FBM30 1613.75
+6.01 pts (0.37%) Volume 1.08b Value RM1.70b
1) The KLSE advanced for the fourth consecutive day,
backed by speculations that central banks in China and Europe will take action
to spur growth and as US factory order beat estimates. The Plantation sector
+1.32% stood out, KLK+3%, GENP+1.6%, IOIC+0.8%, on increased optimism that CPO
prices will trend higher. The broader market was positive, with gainers leading
losers 408:353. Futures closed 1617 pts (1625 pts prem) .
2) Heavyweights: KLK+3% RM23.90, AIRASIA+2.8% RM3.70,
PCHEM+2.5% RM6.62, UMW+2.1% RM9.47, BURSA+1.8% RM6.35, DRB+1.6% RM2.62,
MRCB-1.1% RM1.81, YTL-1% RM2.00, MISC-0.9% RM4.58, MHB-.8% RM5.26.
3) DBT: SCOPE 25.5m @ RM0.20 ( 32% disc, 8.7% PUC),
HUBLINE 17.5m @ RM0.07, PDZ 11.3m @ RM0.08
4) Situationals:
SPSETIA-0.5% RM3.69 : After Co told Bursa in a filing
that it's proposed 32ha property development project in Vietnam has been
cancelled. It said that condition precedent set out in the cooperation
agreement between Setia Saigon East Asia Ltd & Saigon Hi-Tech Park
Development Co were not met yesterday, which was the expiry date of an already
extended condition precedent fulfillment period.
TEBRAU unch RM0.755: after announcing that it had
received an offer from Iskandar Watefront Holdings SB (IWH) for the latter to
acquire all the remaining shares not already owned by it in Tebrau Teguh for
76s per share. IWH had earlier made the offer on Jan 29 to Tebrau's substantial
shareholder, Kumpulan Prasarana Rakyat Johor SB, to acquire 222m shares or a
33.15% stake in Tebrau for RM168.72m.
5) PLANTATION: Palm oil climbed for a 4th day to the
highest level in a month on speculation that central banks will take more steps
to boost economic growth, increasing demand for commodities. The European banks
is forecasted by economists to cut interest rates tomorrow & a govt linked
paper in China said reserve requirements may be reduced 3 more times this year.
To add to these, weather conditions in the US and crude oil's gains will also
support palm oil. Higher tree stress setting in, rising demand ahead of the
fasting month & Raya festive season & global weather disruptions should
suggest CPO staying higher for longer; Remain OVERWEIGHT.
6) Mkt: to grind higher with plantation sector set to
continue its outperformance and rotational play among the small market caps oil
& gas stocks - buy major laggard, Dayang.
