1) KLCI gained for the 3rd consecutive days ahead of
tomorrow 's 2013 budget announcement as Telco's continued to pace gains by key
heavyweight with index reaching a high of 1631.67 (+12.37points). Regionals were also firmer on expectation China will
announce new measures to stimulate and support economic growth. Market breadth
was positive with advancers leading decliners 363:303. Futures closed 1633.5pts
(6 points premium).
2) Heavyweights: DIGI+3.32% RM5.29, MAYBANK+0.78% RM9.02,
TENAGA+1.19% RM6.82, AXIATA+0.79% RM6.39, PBBANK+0.56% RM14.36, AIRASIA+3.51%
RM2.95, TM+0.99% RM6.09, CIMB-0.81% RM7.32
3) DBT: GBGAQRS 5mil @ RM1.12, DBE 4.5mil @ RM0.065
4) Situationals:
AIRASIA+3.5% RM2.95: Share price recovered after Group
CEO Tan Sri Tony Fernandes said AirAsia will look into building synergies
and cooperation as they discuss potential areas of collaboration with Lion Air
CEO Rusdi Kirana and stakeholders of Malindo Airways soon. AIRASIA will also
not hesitate to establish itself in India if the aviation environment and tax
structure are viable for low-cost airline operations.
5) E&O: In a statement today, Co said that it expects
to launch properties worth an estimated RM2.5b over the next 12-18 months. It
will be in the group's new growth locations of Iskandar Malaysia and London, as
well as Penang & KL city centre. Half the targeted sales will come from
Iskandar & London. Over in London, E&O made it's first international
foray with the purchase with the purchase of the prime freehold Princes House
property in London Westminster Borough, slated for refurbishment with potential
for conversion. Co is also in the midst of launching the RM1.2b Andaman
Condominiums at it's flagship Seri Tanjung Pinang master planned development in
Penang ; There is still the long drawn court case by an E&O minority who
brought a suit against the SC for failing to compel Sime Darby to do a GO.
However, the longer term prospects of the group remains positive as its Penang
properties are selling well, and launches of new projects in KL & Johor
could excite the market. HOLD
6) Mkt: cautious trade as tomorrow's Budget Day is
typically a weak trading day. In addition, there are talks of potential hikes
in gaming tax and Real property Gains Tax, coupled with an existing budget
deficit that is bordering on a potential downgrade by rating agencies should it
worsens further. On the other hand, tomorrow is also the last trading day for
Q3 and is likely to see buying support from portfolio managers.