FBM30 1614.43 +0.68pts
(+0.04) Volume 1.116bil Value 1.388b
1) The KLSE closed at its high maintaining its record
setting pace erasing earlier losses from traders squaring positions ahead of
the Spanish and Irish bond auction. The turn around came in the late afternoon
when there was evidence of program buying from the foreign side which helped
the KLCI close marginally higher (gainers leading losers 376:370) future closed
at (1618 +3.5pts prem)
2) Heavyweights: GENTING +2.55% RM9.66, UMW + 2.44%
RM9.70, RHB +2.97 RM7.62, BAB -1.24% RM3.97, GENM -1.38 RM 3.58.
3) DBT :PLS 76.5M @ RM1.21 (23.2% of PUC and 10% above
mkt px RM1.10), SCOPE 13.5M @ RM 0.20, SAM 2.5M @ RM2.10, FGV 0.5M @ 5.20
4) Situationals:
Plantations were generally higher led by GentP +$%,
TWSPLT +2.8%, IJMPlt +3.3% as inventories remained low ahead of higher
shipments expected for the seasonally high demand months of Ramadan as Soyabean
oil premium over palm recently reached its highest levels since Oct 2011.
5) SIME/ SP Setia
Sime Darby, S P Setia and Kwasa Global (Jersey) Limited ,
a wholly-owned company of the Employees Provident Fund Board, have entered into
a Subscription and Shareholders' Agreement
together with the following parties to regulate their participation in
the JV in relation to the acquisition of the Battersea Power Station site in
London. Party Agreed Proportion SDPL 40%, SIL 40%,KGDL 20%.
The Parties agreed that the purchase consideration of the
Property is £400 million and that the estimated project development cost for
the 2-year period commencing from the date of completion of the Contract is
£200 million. Future capital contributions by the Parties for the JVCo shall be
on a pro rata basis based on the Agreed Proportion. Where practicable, JVCo
would meet funding requirements via external borrowings from financiers
provided that such borrowings or the effect of such borrowings would not result
in the gearing of JVCo exceeding prudent levels.
The Property is located at the Battersea Power Station
site in London, UK and is a freehold land. It is situated in front of the River
Thames between Chelsea Bridge to the west and Vauxhall Bridge a little further
to the east, measuring 39.1 acres in total.
The Project spans over approximately 15 years and it is
envisaged that the property will be a mixed residential and commercial
development involving amongst others, private residential units, serviced
apartments, office, retail, food & beverage and hotel. The estimated gross
development value for this Project is close to £8 billion.
Comments : while SIME and EPF have the balance sheet to
fund their commitments in this project, going forward SP Setia is likely to
need a cash call especially if they have plans to launch future new projects
either in Malaysia or abroad.
6) Market - Barring any unknown negative factors, the
current sentiment is likely to continue with an immediate target of 1625 for
the KLCI.
