FBM30 1607.74
+6.89 pts (+0.43%) Volume
1.25b Value RM1.84b
1) The local bourse opened higher, gaining in tandem with
the region, on expectations that central banks in US & Europe may ease
monetary policy to spur economic growth & amid speculation that China's
Central Bank may cut reserve requirement for banks. The index trended sideways
through the sessions before closing at day's high of 1607.7 pts. The Tech
sector -1.1% surrendered back gains recorded the day before JCY-2.6%,
UNISEM-1.4%, MPI-0.3%. Market breath was positive, with gainers edging losers
390:327. Futures closed 1612.5 pts ( 4.76 pts prem).
2) Heavyweights: CIMB+2% RM7.70, MPHB+2% RM3.48,
AXIATA+1.1% RM5.52, YTLPWR+1.1% RM1.78, AIRASIA+0.8% RM3.60, GENM+0.8%
RM3.63, GAMUDA-0.6% RM3.54, GENTING-0.4% RM9.49, MYBANK-0.1% RM8.70.
3) DBT : BJASSET 21.5m @ RM0.83, MPHB 11.5m @ RM3.44,
IRIS 7.3m @ RM0.15.
4) Situationlas:
MMC-0.4% RM2.61: Group MD said that Co plans to pare down
borrowings & subsequently reduce interest cost by half. The reduction in
borrowings will be via a combination of refinancing, proceeds from the
unlocking of group's assets & other debt/equity capital market transaction.
He said MMC has an interest cost of RM180m pa & it's plans to reduce the
amount by half, will save RM90m a year. Total borrowings as at April 2012
stands at RM21.8b, or net gearing level of 2.4x.
AIRASIA +1.1% RM3.60
: New Chief Executive Aireen Omar said Co may consider exiting AirAsia-X
(AA-X) when the latter undertakes it's
IPO, which could be as early as 4Q this year. It was earlier reported that
Virgin Atlantic was disposing of it's 10% stake in AA-X to existing
shareholders Aero Ventures SB & AirAsia. With Virgin's exit, AirAsia will
own about 20% of AA-X from the present 16%.
5) WASEONG : announced that wholly owned subsidiary Wasco
Energy Ltd has today entered into a conditional Share Sale Agreement (SSA) with
Perdana Petroleum Bhd for the proposed acquisition of 57.7m ordinary shares
constituting 26.9% of the equity interest in Petra Energy Bhd at RM1.68 per
share, for a total consideration of RM96.936m. The purchase consideration was
arrived at by reference to the net asset value of Petra Energy of RM340.8m as
at Dec 2011 ( NTA of RM1.59). This acquisition will enable Waseong to diversify
the product & services it provides to the O&G industry. It will also
allow both companies to pool their respective strength & opportunities in
several areas; Expected.
6) SP SETIA
Announced today that they have mutually terminated the
cooperation agreement with Saigon Hi-Tech Park development company to jointly
plan, evaluate, develop, design, construct, manage and operate a mixed real
property development on 32 hecs of land located in Ho Chi Minh City, Vietnam
after failing to meet conditions precedent.
7)Mk: Bullish
undertone prevailed as investors look forward to an expected rate cut by the
ECB later in the week and also possible stimulus from China and the US after
weaker than expected economic data. Track laggards for a trade if the current risk on status
can be maintained. Main laggards include, Genting, IJM, BAB, Maybulk, MRCB,
UEM.