range
before mild late selling closed it near day's low. The Construction sector,
which lagged recently, recovered +1.2% MRCB+4%, GAMUDA+1.7%,
MUDAJAYA+1.1%. The Technology sector +1.32% outperformed
led by UNISEM+5.9%. The broader market was positive, gainers
leading losers 412:302. Futures closed 1604 pts (3.15 pts prem) .
2) Heavyweights: MRCB+4% RM1.82, MPHB+3.3% RM3.41,
PARKSON+2.4% RM4.69, DRB+2% RM2.57, HLBANK +1.8% RM12.66, PCHEM-0.8% RM6.42,
SPSETIA-0.8% RM3.71, RHB-0.5% RM7.36.
3) DBT: CENSOF 8.7m @ RM0.355 ( 16% disc), UNICO 4.5m @
RM1.20, FRB 3.5m @ RM0.75 - RM0.86 ( disc to overnight).
4) Situationals:
GENM unch RM3.60
: After the Miami Herald reported
that Genting has signed to open a luxury boutique casino called Resort World
Bimini Island in the Bahamas, estimated to cost US24m ( RM76m). The 10,000 sq
ft casino deal, on the tiny island of Bimini, is a strategic partnership
between GENM & RAV Bahamas. It's scheduled to open in Dec 2012, featuring
full scale table games, slots & sports betting. The group plans to
refurbish a structure built more than 5 years ago when the casino project was
first conceived. The outlay of US24m relatively insignificant to GENM, compared
to it's net cash of RM1.04b.
UMW +1.4% RM9.26 : Co said that it is now building up
it's drilling assets to drive the O&G division to profitability. It was
looking to expand it's fleet of rigs. The strategy moving forward will be to
focus on drilling activities & oil field services and will be categorized as
core business under the O&G division. This came on the back of Co's lack of
success in the pipe segment business.
5) IHH
Prospectus was posted today for their 2.23bn share
offering consisting of 360m for Bumi and MITI approved inst; 138m to
institutions via a book building exercise; public offering of 208.51m @ RM2.85
or at the final institution price if lower; Singapore secondary listing of
140.64m shares; cornerstone offering of 1,387.5m shares at the institution
price.
Global tranche book building opens on the 3/7 and closes
11/7 for a price fixing on the 12/7.
IHH will be one of the largest listed private healthcare
providers in the world based on market cap up[on listing (RM22.96bn based on
RM2.85), with leading market positions in Singapore, Malaysia, Turkey and
investments in India, Vietnam, Brunei, Philp, Thai and Macedonia. Proceeds of RM4.66bn will primarily be used for repayment
of bank borrowings.
Conerstone bidders include AIA, Blackstone, Capital
Group, CIMB P, CMY Cap, Eastspring, EPF, Fullerton, GSIC, HPL, Hwang, IFC, JF
Asset, Keck Seng, Kencana, Kuwait Inv, LTH, Mezzanine Eq, Newton, OCH-Ziff,
PNB.
Interesting to note that the 6 months lock up period for
cornerstone is not applicable to the first 50m shares a cornerstone investor
holds. The guidance range for the institution bidding tranche is set between
RM2.67 to RM2.85.
+ve not only for the overall profile of the KLSE but the
healthcare sector as a whole due to the rich valuations IHH is being
listed at. Main beneficiaries from a rerating of the sector include
KPJ, Pharma, Faber and to a lesser extent TMCLife and Stemlife.
6) Market - Continue to be event driven with next
milestone being the ECB meeting on the 5th.
