FBM30 1632.35 +7.41 pts (0.46%) Volume 1.22b Value RM1.28b
1) The KLSE opened firmer, as support grew among European
leaders to tackle the debt crisis & ensure the survival of the monetary
union. However gains were short-lived as the market succumbed to
selling pressure, trading lower & sideways for most of the day before late
buying in selective counters ( PETGAS+7.2%) pushed index up to close with a
gain of 7.4 pts. Market volume mainly dominated by 3rd liners, PATIMAS +18%,
BIOSIS+41%, THHEAVY+8%. The broader market was positive, with gainers leading
losers 426:305. Futures closed 1628.5 pts ( 3.85 pts disc).
2) Heavyweights: PETGAS+7.2% RM19.30, SKPETRO+2.5%
RM2.44, MRCB+3.5% RM1.79, BOUSTEAD+1.5% RM5.53, BAT-2.6% RM60.36, MISC-1.3%
RM4.53, MAXIS-1.3% RM6.32, GAMUDA-1.1% RM3.48.
3) DBT: BIOSIS 19.1m @ RM0.275 (43% disc to close),
DUTALAND-LA 13m @ RM0.38 (8% disc), ECOFIRS 3m @ RM0.165.
4) Situationals:
MRCB+3.5%: after it was reported that MRCB is considering
to acquire a private company, Nusa Gapurna Development SB, to leverage
on the it's landbanks worth up to RM1.3b. Gapurna is managed by Datuk Mohd
Salim Fateh Din. Based on the report, the price tag was reported at the range
of RM11-13b, which is mainly the total GDV of Gapurna's landbanks located in PJ
& other Klang Valley areas of approximately 60 acres. The acquisition is
said to involve a share swap exercise between EPF & Gapurna, which will
result in Gapurna holding about 20% of MRCB.
MPHB+2.3%: after a weekly publication said that both the
management of MPHB and it's bankers have yet to firm up the price for
the listing of it's non gaming assets. It's said that MPHB will submit the
draft prospectus for the Newco listing to SC by the end of next month. To
recap, the non gaming assets were earlier valued around RM1.4b, while for the
de-coupling exercise, the existing shareholders were expected to be rewarded
with a 56s one off special dividend.
5) KJOO
Announced that an agreement had been signed in Vietnam on
27 July 2012 between KJCF and Nihon Canpack Co. Ltd. of Japan to dispose and
transfer its 60% shareholding in Kian Joo Canpack (Vietnam) Co., Ltd. to NCP
Japan for a cash consideration sum of USD9.30 million. KJCPV is involved in the
contract packing of coffee, tea and fruit juices in Vietnam Binh Duong Province
whereby NCP Japan is the joint venture partner that holds a 40% shareholding in
KJCPV.
The above disposal is expected to be completed within one
month from the signing of the said agreement after the issuance of the new
Investment Certificate to the new owner, NCP Japan. Meanwhile, KJCF will
continue to supply cans to KJCPV which will be renamed Nihon Canpack Vietnam
Co. Ltd., and maintain its cooperation as before.
Comments : this is an unexpected development as KJCPV had
initially been seen to be its vehicle to grow in the expanding market in
Vietnam catering for the MNC exports.
6) Market - KLCI to move in line with global rebound on
expectations of world central banks acting soon to avert a debt crisis in
Europe and avoid further global slowdown. Trading Buy IJM.
