Wednesday, September 12, 2012

Market Roundup | 10 Sept 2012

FBM30  1621.04 -3.51 pts ( -0.22%)     Volume 876.4m    Value RM1.44b
 
1) Early gains were quickly erased as market succumbed to selling, on the back of mixed regional markets as reports from the US, China & Japan that showed slowing growth stoked speculation central banks will add to stimulus measures. Election fears still apparent, as reflected in the cautious trading tone of GLC names DRB-Hicom-1.6% MRCB-2.4%, FGV-1.9%, UEMLand-3.3%. Technology sector-2% main loser, led by JCY-4.9%. Market breath negative, with losers overwhelming gainers 520:220. Futures closed 1608 (13 pts disc) .
 
2) Heavyweights: MAYBANK+1.6% RM9.17, MISC+1.4% RM4.22, TM+1% RM6.06, AIRASIA-3.2% RM3.28, PCHEM-3.2% RM6.28, BAT-2.3% RM63, CIMB-1.3% RM7.40.
 
3) DBT: BJCORP 1.2m @ RM0.627 , PRDUREN 1m @ RM0.80, FAJAR 1m @ RM0.68 ( 7% above close).
 
4) Situationals;
 
PERWAJA +1.7% : after it's almost 1-year wait to secure an iron ore mining concession ended with the official award of a 243 ha concession in Bukit Besi by the Terengganu government, said sources close to the group. The concession would enable Perwaja's unit Perwaja Steel SB to mine iron ore under a mining lease which would be subject for renewal every 10 years, up to 42 years. Given this, Perwaja expects it's mining division to start contributing to group earnings by Q4 of this year.
 
SKPETRO-0.4% -: jointly held company SapuraAcergy Sdn Bhd (SASB) has clinched a charter contract for its vessel, the Sapura 3000, worth US45 million (RM139.5 million). The company said the provision of Sapura 3000 was to undertake heavy lifts in the Gulf of Mexico region. "The charter commenced on 18 August 2012 for a duration of 125 days, and is expected to contribute positively to its earnings for the financial year ending Jan 31, 2013.
 
5) PETRONAS Gas Berhad Entered into a Shareholders Agreement with Sabah Energy Corporation Sdn. Bhd. ("SEC") whereby SEC will be subscribing to 1 ordinary share of RM1,000 each in the equity of Regas Terminal (Lahad Datu) Sdn Bhd ("RGT"). RGT is currently a wholly owned subsidiary of PGB. The Agreement further provides for SEC with the option of subscribing up to 20% of the equity of RGT within a stipulated time period.
 
RGT will be the vehicle of a joint venture between the entities of which RGT would be responsible for the overall coordination and strategic management of the project during the development stage and will also own, operate and maintain the LNG Regasification Facilities in Lahad Datu, Sabah . The Facilities is scheduled to be completed in 2015 and will have a send out capacity of 0.76 million tonnes per annum.
 
The option period for SEC to subscribe up to 20% of the equity of RGT is up to 12 months of the commercial operation date of the Facilities, failing which, the subscribed share by SEC up to the said date as well as the right to subscribe to the 20% equity will revert back to PGB. SEC shall be given up to 6 months after the commercial operation date of the Facilities to subscribe to the full 20% portion of the equity at par value. Beyond the 6 months period and up until 12 months after the commercial operation date of the Facilities, SEC would then have to subscribe to the full 20% portion of the equity at a premium.
 
+ve as the country will begin importing gas this month and PGas has been mandated by the government to own and operate all regas facilities. The JVs will enable the company to monetise this monopoly position and reduce its risk.
 
6) Market - Weak global economic numbers and a pending Election will keep investors generally sidelined. Stocks that have been sold down to attractive levels in the current down turn include, YINSON, AirAsia, SUNWAY, MPHB